Maui Advances Hotel Zoning for 2,000 STRs as Federal Court Upholds Hood River Ban

Local governments and courts are restricting short-term rentals through zoning phase-outs and federal litigation. The Maui County Council passed resolutions to transition over 2,000 apartment-zoned rentals into hotel districts to exempt them from upcoming bans, while a federal court separately upheld Hood River's short-term rental policy.

How is Maui changing its short-term rental zoning?

On July 24, 2026, the Maui County Council passed two resolutions to transition over 2,000 apartment-zoned short-term rentals into new hotel zoning. According to Luxury Real Estate Maui, the council voted 7-1 in favor of Resolutions 26-110 and 26-111. These resolutions refer specific categories of apartment-zoned properties to the Planning Commission for reclassification into the county’s H3 and H4 hotel districts. The county established these H-3 and H-4 Hotel Districts through Ordinance 6008, which became effective on June 22, 2026. This reclassification requires amending the Community Plans to grant a Hotel land use designation within the Kihei-Makena Community Plan Area and a Resort/Hotel land use designation within the West Maui Community Plan Area.

What happens to properties that do not get rezoned?

Properties that fail to secure the new hotel zoning face a complete phase-out of short-term rental operations. Luxury Real Estate Maui reported that these properties fall under Ordinance 5909, also known as Bill 9. This ordinance mandates the phase-out of short-term rentals in A1 and A2 apartment districts in West Maui on January 1, 2029. The phase-out extends across the rest of Maui County on January 1, 2030. After those dates, property uses are strictly limited to long-term rentals lasting six months or longer, owner-occupied units, or non-owner-occupied second homes.

Which properties qualify for the new hotel designation under Resolution 26-110?

Resolution 26-110 targets properties with a mix of timeshare and transient vacation rental uses, leasehold properties, and properties with fewer than five units. The ordinance notes that leasehold properties are difficult to finance and plan for as long-term housing, and properties with fewer than five units possess property values that the average potential homeowner finds difficult to afford. Properties submitted for this zoning change include Hale Mahina Beach Resort, Hale Ono Loa, Hono Kai, Indo Lotus Beach Cottage, Kaanapali Royal, Kahana Outrigger, Kapu Townhouse, Kuleana, Lauloa Maalaea, Maalaea Kai, Maui Hill, Maui Sands II, Maui Sunset, Milowai-Ma'alaea, My Waii Beach Cottage, Paki Maui I, II, III, Villa Moana, Waiohuli Beach Duplex, and additional unnamed properties in Kihei.

How does Resolution 26-111 differ in its property criteria?

Resolution 26-111 specifically addresses apartment district properties with transient vacation rental uses that operate like hotels. As detailed by Luxury Real Estate Maui, this includes properties providing front-desk or similar services, or employing groundskeepers and other staff. The properties submitted under this resolution are Maui Eldorado, The Palms at Wailea I, Papakea, Wailea Ekahi I, II, III, and Wailea Ekolu.

How are courts handling short-term rental policies elsewhere?

Courts are ruling in favor of local municipalities enforcing short-term rental restrictions. Columbia Gorge News reported that a federal court upheld Hood River's short-term rental policy. This legal decision represents a separate development from the legislative actions taking place in Hawaii, demonstrating another avenue local governments use to restrict transient vacation rentals.

What comes next for Maui's zoning regulations?

The Maui County Council anticipates introducing the next round of council-initiated zoning resolutions in the coming weeks. Based on comments in prior sessions of the HLU committee, future resolutions will address properties located within Sea Level Rise Exposure Area (SLR-XA) zones and properties identified under the committee's affordability criteria. The HLU Committee has not released the specific criteria or methodology it will use to determine which properties qualify under the affordability category.