What Bill 9 and Bill 88 Mean for Condo Buyers & Owners

Aloha,

If you have been following Hawaii real estate news or discussing investment properties on Maui, you have likely encountered two wildly opposite claims:

• "Maui is banning all vacation rentals across the island."
• "Bill 88 solved everything and saved all the Minatoya List condos."

Neither statement is accurate.

In fact, Maui's short-term rental (STR) laws are currently among the most debated and ill-informed topics in island real estate. Between social media rumors, misread news headlines, and complex county legislation, buyers and sellers are often left trying to make major financial decisions based on partial information.

Let’s clear up the confusion and look at what is actually happening in 2026—in plain, simple English.

1. The Backstory: What Is Bill 9 and Why Is Everyone Talking About It?

To understand today’s market, we have to look back at Bill 9 (Ordinance 5909), which was enacted in late 2025.

For decades, thousands of condominium units located in A-1 and A-2 Apartment Districts operated as legal short-term vacation rentals under what is known as the Minatoya List. This framework originated from a 2001 legal opinion that allowed certain apartment-zoned properties operating before zoning rules changed to continue housing visitors.

Bill 9 changed that policy by establishing a firm schedule to phase out transient vacation rentals in apartment-zoned complexes:

• West Maui Phase-Out Deadline: December 31, 2028 (Effectively ending short-term rental use on January 1, 2029)
• South Maui & County-Wide Deadline: December 31, 2030 (Effectively ending short-term rental use on January 1, 2031)

The Critical Myth to Debunk: Maui is NOT banning all vacation rentals. Bill 9 specifically targets properties operating under apartment zoning. Properties that are already officially Hotel-Zoned (such as H-M, H-1, or H-2) are completely unaffected by Bill 9 and will continue operating as normal. Click here to view active Fee Simple, Hotel-Zoned Maui condo listings.

2. Enter Bill 88: The New Hotel Zoning Framework

Recognizing the economic impact and complexity of transitioning thousands of vacation rental units, the Maui County Council passed Bill 88 (Ordinance 6008) in June 2026.

Bill 88 created two brand-new zoning classifications:

• H-3 Hotel District
• H-4 Hotel District

These new hotel districts mirror many of the density and height standards of existing A-1 and A-2 apartment districts while explicitly permitting transient vacation rental use. In simple terms, Bill 88 created a legislative "bridge"—a tool that allows qualifying apartment-zoned condos that historically operated as vacation rentals to apply for formal hotel zoning.

3. The Big Misconception: Does Bill 88 Automatically Save Every Condo?

No. And this is where most ill-informed reports get it wrong.

It is vital to understand the difference between creating a zoning option and actually applying it to a building:

1. Bill 88 created the tool (the H-3 and H-4 zoning categories).
2. Individual rezoning legislation determines which properties actually receive it.

County studies identified roughly 4,500 units across approximately 104 properties as potential candidate complexes for transition into H-3 or H-4 hotel zoning. However, being on a candidate list is not the same as holding approved hotel zoning.

4. Can Two Nearby Condos Have Completely Different Futures?

Yes. In fact, this is one of the most important takeaways in the 2026 Maui market.

Two condominium complexes located side-by-side along the Kihei or Kaanapali coastline can have drastically different outlooks based on:

• Their underlying Tax Map Key (TMK) zoning (Hotel vs. Apartment)
• Their current position in the County's H-3/H-4 rezoning pipeline
• Individual Condo Association (AOAO) house rules and board stance
• Building-specific master insurance costs, HOA reserves, and financing status

Broad statements like “Kihei condos can vacation rent” or “Minatoya condos are all losing their permits” are far too simplistic. Every building must be evaluated individually. Before submitting an offer, make sure to read 10 questions every Maui buyer should ask.

6. The Bottom Line for Buyers and Sellers

For buyers who require guaranteed short-term rental income from day one, focusing on existing Hotel-Zoned properties or carefully verifying a building's precise rezoning status is essential.

For buyers looking for a primary residence, second home, or long-term investment, the regulatory shift has created unique opportunities in complexes where non-rental owners prefer a quieter residential community.

For sellers, transparency is everything. Marketing a property as "H-3 Zoned" before the County Council has officially signed off on the final ordinance creates legal liability. Clearly distinguishing between proposed rezoning and approved zoning protects all parties. If you want to see what your home is worth in today's changing market, you can get an updated Maui home valuation.