If you’re looking to buy a condo on Maui that allows legal vacation rentals in 2025, or you already own one, this guide gives you the most up-to-date, no-nonsense breakdown. The landscape has changed dramatically after the Temporary Investigative Group (TIG) Report, delivered on October 14, 2025 — and it directly affects which condos will stay legal for short-term rentals moving forward.
This is the most current and complete explanation of what’s actually happening.
1. Why Maui’s vacation-rental rules are changing
Three major forces brought us here:
• Maui’s housing crisis was already serious — the 2023 Lāhainā fires pushed it into emergency territory.
• Bill 9 was introduced to phase out short-term rentals in Apartment-zoned (A-1/A-2) districts.
• The County formed the TIG to figure out which properties should stay eligible and how to manage the transition without destroying Maui’s visitor economy.
The TIG’s recommendations are now the most important updates for buyers and owners.
2. What the TIG Report actually changed
Here are the key takeaways:
• New zoning categories: H-3 and H-4 Hotel Districts.
These would allow certain apartment-zoned condos to KEEP their vacation-rental eligibility if rezoned.
• A list of specific condos (“Exhibit 2”) flagged as candidates for rezoning.
If your complex is on this list, there is a suggested path to remain legal.
• Bill 9 isn’t changed — it’s supplemented.
The TIG didn’t rewrite Bill 9. Instead, they propose passing Bill 9 as is, then rezoning eligible complexes through a separate process.
• Nothing is final yet.
Full rezoning could take 12–18 months, and the political environment is still heated.
Translation:
Some condos will likely be saved. Some may not. The window for clarity is still opening.
3. The three “tiers” of Maui condos right now
The market is effectively split into three categories:
Tier A — Already Resort/Hotel Zoned (Safest)
These properties already have the correct zoning for legal short-term rentals, regardless of Bill 9.
Examples include many resort properties in Kaanapali, Kapalua, and Wailea.
Tier B — Apartment Zoned, but Listed on TIG Exhibit 2 (Likely to Remain Legal)
These have a proposed path to move into the new H-3/H-4 hotel zoning.
These are your most important properties to watch.
Tier C — Apartment Zoned, NOT in Exhibit 2 (High Risk)
If a complex is NOT listed, it is at risk of losing STR legality once Bill 9 passes — unless individually rezoned later.
This tier may see value adjustments if STR use is phased out.
4. What every buyer and owner MUST verify
Do not rely on what you “heard.” Verify these items:
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Actual zoning: Hotel, Resort, or Apartment (A-1/A-2).
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Whether the complex is included in the TIG Exhibit 2 list.
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Whether rezoning hearings, amendments, or community plan changes are scheduled.
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Whether the HOA currently allows short-term rentals.
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Phase-out timelines under Bill 9 if the property stays apartment-zoned.
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Your backup plan if STR use ends: rent long-term, sell, or reposition.
This due diligence will protect you from expensive surprises.
5. Investment realities you must face
Here’s the blunt truth:
• A condo with no legal short-term rental path will lose value relative to those with STR eligibility.
• Anyone buying for vacation-rental income must now build regulatory risk into the numbers.
• Even “saved” condos may face additional rules or caps in the future.
• For rezoned H-3/H-4 condos, there is potential upside: fewer competing STR units may mean stronger occupancy and revenue.
We are entering an era where zoning clarity matters more than views, amenities, or even location.
6. What’s next? The 2025–2026 timeline
Here’s what to expect:
• Bill 9 still needs full Council approval and Mayor’s signature.
• H-3 and H-4 zoning bills must be drafted, debated, and passed.
• Apartment-zoned complexes must go through a full rezoning process.
• Final clarity may not arrive until late 2026.
Until then, most STRs continue “business as usual,” but that window is not guaranteed.
7. Maui areas where this matters most
South Maui — Kihei & Wailea
Many popular vacation-rental condos fall into either safe zones or the potential rezoning list.
West Maui — Lahaina, Kaanapali, Napili, Kapalua
West Maui has the highest concentration of visitor-oriented inventories — and the most political pressure.
North Shore & Upcountry
Few condos here, but zoning changes still apply to the limited inventory.
8. Final Thoughts — What you should do right now
Here’s the straight truth:
If you’re buying or holding a condo and you rely on vacation-rental income, you have to take these zoning changes seriously. Don’t assume past use guarantees future legality. It doesn’t.
If your condo is:
• Tier A — You’re safe.
• Tier B — You’re “likely safe,” but monitor rezoning closely.
• Tier C — You need a realistic plan for long-term use or renegotiated pricing.
Strong due diligence now will protect your investment later.
If you want a personalized breakdown for a specific condo, access zoning maps, or compare income projections across STR vs. long-term rental scenarios, I can walk you through all of it.
Eric West | Real Broker, LLC
West Maui Team — Your trusted resource for Maui real estate.
(808) 298-2030 | hawaiisbest1@gmail.com
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