Papaaloa, HI

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Papaaloa short-term rental market based on reliable data.

Listings

51 / 90

Reliable / Active

Cap Rate

6%

Middle-Earners Gross Yield

Revenue

$37,199

Middle-Earners Revenue

Occupancy

61%

Middle-Earners Occupancy

Home Value

$599,655

Median Home Sale Price

Top Earners

$99,349

Top-Earners Revenue

Papaaloa

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Papaaloa.

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C

Challenging to Investors

Papaaloa Regulations

Allowed in select V/CG/CV and resort/VDAs but prohibited in standard residential zones; state/county permitting (TAT/GET/STR permit) plus $1M insurance and annual renewals create moderate-to-high compliance cost. The Jan 1, 2025 rule that only Hawaii County residents can operate unhosted STRs limits out‑of‑state investment and requires on‑site hosting, increasing risk; steep penalties for noncompliance further dampen investor friendliness.

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About Papaaloa

Papaaloa is a small rural community nestled along the Hamakua Coast on the northeastern shore of the Big Island of Hawaii, situated in Hawaii County. With only a few hundred residents scattered across its lush, winding stretches, the area carries the quiet, unhurried feel of old plantation-era Hawaii, where sugarcane fields once dominated the landscape and where the jungle now spills almost to the edge of the Pacific cliffs. Papaaloa is best known as a scenic stopover along the Hamakua Heritage Corridor drive and as a gateway to some of the Big Island's most celebrated natural attractions, including towering waterfalls and dramatic coastal valleys. It lies roughly 15 to 20 miles north of Hilo, the island's largest town and main population center, typically reached by a 30-to-40-minute drive along the Belt Road (Highway 19).

Just outside Papaaloa, the Hawaii Tropical Botanical Garden occupies a secluded valley opening onto Onomea Bay, where visitors can wander through more than 2,000 species of tropical plants set among streams, bamboo groves, and ocean overlooks. The garden is essentially in the neighborhood of Papaaloa, often only a few minutes' drive away, and it consistently ranks as one of the Big Island's most photogenic horticultural destinations. Further enriching the area's appeal, ʻAkaka Falls State Park is a short drive south of Papaaloa, roughly 20 to 25 minutes by car. The park features a paved loop trail that leads to the spectacular 442-foot Akaka Falls, one of Hawaii's most photographed waterfalls, plunging into a fern-lined gorge.

About 35 to 40 minutes north of Papaaloa, the Waipiʻo Valley lookout offers a breathtaking vantage over the "Valley of the Kings," a sacred and historically significant site once home to Hawaiian royalty and taro farmers. From the overlook, visitors gaze down sheer cliffs to a black-sand beach, sweeping farmland, and towering back walls, with hiking and guided tours available for those who venture further. Closer to Papaaloa, the historic plantation town of Honokaʻa sits roughly 15 to 20 minutes to the north and provides a charming small-town complement, with its wooden storefronts, farmers' markets, and easy access to the surrounding ranch and forest country.

Papaaloa offers an appealing blend of seclusion, natural beauty, and accessibility that makes it a compelling base for a short-term rental. Travelers who stay here can enjoy a peaceful, off-the-beaten-path atmosphere while remaining within easy reach of the Hamakua Coast's signature waterfalls, botanical gardens, and valley vistas, as well as the broader amenities of Hilo to the south. The combination of authentic small-community character and proximity to some of the Big Island's most iconic landscapes gives the area a distinctive appeal for visitors seeking a quieter, more immersive Hawaiian experience.

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