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Paauilo, HI

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STR Regulations for Paauilo, Hawaii

Note: This guide is for educational purposes only and does not constitute legal advice. Always confirm requirements and current rules with the County Planning Department before proceeding.

Overview: Are STRs allowed in Paauilo?

Yes, short-term rentals are allowed in Paauilo under Hawaii County’s short-term vacation rental (STVR) framework. However, eligibility depends on zoning, the property’s legal status (e.g., nonconforming use), and whether you intend to operate a hosted or unhosted rental. Under current rules, unhosted STRs must be permitted and registered; hosted STRs are allowed but not yet fully regulated by the county, and their treatment can vary by zoning. Unhosted rentals are subject to stricter operation standards and higher fees.

As of the county’s ongoing “TAR” (Transient Accommodation Rental) proposal, unhosted rentals are allowed only in specific zoning districts: Resort (V), General Commercial (CG), Neighborhood Commercial (CN), Downtown Hilo Commercial (CDH), Residential-Multiple (RM), and residential districts situated within general plan resort and resort node areas. Properties outside these zones that have an existing nonconforming use certificate may continue to operate but cannot be newly permitted. Operational rules include response-time obligations, guest-cap limits tied to parking, quiet hours, and escalating fines.

Paauilo is in the Hāmākua area (Hamakua CDP). Confirm zoning and permitted uses through the county planning department’s resources and zoning maps before acquiring or permitting a property.

Source: Hawaii County Planning – Short-Term Vacation Rentals (STVR) resources page. See also the Hawaii County Zoning Code.

What do Airbnb hosts actually earn in Paauilo?

Paauilo hosts earn a median $24,994/year with $142 ADR and 57% occupancy.

Top performers pull in $29,676+ per year.

See the full Paauilo market breakdown

How to start a short-term rental business in Paauilo

Step 1: Confirm zoning and use eligibility

  • Determine if your property is zoned Resort (V), General Commercial (CG), Neighborhood Commercial (CN), Downtown Hilo Commercial (CDH), or Residential-Multiple (RM). In the TAR proposal, only these districts allow unhosted rentals.
  • If outside those districts, check whether the property holds a nonconforming use certificate. If it does, you may continue to operate; otherwise, new unhosted permits are not available.
  • If you plan a hosted rental, verify whether STR use is permitted in your zoning. Hosted STRs are not fully regulated yet, but they are still subject to zoning rules and county enforcement for code violations.

Action tools:

  • Hawaii County Zone Maps (link in References)
  • Request zoning records via “Request a Public Record (RPR)” from the planning department
  • Planning Department “Service Finder” for zoning confirmations

Step 2: Choose your operating model

  • Hosted STR: An owner/operator lives on-site or is present during guest stays. Hosted STRs remain unregulated by the county’s STVR framework as of the time of the sources, but zoning and neighbor-impact rules still apply.
  • Unhosted STR: No host on-site or staying with guests. Under the TAR proposal, unhosted rentals must register and comply with operation standards.

Step 3: Apply for registration/permit

  • If operating an unhosted rental, submit a registration application to the Hawaii County Planning Department. Existing unhosted STVRs that were previously registered do not need the initial registration fee but must renew annually.
  • If you already hold a nonconforming use certificate outside permitted zones, you can continue operations under that certificate and must renew annually.
  • If you are unsure whether your property falls under current STVR/TAR rules (e.g., hosted use on residential land), confirm eligibility via the planning department’s STVR resources or contact them directly.

Process notes from county materials:

  • “Apply for a Short-Term Vacation Rental permit” and “Register a Short-Term Vacation Rental” links are provided by the planning department (see References).

Step 4: Prepare required documents

County application requirements for unhosted STRs (as detailed in Draft 5 of the TAR proposal and the county’s STVR resources) typically include:

  • Property Tax Map Key (TMK) number and full address
  • Owner and operator contact information (including real estate licensure if applicable)
  • Site drawing showing structures and the required amount of off-street parking
  • Floor plans showing rented rooms and all emergency exits

Additional practical considerations:

  • Confirm wastewater (septic/cesspool) capacity and compliance with State Department of Health standards
  • Verify potable water supply (separate meter or compliant catchment)
  • Review HOA/Condo rules and CC&Rs for any STR prohibitions or restrictions

Step 5: Fees and renewals

As proposed in Draft 5:

  • Initial Registration (unhosted TAR): $1,000
  • Annual Registration Renewal (unhosted TAR): $250
  • Nonconforming Use Certificate (if applicable): $500
  • Annual Nonconforming Use Certificate Renewal: $500

Hosting registration may differ and is not detailed in the provided sources; confirm with the planning department.

Step 6: Compliance and operations (unhosted STR)

Key operation standards under the TAR proposal:

  • Respond to guest or neighbor contact attempts within one hour
  • Be physically available at the property when necessary
  • Limit gatherings to double the number of registered guests
  • Cap overnight accommodations based on off-street parking shown on the permit
  • Observe quiet hours from 8:00 PM to 7:00 AM

Violations trigger escalating fines: $2,500, then $5,000, then $10,000 per incident.

Source: Island Land Company blog summarizing Draft 5 (see References).

Required documents, permits, licenses, and guidelines

  • STVR/TAR registration (for unhosted STR)
  • Nonconforming use certificate (where applicable)
  • Site drawing with parking
  • Floor plans showing rooms and exits
  • Owner/operator contact details and licensure, if applicable
  • Confirmation of wastewater (septic/cesspool) compliance (see DOH resources)
  • Potable water compliance (meter or catchment)
  • Zoning verification and property records (TMK)
  • Compliance with HOA/CC&Rs and building/fire/life-safety requirements

Guidance and resources:

  • Hawaii County Planning Department STVR/TAR information (see References)
  • Zoning Code and zoning maps
  • DOH wastewater resources for septic/cesspool requirements

Source links provided in References.

Specific regulations at city, county, and state levels

City (Paauilo)

No separate municipal STR law was identified in the provided sources. Paauilo is governed by Hawaii County rules and zoning.

County (Hawaii County)

  • Current STVR framework and ongoing TAR proposal govern unhosted rentals.
  • Unhosted STRs permitted only in Resort (V), General Commercial (CG), Neighborhood Commercial (CN), Downtown Hilo Commercial (CDH), Residential-Multiple (RM), and residential districts within general plan resort/resort nodes.
  • Nonconforming use certificates allow continued operation for qualifying existing STRs outside permitted zones but do not enable new unhosted permits.
  • Operation standards include 1-hour response, physical availability, guest cap tied to parking, and quiet hours (8 PM–7 AM).
  • Disciplinary actions escalate: $2,500; $5,000; $10,000 per incident.
  • Registration and renewal fees apply per Draft 5.
  • Hosted STRs are not fully regulated per county materials; however, zoning and neighbor-impact rules still apply.

Sources: Hawaii County Planning STVR/TAR resources; Draft 5 summary; Zoning Code.

State (Hawaii)

State-level rules that may affect STR operations include wastewater/septic and cesspool requirements (Department of Health), and general landlord/tenant distinctions for transient accommodations. Confirm state requirements with the Hawaii Department of Health wastewater program.

Source: Department of Health wastewater resources (see References).

Contact information for the local authority in charge of STRs

  • Hawaii County Planning Department
    • West Hawai‘i (Kona) Office
      • Address: West Hawai‘i Civic Center, Building E, 2nd Floor, 74-5044 Ane Keohokalole Highway, Kailua-Kona, HI 96740
      • Phone: 808-323-4770
      • Fax: 808-327-3563
    • East Hawai‘i (Hilo) Office
      • Address: Aupuni Center, Suite 3, 101 Pauahi Street, Hilo, HI 96720
      • Phone: 808-961-8288
      • Fax: 808-961-8742
    • Hours: 7:45 AM – 4:30 PM, Monday–Friday
    • Email: planning@hawaiicounty.gov
    • STVR resources: See References for “Short-Term Vacation Rentals” page
    • Apply/Register STVR: See References for application and registration links

Links to source pages

Practical guidance for investors

  • Confirm zoning first. If your property is not in a permitted district and lacks a nonconforming use certificate, an unhosted STR permit will not be available.
  • For unhosted operations, plan for staffing and guest communication systems to meet response-time standards and quiet-hour enforcement.
  • Verify septic capacity and parking to avoid violations tied to occupancy caps.
  • Review HOA/CC&Rs for additional restrictions; some associations prohibit short-term rentals or limit them to “guest houses” without full kitchens.
  • Budget for registration and renewal fees, as well as potential fines if compliance lapses occur.

Regulations are evolving with the TAR proposal. Monitor county announcements and consult the planning department for the latest adopted rules.

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Paauilo

Market Saturation Score

036912
Moderate Saturation
6/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Paauilo Market Analysis

Photos of Paauilo

Overview of Paauilo

Paauilo is a small rural community on the Hamakua Coast of the Big Island of Hawaii, situated in Hawaii County along the windward slope of Mauna Kea. With a small population of several hundred residents, it has the laid-back, agricultural character of an old sugar plantation town, surrounded by rolling green hills, eucalyptus groves, and sweeping ocean views. The community serves as a quiet waypoint for travelers exploring the scenic Hamakua Coast, sitting roughly 25 miles north of Hilo along the Hawaii Belt Road and roughly 30 miles southeast of Waimea.

A short drive south of Paauilo brings visitors to Akaka Falls State Park, one of the most photographed natural sites on the Big Island. The park features two waterfalls set within a lush rainforest, including the 442-foot Akaka Falls, and is typically reached in about 20 to 25 minutes via the Belt Road heading southeast toward Hilo.

To the north, the legendary Waipiʻo Valley opens up below the highway as one of the most storied landscapes in Hawaii. Once a densely populated taro-farming valley and a place of great cultural importance, it now offers a sweeping black-sand beach at its base and hiking trails along its dramatic cliffs. The scenic overlook is roughly 30 minutes from Paauilo by car, with the small town of Honokaa along the way offering a stop for coffee or supplies.

Closer to town, the surrounding Hamakua countryside rewards visitors with botanical gardens and smaller roadside waterfalls, while the Hawaii Tropical Botanical Garden near Onomea Bay is a standout. Located about 25 to 30 minutes south of Paauilo, the garden showcases thousands of tropical plant species along a coastal rainforest trail and is consistently ranked among the finest botanical gardens in the state.

With its central position on the windward Big Island, Paauilo offers short-term rental guests a peaceful, off-the-beaten-path home base from which to explore the waterfalls, valleys, and rainforests of the Hamakua Coast. Its location between Hilo and the resort areas of the Kohala Coast makes it a practical and memorable place to stay for travelers who want to experience a quieter, more agricultural side of Hawaii.

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