Maui Bill 88 Explained: Hotel Rezoning, Short-Term Rentals & What Property Owners Should Know
Understanding Maui's Evolving Short-Term Rental Landscape
Maui's approach to short-term rentals has changed significantly over the past several years.
Between Bill 9, Bill 88, Ordinance 6008, and the County's ongoing hotel rezoning process, many buyers, owners, and investors are understandably asking the same question:
"What do these changes actually mean?"
The answer is more nuanced than many headlines suggest.
Rather than eliminating all vacation rentals, Maui County is gradually reshaping where and how visitor accommodations may operate through updated zoning classifications and property-specific evaluations.
For buyers, sellers, owners, and investors, understanding these changes is essential to making informed ownership decisions.
Why Bill 88 Was Created
Bill 88 (now adopted as Ordinance 6008) was designed to establish a clearer zoning framework for certain long-established visitor accommodations.
Historically, many condominium properties operated as legal transient vacation rentals despite being located within apartment-zoned districts.
This created uncertainty for:
- Buyers
- Owners
- Lenders
- Real estate professionals
- Property managers
- Community associations
Bill 88 introduced new hotel zoning classifications intended to better align zoning with actual long-standing visitor accommodation use.
How Bill 9 and Bill 88 Work Together
Although frequently discussed together, Bill 9 and Bill 88 serve different purposes.
Bill 9
Bill 9 proposed phasing out many transient vacation rentals located within apartment-zoned districts.
Its primary objective was increasing long-term housing availability.
Bill 88
Bill 88 created new zoning tools that allow certain long-established visitor accommodations to transition to hotel zoning classifications.
Rather than simply prohibiting vacation rentals, it established a regulatory pathway for eligible properties.
Understanding this distinction helps explain why current County actions involve rezoning rather than blanket prohibition.
What Are H-3 and H-4 Hotel Zones?
Bill 88 introduced two new hotel zoning classifications.
These districts are intended to recognize visitor accommodations that have historically operated as legal transient vacation rentals.
For many eligible properties, these classifications may provide:
- Greater regulatory clarity
- Improved long-term planning
- Stronger financing confidence
- Better resale positioning
- Clearer visitor accommodation rights
Implementation continues through individual County review and approval processes.
The Current Rezoning Process
Following the adoption of Ordinance 6008, Maui County has continued to evaluate eligible properties for possible transition to H-3 and H-4 hotel zoning.
In July 2026, the Housing and Land Use Committee advanced additional resolutions moving this implementation process forward.
Importantly:
These committee actions do not represent the final outcome.
Additional public hearings, Council actions, and County approvals remain before individual properties officially receive new zoning designations.
What Is the Minatoya List?
Many discussions surrounding Bill 88 reference the Minatoya List.
This list generally identifies condominium projects that historically operated as legal transient vacation rentals under longstanding County interpretations.
Many—but not all—of the properties currently being evaluated for hotel rezoning originate from this list.
However:
Every project remains unique.
Every unit should still be evaluated individually.
What Buyers Should Understand
Today's buyers should evaluate far more than projected rental income.
Questions worth asking include:
- Is visitor accommodation currently permitted?
- What zoning applies today?
- Is the property part of the current rezoning process?
- How strong is HOA governance?
- Are reserve studies adequately funded?
- What insurance considerations exist?
- What property tax classifications apply?
- How resilient is long-term ownership?
Understanding these questions often creates better investment outcomes than focusing solely on projected cash flow.
Why Regulatory Clarity Matters
Regulatory certainty increasingly influences:
- Buyer confidence
- Financing
- Marketability
- Exit strategy
- Ownership flexibility
- Long-term value preservation
Properties with well-defined visitor accommodation rights often experience greater buyer confidence than those operating in uncertain regulatory environments.
This Is More Than a Vacation Rental Story
Although much attention has focused on short-term rentals, these discussions ultimately involve broader questions surrounding:
- Housing
- Community planning
- Tourism
- Infrastructure
- Land use
- Environmental stewardship
- Long-term economic sustainability
Understanding these larger issues helps buyers make more informed ownership decisions.
Frequently Asked Questions
Does Bill 88 eliminate vacation rentals?
No.
Bill 88 creates new zoning classifications rather than eliminating all vacation rentals.
Is every apartment-zoned property affected?
No.
Each property must be evaluated individually.
Does hotel zoning guarantee investment success?
No.
Zoning represents only one component of long-term ownership success.
Governance, insurance, financing, taxes, reserves, and operating costs remain equally important.
Should buyers still purchase vacation rental property?
Many continue to do so successfully.
The key is understanding the complete ownership environment before purchasing.
Final Thoughts
Maui's real estate market is unlike any other.
Successful ownership is shaped by far more than purchase price or market conditions. Governance, insurance, taxation, zoning, financing, community dynamics, and long-term planning all influence the ownership experience.
At Maui Homes Guide, our mission is to help buyers, sellers, owners, relocating residents, and investors understand not simply what is happening—but how to think about owning property on Maui with greater clarity, confidence, and long-term perspective.
Because informed ownership creates stronger decisions—and stronger decisions help preserve the qualities that make Maui such an extraordinary place to live, invest, and steward for future generations.
Continue Building Your Maui Ownership Intelligence
Every successful ownership decision is built on a complete understanding of the factors that influence long-term value. The guides below explore the key topics every buyer, owner, and investor should understand before purchasing property on Maui.
Understanding Maui's Short-Term Rental Environment
If you're evaluating a property for visitor accommodations, these guides explain how Maui's evolving regulatory framework affects ownership and investment strategy.
• Maui STR Investing After Bill 9: What Luxury Buyers & Investors Should Understand
• How Short-Term Rental Eligibility Actually Works on Maui
Evaluating the Long-Term Cost of Ownership
Ownership costs extend well beyond the purchase price. Understanding taxes, insurance, reserve funding, and community governance helps create stronger long-term decisions.
• HOA Governance on Maui: What Luxury Buyers & Owners Should Understand
• Maui Condo Reserve Studies: What Luxury Buyers & Owners Should Understand
• Insurance Considerations for Luxury Homeownership on Maui
• Maui Property Taxes: What Buyers & Owners Should Understand
Building a Complete Ownership Strategy
Whether you're purchasing a primary residence, second home, or investment property, these guides provide a broader perspective on luxury ownership and Maui's evolving real estate market.
• Buying Luxury Real Estate on Maui: What High-End Buyers Should Understand
• Maui Ownership Intelligence: Buying, Selling & Owning Luxury Real Estate on Mauihip, and informed decision-making.
Ready to Continue the Conversation?
Whether you're buying, selling, relocating, or evaluating a long-term ownership strategy, I'm always happy to help you better understand Maui's unique real estate landscape and ownership environment.
Anthony Freda
Hawaiʻi Real Estate Broker
Community Association Manager | Discovery Land Company