Volcano, Hawaii Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Volcano, HI?

YES, short-term rentals are explicitly allowed in Volcano, Hawaii. Volcano properties can operate legally as short-term vacation rentals (STVRs) under Hawaii County regulations. The Volcano market is primarily driven by tourism, with visitors seeking nature-oriented experiences, particularly those accessing Hawaii Volcanoes National Park. Popular property types include cabins and unique accommodations that appeal to tourists interested in volcanic landscapes and natural attractions.

What do Airbnb hosts actually earn in Volcano?

Volcano hosts earn a median $43,080/year with $191 ADR and 73% occupancy.

Top performers pull in $58,981+ per year.

See the full Volcano market breakdown

How to Start a Short-Term Rental Business in Volcano

Starting an STR business in Volcano requires following Hawaii County's regulatory framework established under Bill 108 (Ordinance 2018-114) and implemented through Planning Department Rule 23. Here is the step-by-step process:

1. Property Zoning Verification

Before proceeding, confirm your property is located in an approved zoning district. STVRs are permitted in:

V (Village) districts
CG (General Commercial) districts
CV (Village Commercial) districts
Residential and commercial zoning districts in General Plan Resort and Resort Node areas
RM districts for multifamily dwellings with condominium property regime

2. State Tax Registration

Transient Accommodations Tax (TAT) License: $5 for 1-5 units, $15 for 6+ units
General Excise Tax (GET) License: $15 fee

These licenses must be obtained before applying for local STVR registration.

3. County STVR Registration Application

Submit complete application to Hawaii County Planning Department including all required documentation and fees.

4. Compliance Setup

Implement required safety measures, insurance coverage, and operational procedures.

Required Documents, Permits, Licenses, and Guidelines

Essential Documents for STVR Registration:

Property Information:

STVR property address
Tax Map Key (TMK) number - obtain from Real Property Tax website
Site plan including property boundaries, dimensions, setbacks, easements, structures, driveway access, parking spaces
Floor plan identifying room locations and uses

Owner and Operator Information:

Applicant's name, address, phone number, and email
Property owner's name, address, phone number, and email
"Reachable person's" contact information (24/7 emergency contact)
Owner authorization if applicable

Licenses and Approvals:

Hawaii State TAT license
Hawaii State GET license
Final approvals from Building Division

Compliance Documentation:

Statement of Compliance with applicable regulations
Processing fee payment ($500)

Available Application Forms:

STVR Registration Application Packet (includes instructions and forms)
STVR Statement of Compliance
Nonconforming Use Certificate (NUC) Renewal Application (for properties operating before April 1, 2019)
STVR Change of Information Application (for ownership or property modifications)

Insurance Requirements:

Minimum $1,000,000 general liability coverage
Short-term rental insurance policy

Specific Regulations for Short-Term Rentals

County-Level Regulations (Hawaii County):

Property Limitations:

Maximum of 5 bedrooms for rent on building site
Rental periods must be less than 30 consecutive days
Owner/operator does not need to reside on building site (non-owner occupied allowed)

Operational Requirements:

Registration is not transferable
New application required for ownership changes, reachable person changes, or property modifications
Annual renewal required for Nonconforming Use Certificates ($250 fee)
Initial NUC application fee: $500

Grandfathering Provisions:

Properties operating outside permitted zones before April 1, 2019 can continue with NUC
NUC holders must renew annually to maintain operation rights

State-Level Regulations (Hawaii):

Tax Obligations:

Hawaii State TAT: 10.25% of gross rental income
State GET: 4% of gross rental income
County TAT: Varying rates
County GET surcharge: Varying rates

Definition Compliance:

Must comply with statewide definition of transient accommodations (fewer than 180 consecutive days)
County regulations are more restrictive (30-day minimum for STR classification)

Recent Legislative Changes:

Senate Bill 2919 (May 2024): Empowered counties with greater authority to regulate STRs
Counties now have increased power to restrict or phase out STRs in residential and agricultural areas
Regulatory environment continues to evolve with housing affordability concerns

Contact Information

Hawaii County Planning Department - West Hawaii (Kona Office)

Primary Contact for Volcano Area Investors

Address: West Hawaii Civic Center Building E, 2nd Floor 74-5044 Ane Keohokalole Highway Kailua-Kona, HI 96740

Phone: (808) 323-4770 Fax: (808) 327-3563

Hawaii County Planning Department - East Hawaii (Hilo Office)

Alternative Contact Location

Address: Aupuni Center Suite 3 101 Pauahi Street Hilo, HI 96720

Phone: (808) 961-8288 Fax: (808) 961-8742

Universal Contact Information

Email: planning@hawaiicounty.gov Hours: 7:45 AM - 4:30 PM, Monday-Friday

Additional Resources

Real Property Tax Website: For TMK number lookup
Planning Department Website: www.planning.hawaiicounty.gov
Planning Department Calendar: For meeting schedules and updates

Source Pages and Official Documentation

Primary Regulatory Documents:

Application Forms and Documentation:

State Tax Resources:

Planning Department Rules and Procedures:

Complete Planning Department Rules

Zoning and Property Information:

This comprehensive guide provides all essential information for investors considering short-term rental opportunities in Volcano, Hawaii. The regulatory framework allows for legal STR operations with proper registration and compliance, making it a viable market for vacation rental investment despite evolving regulations at both county and state levels.

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Ask the AI Advisor about Volcano

Volcano is a small, misty highland community on the eastern side of the Big Island of Hawaii, situated in Hawaii County at an elevation of roughly 3,700 feet where the Puna and Ka'ū districts meet. With a population in the low thousands, it has the feel of a quiet mountain village wrapped in native 'ōhi'a and fern forest, even though the surrounding trails and scenic roads draw a steady stream of visitors year-round. The town exists primarily as a gateway to one of the most dramatic natural attractions in the United States: Hawaii Volcanoes National Park. It lies about 30 miles southwest of Hilo, the island's main population center and nearest commercial hub, and roughly 100 miles from Kailua-Kona on the island's western shore.

Hawaii Volcanoes National Park is unquestionably the headline draw, and the reason most travelers find their way up to this cool, forested plateau. The park encompasses two of the world's most active volcanoes, Kīlauea and Mauna Loa, and offers visitors the rare chance to walk through rainforests, peer into steaming craters, and follow trails across otherworldly lava fields. The main entrance and Kīlauea Visitor Center sit only a few minutes from the village center. Hawaii Volcanoes National Park has been welcoming travelers since 1916 and remains a flagship destination of the National Park System.

Just outside the park boundary, the village of Volcano itself rewards a slow afternoon. Wooden storefronts, a handful of local cafés, and the historic Volcano House hotel cluster near the crater rim, and a short walk from the village brings visitors to the Volcano Art Center, housed in the old 1877 barracks building. The center showcases island-made woodwork, ceramics, and paintings and also hosts hula performances and cultural events on select days.

About 45 minutes to the northeast lies Hilo, the largest town on the windward side of the island and a natural complement to a Volcano-area stay. Guests often pair a rental in the uplands with day trips into Hilo to wander its farmers markets, tour the Lyman Museum, or visit the Pana'ewa Rainforest Zoo. Closer to home, Akatsuka Orchid Gardens offers a quick, fragrant stop just off the highway, where visitors can wander among a wide variety of tropical blooms grown on-site.

For short-term rental operators and travelers alike, Volcano offers a rare combination of small-village quiet and immediate access to one of the most extraordinary landscapes on earth. Its cool upland climate, lush forest setting, and proximity to Hawaii Volcanoes National Park make it especially appealing to guests who want to experience the volcanic heart of Hawaii without sacrificing comfort, character, or convenience.

Volcano, Hawaii

Generally Investor Friendly

STR Regulations for Volcano, Hawaii