Executive Overview: Are STRs Allowed in Mauna Loa?

Short-term rentals are currently prohibited in Mauna Loa, Hawaii as of October 8, 2025. The Maui County Council has implemented a complete moratorium on new short-term rental home (STRH) permits for the Molokai Community Plan area, which includes Mauna Loa. This represents a significant regulatory shift that renders new STR operations infeasible in this market.

While historical data shows that some STRH permits were previously issued for Molokai properties (including several in Mauna Loa), no new permits are currently being processed or issued as of the latest county records from October 2025. Existing operators may continue under grandfathered status, but the pathway for new entrants has been effectively closed.

How to Start a Short-Term Rental Business in This Market

Starting a new STR business in Mauna Loa is not currently viable. The complete moratorium on new permits means that prospective investors cannot legally establish new short-term rental operations in this location.

Alternative Approaches for Investors:

1. Monitor Regulatory Changes: Stay informed about potential policy reversals or amendments to the moratorium through the Maui County Planning Department.

2. Consider Surrounding Areas: Explore nearby Molokai locations or other Maui County islands where STR operations may still be permitted.

3. Long-Term Rental Focus: Consider converting any acquired properties to long-term residential rentals, which remain permissible under zoning regulations.

4. Existing Property Acquisition: While extremely limited, investigate whether any existing STRH permits might be transferable (though this is highly unlikely given the current regulatory environment).

Required Documents, Permits, Licenses, and Guidelines

Current Requirements (Moratorium in Effect):

• No new STRH permits are being issued for Mauna Loa as of October 2025
• No application processing is occurring for new STRH permits in the Molokai Community Plan area

Historical Permit Requirements (No Longer Applicable):

When permits were previously available, operators needed:

1. Short-Term Rental Home Permit (STRH)
2. Designated Manager Assignment
3. Onsite Parking Requirements (no street parking permitted)
4. Advertising Compliance (permit number inclusion required)
5. Maximum Capacity: Up to 6 bedrooms across 2 licensed STRH dwellings

State-Level Requirements (Always Applicable):

Regardless of local permits, all STR operations must comply with:

1. Hawaii General Excise Tax (GET): 4% on gross rental income
2. Transient Accommodations Tax (TAT): 10.25% on stays under 180 days
3. State Tax Registration: Required for GET and TAT collection and remittance

Specific Regulations for Short-Term Rentals

County Level (Maui County):

• Complete moratorium on new STRH permits for Molokai Community Plan area
• No processing of pending applications as of October 2025
• Existing permits may continue under grandfathered status
• Enforcement actions are actively pursued against unlicensed operations

State Level (Hawaii):

• Maximum stay definition: Short-term rentals defined as rentals under 180 consecutive days
• Tax obligations: GET (4%) + TAT (10.25%) = 14.25% total tax burden
• Registration requirements: State tax licenses mandatory
• Compliance monitoring: Regular filing and remittance required

Zoning Compliance:

• Nonconforming use provisions may apply to historically permitted properties
• Apartment districts have additional restrictions under recent legislation (Bill 9)
• Hotel and resort commercial districts maintain different regulatory frameworks

Enforcement and Penalties

The Maui County enforcement framework includes:

1. Civil Monetary Fines:

   • Initial violation: $20,000
   • Daily continuing violation: $10,000 per day

2. Active Monitoring:

   • Regular enforcement sweeps
   • Citizen complaint investigations
   • Advertising platform monitoring

3. License Revocation:

   • Permit conditions violations can result in permit revocation
   • No new permits available to replace revoked permits

Contact Information

Primary Regulatory Authority:

Maui County Planning Department

• Website: www.mauicounty.gov
• Phone: (808) 270-7735
• Address: 2200 Main Street, Suite 315, Wailuku, HI 96793
• Email: planning@mauicounty.gov

Tax Registration:

Hawaii Department of Taxation

• Website: tax.hawaii.gov
• Phone: (808) 587-4242
• STR Registration: Required for GET and TAT collection

Enforcement Inquiries:

Maui County Code Enforcement

• Phone: (808) 270-7563
• Email: code.enforcement@mauicounty.gov

Source Documentation

1. Maui County STRH Permit Database: www.mauicounty.gov/DocumentCenter/View/14762/Approved-Short-Term-Rental-Homes-List
2. Maui County Council Bill 9 (2025): www.mauicounty.us/bill-9-2025-overview/
3. KITV News Coverage: www.kitv.com/news/politics/maui-county-council-approves-bill-to-ban-short-term-rentals/article_99480c55-fb80-47d3-b6a4-a622099d0534.html
4. Maui County Planning Department Memorandum: www.mauicounty.gov/DocumentCenter/View/122051/060920_Agenda-Item-B1_Council-Reso-2027_STRH-permits_memorandum
5. Hawaii State Tax Requirements: www.lodgecompliance.com/states/hawaii

Investment Risk Assessment

High Risk: The complete moratorium on new STRH permits in Mauna Loa represents an absolute barrier to new STR investment. Current regulations prioritize long-term housing availability over short-term rental tourism, making this market unsuitable for new STR ventures. Existing property values may be negatively impacted by the inability to generate short-term rental income, creating potential investment challenges for any related property acquisitions.