Maui vacation rental ban Bill 9 Signed Into Law: What the Short-Term Rental Phase-Out Means for West Maui, South Maui, and the Rest of the Island

Maui just entered a new chapter in its long-running housing debate.

Mayor Richard Bissen has officially signed Bill 9 into law, marking one of the most consequential zoning and housing decisions Maui County has made in decades. The legislation directly targets short-term vacation rentals (STRs) operating in apartment-zoned districts, with the stated goal of restoring housing availability for local residents.

For decades, certain apartment-zoned buildings were allowed to operate legally as vacation rentals due to historical zoning exemptions dating back to the late 1980s. These units are often referred to as “Minatoya” units, named after the ordinance that originally allowed them.

Bill 9 removes that long-standing allowance and requires these apartment-zoned short-term rentals to cease operating after a defined amortization period, returning them to long-term residential use unless future zoning changes are approved.

The County’s stated intent is to increase long-term housing supply without new construction, particularly in the wake of the Maui wildfires and an ongoing housing shortage.

The timeline: West Maui vs. the rest of Maui County

This is one of the most important — and most misunderstood — parts of Bill 9.

West Maui - 3 Years

Short-term rental use may continue through December 31, 2028
Short-term rentals must cease beginning January 1, 2029

This effectively gives West Maui roughly three years before the law takes full effect.

All other areas of Maui County (including South Maui) - 5 Years

Short-term rental use may continue through December 31, 2030
Short-term rentals must cease beginning January 1, 2031

This gives the rest of the county roughly five years before enforcement begins.

The County has stated that this staggered timeline reflects the unique circumstances and recovery challenges in West Maui following the Lahaina fires.

Will owners be notified?

Yes.

Bill 9 requires the County to formally notify property owners whose units are subject to the phase-out. Notices must be mailed to the owner’s address on record for property tax purposes, and public notices must also be published.

In other words, affected owners are not expected to “find out by accident.”

Are there exemptions under Bill 9?

This is where a lot of confusion exists.

What Bill 9 does NOT do

Bill 9 does not include any Temporary Investigative Group (TIG) carveouts
It does not automatically rezone units into new hotel categories
It does not guarantee a future zoning pathway for STR continuation

Any TIG-recommended hotel zoning districts (often referred to as H-3 or H-4) would require separate County Council action in the future.

What Bill 9 DOES exempt

While there is no TIG carveout in the bill itself, Bill 9 does include specific exemptions, including:

Legally existing timeshare units
Uses operating under an approved variance
Uses otherwise permitted by law

So while the bill broadly phases out apartment-zoned STRs, it does not apply to every form of visitor accommodation.

How many units are affected?

County estimates and public statements surrounding Bill 9 suggest that more than 6,000 apartment-zoned short-term rental units are impacted countywide.

At the same time, Maui will still retain:

Thousands of hotel rooms (hence the real reason for the Bill - less competition for Hotels)
Thousands of legally permitted vacation rentals in other zoning districts
More than 2,400 timeshares and bed-and-breakfast operations

Supporters argue that this approach rebalances housing without eliminating tourism. Critics argue it does not create more affordable housing and will negatively impact Maui’s economy, tourism dollars and real estate values.

What this means for the Maui real estate market

For local residents

The false intent of Bill 9 is that it will push more housing back into the long-term rental and ownership pool, even though none of the units affected match the size needs of local households.

For short-term rental owners

Owners of affected properties now face a defined timeline. Over the next several years, many will evaluate:

Converting to long-term rental use
Selling before the amortization deadline
Monitoring future zoning proposals tied to the TIG recommendations

For buyers and investors

Bill 9 introduces a new layer of regulatory risk for apartment-zoned properties previously valued as STR investments. Expect buyers, lenders, and appraisers to factor the phase-out timeline into pricing and underwriting decisions.

What happens next

Bill 9 is not the end of the story — it’s the beginning of a new phase called Maui County wasting tax payers money with the onslaught of incomig lawsuits.

Key developments to watch include:

Legal challenges from AOAO's representing property owners and industry groups
Future County Council action on TIG-recommended exemption carve out's
Enforcement policies and tax classification changes as units transition away from STR use

How aggressively the County enforces the law — and whether alternative zoning pathways are adopted — will heavily influence the real-world impact of Bill 9.

Read the full bill

If you want to review the actual language of the law, you can read the full text of Bill 9 (CD1, FD1)

Final takeaway

Bill 9 fundamentally changes the future of short-term rentals in apartment-zoned districts on Maui.

With a three-year timeline for West Maui and a five-year timeline for the rest of the county, the law sets clear expectations — even as major questions remain about enforcement, legal challenges, and future zoning changes.

Whether you support it or oppose it, Bill 9 is now the law — and its ripple effects will shape Maui’s housing, tourism, and real estate markets for years to come.

About Eric West

I’m Eric West, a Maui real estate professional working alongside my family team with over 15+ years of full-time Maui real estate experience. We specialize in helping buyers and sellers navigate complex zoning issues, resort properties, long-term housing, and major regulatory changes like Bill 9. I also have the most watched YouTube channel for Real Estate in Hawaii. Check It Out https://www.youtube.com/@hawaiirealestateorg

Our approach is simple:
clear information, no pressure, and local expertise you can trust.

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Posted by Eric West R(B) on December 16th, 2025

Hawaii Real Estate News Blog