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Kaaawa, HI
Challenging To Investors
Local STR Agent
Local STR Agent

Short-term rentals (STRs)—commonly referred to as transient vacation units (TVUs) or bed & breakfast (B&B) units—are highly restricted on Oahu and, by extension, in Kaaawa. The City and County of Honolulu has determined that STRs are only permissible in resort-zoned areas and a limited number of apartment-zoned areas. In practice, that means STRs are prohibited in residential neighborhoods across Oahu (including Kaaawa), unless the property holds a pre-1986 “grandfathered” Nonconforming Use Certificate (NUC). No new NUCs are being issued.
Consequently, in Kaaawa (a residential area without resort zoning), nearly all whole-home short-term rentals are prohibited. A limited exception exists for bed & breakfast operations where the homeowner or permanent resident is present during the stay; however, even B&B use is restricted to owner-occupied properties and capped at two rooms with a maximum of two adult transient occupants per room.
The City’s position is that any rental for fewer than 30 consecutive days is an STR and must be registered and permitted. In 2024, a federal court blocked an attempt to raise the minimum rental period to 90 days, and as of the latest guidance, the enforceable minimum remains 30 consecutive days for most residential properties. This baseline applies to Kaaawa.
What this means for investors:
Kaaawa hosts earn a median $22,989/year with $170 ADR and 68% occupancy.
Top performers pull in $24,894+ per year.
See the full Kaaawa market breakdownGiven the prohibitions, most investors will not be able to start a new STR in Kaaawa. The lawful pathway is limited to acquiring and operating an existing, legally “grandfathered” property with an active NUC, or operating a compliant B&B where the owner resides on site.
Step-by-step approach for lawful operations:
Registration and renewal documents
Legal frameworks and guides
Operational definitions and criteria
City guidance
City & County of Honolulu
State of Hawaii
Department of Planning and Permitting (DPP)
Notes:
City and County of Honolulu – DPP STR permitting and resources
Additional background context
This guide reflects the City and County of Honolulu’s current framework and enforcement posture. Given evolving legislation (including SB 2919), investors should monitor ordinance updates and court outcomes and consult qualified local counsel or a licensed real estate professional before committing capital.
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Kaaawa is a small, unincorporated community and census-designated place on the windward (eastern) coast of Oahu, set within the Koolauloa District of Honolulu County, Hawaii. With a population of roughly 1,400 residents, it is a quiet, rural coastal village defined by its dramatic geography: the sheer green walls of the Ko'olau Mountain Range rise directly behind the town, while Kaaawa Bay and the broader Pacific stretch out in front. The community is best known as the home of Kualoa Ranch and as one of the most scenic stops along Oahu's windward shoreline. It lies approximately 30 miles north of Honolulu, a drive of about 45 to 60 minutes via the Pali Highway and Kamehameha Highway, depending on traffic through the Ko'olau Pali.
Just outside the heart of town, Kualoa Ranch sprawls across thousands of acres of valley, ridge, and shoreline, functioning as both a working cattle ranch and a private nature reserve. The property is famous as a filming location for productions ranging from Jurassic Park to 50 First Dates, and it offers visitors horseback rides, ATV tours, ziplines, ocean voyages, and jungle expeditions. Most of its tour departures begin within a few minutes of Kaaawa's residential core, making the ranch a natural anchor for any stay in the area.
A short drive north along Kamehameha Highway brings travelers to Laie and the Polynesian Cultural Center, one of Hawaii's most-visited paid attractions and a living-museum complex representing the cultures of Samoa, Fiji, Tahiti, Hawaii, Tonga, Aotearoa, and the Marquesas. The center sits roughly 15 to 20 minutes from Kaaawa and combines traditional villages, hands-on crafts, canoe pageants, and an evening luau and show. It draws visitors from across the island, particularly those on longer North Shore loops.
Just offshore from Kaaawa itself, the small, pointed islet of Mokolii, commonly called Chinaman's Hat, is one of the most photographed landmarks on the windward coast. The islet sits a short paddle or swim from the shore and provides a striking focal point for Kaaawa Beach Park, a local favorite for picnics, swimming, and small-craft launching. A few minutes to the south, Kahana Bay Beach Park offers a quieter crescent of sand backed by a freshwater stream that winds through a lush amphitheater of mountains.
Kaaawa's appeal for short-term rental owners lies in this combination of rural character, dramatic scenery, and proximity to major island draws. Travelers can base themselves in a small, slow-paced community with immediate access to Kualoa Ranch, within easy reach of the Polynesian Cultural Center and the North Shore beaches beyond, and still be back in Waikiki or downtown Honolulu in under an hour. For guests seeking the more cinematic, less developed side of Oahu, Kaaawa offers an experience that Honolulu proper simply cannot match.
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