Short-Term Rental (STR) Investor’s Guide to Makawao, HI (Maui County)

Executive overview

• Short-term rentals are explicitly allowed in Makawao, but only under defined conditions. The legal pathway depends on your zoning and property type.
• Apartments and hotels in Makawao that are on Maui County’s “Minatoya/apartment‑zoned STR list” may operate as STRs (no separate STRH/B&B permit required), subject to strict compliance, GET/TAT collection, and advertising rules.
• Single-family homes, ohana, and other residential units in Makawao that are not in apartment or hotel zones may operate as STRs only if they obtain a County-issued Short-Term Rental Home (STRH) permit or a Bed & Breakfast (B&B) permit, each with caps, eligibility rules, and operating standards.
• A separate County moratorium (Ordinance 5316) and proposed Bill 9 (2025) may affect apartment‑zoned STRs island-wide. Investors must track these developments closely.

Important caveat on pending legislation

• As of mid‑2025, a bill (commonly referred to as “Bill 9”) advancing in Maui County Council proposes phasing out STR rights for apartment‑zoned properties in two stages: West Maui by 2028 and the rest of Maui by 2030. The bill is not yet law and may be amended; its legal enforceability is being challenged. Treat this as a material regulatory risk. Source: Maui Property blog (July 2025).

1. Are STRs allowed in Makawao? Short answer: Yes, subject to Maui County regulations. There are no city‑specific Makawao rules; all STR rules are county-level. The path depends on zoning and property type:

• Apartment-zoned condos (on the County’s Minatoya/apartment‑zoned STR list): Allowed to operate as STRs with no separate STRH/B&B permit, provided you meet all conditions under MCC 19.12.020 (see “Regulations” below). Source: Maui County STRH/TVR documents and Maui Elite Property.
• Hotel-zoned properties: Allowed to operate as STRs without STRH/B&B permits. Source: Maui County.
• Residential single‑family or ohana outside apartment/hotel zones: Only allowed with a County STRH or B&B permit. Source: Maui County.

County-stated caps by Community Plan Region for STRHs (single‑family homes/ohana):

• Makawao‑Pukalani‑Kula Community Plan Region: cap of 15 STRH permits; 9 currently approved as of 10/08/2025. This is the sole cap relevant to Makawao. Source: County “Approved Short‑Term Rental Homes List.”

2. How to start a short‑term rental business in Makawao Step 1 — Determine your zoning and eligibility

• Confirm whether your parcel is zoned A‑1/A‑2 (apartment), H (hotel), or residential/agricultural (R‑1, R‑2, R‑3, A‑1 Residential, etc.). Hotel and the County’s listed apartment‑zoned properties can operate as STRs without an STRH/B&B permit. Residential/agricultural zoning requires an STRH or B&B permit.
• Confirm the Minatoya/apartment‑zoned list status with Maui County Planning if the property is apartment‑zoned. Source: Maui County STR guidance.

Step 2 — Choose your permitting pathway

• If hotel‑zoned or on the apartment‑zoned STR list: No STRH/B&B permit required. Continue to licensing/tax compliance below.
• If single‑family or ohana in residential/agricultural zoning: Apply for an STRH or B&B permit via the County’s MAPPS portal (CP STRH application link below). STRH/B&B are community‑plan‑limited and carry owner‑occupancy, bedroom, and manager requirements.

Step 3 — Licensing and taxes

• Obtain Hawaii General Excise Tax (GET) license ( Hawai‘i Department of Taxation).
• Obtain Transient Accommodations Tax (TAT) license ( Hawai‘i Department of Taxation).
• Register for Maui County Transient Accommodations Tax (MCTAT) if required by the County.
• Set up reporting/collection for:
  • GET: 4.5% (4% state + 0.5% Maui County).
  • TAT: 13.25% (10.25% state + 3% Maui County).
• Maintain current tax standing (no outstanding County/State fines/penalties). Source: Maui County STR guidance and STR update (May 2024).

Step 4 — On‑island contact and property management

• If you do not reside on Maui, designate an on‑island contact/manager who can be reached 24/7 and arrive onsite within one hour for emergencies. This is a STRH requirement and widely recommended for all STRs. Source: Maui County.
• HOA rules: Comply with association rental and occupancy rules. Review governing documents during escrow. Source: Maui Elite Property.

Step 5 — Advertising and compliance

• All online advertisements must include:
  • The property’s registration number (TMK without punctuation).
  • GET/TAT license numbers.
  • On‑island contact information (name and phone). Source: Maui County and Maui Elite Property.

3. Required documents, permits, licenses, and guidelines Permits (when required)

• STRH (Short‑Term Rental Home) permit or B&B permit for single‑family/ohana in residential/agricultural zoning.
  • Application: Maui County MAPPS “CP STRH – Short Term Rental Home.” Source: Maui County STRH application.
  • Owner eligibility: Typically requires 5‑year ownership, community plan caps apply.
  • Operating standards: Onsite parking only, designated on‑island manager available 24/7 and able to respond onsite within 1 hour, advertising must display permit number.
  • Bedrooms: Up to 6 bedrooms total across up to 2 licensed STRH dwellings per permit.
  • County cap: 15 STRH permits in Makawao‑Pukalani‑Kula region (9 approved as of 10/08/2025).

Licensing

• GET license: Hawai‘i Department of Taxation (apply online). Source: State of Hawai‘i DoTAX.
• TAT license: Hawai‘i Department of Taxation (apply online). Source: State of Hawai‘i DoTAX.
• MCTAT registration: Maui County registration (as required).
• Property tax considerations: STR units carry a different classification with higher rates.

Compliance for apartment‑zoned STRs (Minatoya list pathway)

• Per MCC 19.12.020, apartment‑zoned STRs must meet strict criteria, including:
  • Lawful existence of TVR use (pre‑2020) and no increase in room count since Jan 7, 2022.
  • Maintain GET/TAT licenses and be current on State/County taxes/fines.
  • The County maintains a list of eligible properties for informational purposes only; inclusion is not a guarantee of rights.
  • Advertisements must display the registration number (TMK, no punctuation).
• Source: Maui County STR guidance and Maui Elite Property (citing MCC 19.12.020).

Advertising requirements

• Include GET/TAT license numbers and on‑island contact information in all listings.
• Include TMK‑based registration number for apartment‑zoned STRs.
• Source: Maui County and Maui Elite Property.

4. Specific regulations (county/state) that apply in Makawao County caps and regional limits

• STRH permits in Makawao‑Pukalani‑Kula Community Plan Region: 15 maximum; 9 issued as of 10/08/2025 (per County STRH list). Source: County list.

Zoning‑based allowances and restrictions

• Apartment‑zoned STRs: Allowed only if the property is on the County’s Minatoya/apartment‑zoned STR list or otherwise qualifies under MCC 19.12.020. No increase in allowed rooms beyond Jan 7, 2022. Source: Maui County.
• Hotel‑zoned STRs: Allowed without separate STRH/B&B permits. Source: Maui County.
• Residential/agricultural zoning: STRs require STRH or B&B permits. Source: Maui County.

Operating standards for STRHs

• Designated on‑island manager available 24/7; must be able to arrive onsite within 1 hour.
• All parking must be onsite; no street parking.
• Advertising must include the permit number.
• Up to 6 bedrooms total across up to 2 licensed STRH dwellings.
• Source: Maui County STRH guidance.

Taxes and reporting

• GET: 4.5% (4% state + 0.5% Maui County).
• TAT: 13.25% (10.25% state + 3% Maui County).
• Must be current on all State and County taxes and penalties. Source: Maui Elite Property.

Advertising and registration requirements

• Online listings must display:
  • Registration ID (TMK without punctuation) for apartment‑zoned STRs.
  • GET/TAT license numbers.
  • On‑island contact info (24/7 reachability).
• Source: Maui County and Maui Elite Property.

Moratorium and proposed changes

• Two‑year moratorium on new visitor accommodations (Ordinance 5316, effective Jan 7, 2022). The moratorium preserves existing rights for apartment‑zoned STRs that were legal before the moratorium. Source: Maui County STR update (May 2024).
• Bill 9 (2025): Proposes to phase out STR rights for apartment‑zoned units, with West Maui targeted for 2028 and the rest of Maui by 2030. Not yet adopted; expect legal challenges. Source: Maui Property blog.

5. Local authority contacts and official resources Planning Administration (Maui County)

• Phone: (808) 270‑7735
• Physical Address: 2200 Main Street, One Main Plaza Bldg, Suite 619, Wailuku, HI 96793
• Mapps application page for STRH permits: see Reference 1 link below.
• Planning Directory: see Reference 2 link below.
• County’s “Approved Short‑Term Rental Homes List” (regional caps and counts): see Reference 5 link below.

Transient Accommodations Tax and GET

• State of Hawai‘i Department of Taxation (GET/TAT licensing and reporting):
  • Website: tax.hawaii.gov/geninfo/get/ (see Reference 6 link below).

Reference links (official and source pages)

1. Maui County Short‑Term Rental Home (STRH) Application and overview: www.mauicounty.gov/1874/Short-Term-Rental-Home-STRH-Application
2. County of Maui Planning Directory (contacts): www.mauicounty.gov/directory.aspx?did=154
3. Maui Property blog: “Maui Vacation Rental Ban Advances” (Bill 9): www.mauiproperty.com/blog/maui-vacation-rental-ban-advances/
4. Maui Elite Property blog: “Short-Term Rental Rules on Maui in 2025”: www.mauieliteproperty.com/blog/short-term-rental-rules-on-maui-in-2025.html
5. Maui County “Approved Short-Term Rental Homes List” (through 10/08/2025): www.mauicounty.gov/DocumentCenter/View/14762/Approved-Short-Term-Rental-Homes-List?bidId=
6. Hawaii Department of Taxation: General Excise Tax (GET) license info: tax.hawaii.gov/geninfo/get/
7. LuxuryRealEstateMaui blog: “Maui Short-Term Rental Update: May 4, 2024”: www.luxuryrealestatemaui.com/blog/maui-short-term-rental-update-may-4-2024.html

Key takeaways for Makawao investors

• For apartment‑zoned condos on the Minatoya/apartment‑zoned STR list: STR operation is permitted without an STRH/B&B, provided you meet MCC 19.12.020 criteria, collect GET/TAT, list registration numbers, and maintain an on‑island contact. Ongoing risk: Bill 9 may eliminate these rights by 2028 (West Maui) and 2030 (rest of Maui).
• For hotel‑zoned units: STRs are permitted. These are not affected by Bill 9 under current proposals.
• For single‑family/ohana in residential/agricultural zones: STR operation requires an STRH or B&B permit, is capped by community plan (15 in Makawao‑Pukalani‑Kula), and must adhere to parking, manager, and advertising rules.
• Always verify zoning and listing status with Maui County Planning before acquisition. This is a dynamic regulatory environment; monitor Ordinance 5316 implementation and any final Council action on Bill 9.