Lahaina, HI.

In-depth analysis

Should you buy an STR in Lahaina in 2026?

Only with the zone verified and the Bill 25 timeline acknowledged. West Maui is among the highest-ADR vacation markets in the United States — $356 nightly average, 61% occupancy, and the highest RevPAR in this guide. The market score sits at 74/100 because of an existential regulatory risk: Maui County’s Bill 25, advanced in response to the 2023 Lahaina wildfire and the island’s housing crisis, is moving to phase out STR use of apartment-zoned condos that have operated under the “Minatoya List” exemption for decades.

Regulation: where the city stands

Maui’s STR framework is unusually consequential and unusually unstable. Buyers should understand three categories before any offer:

• Hotel & Resort zoned (H-M, H-1, H-2) — long-term legal STR use; the cleanest legal path; condo-heavy (Kaanapali, Kahana, Napili high-rises).
• Apartment zoned with Minatoya List exemption — historically operated as STRs under a 2001 county clarification. Bill 25 (introduced 2024) proposes to phase this exemption out over a multi-year window. Pending council action, expected litigation. Buying into this category is buying a regulated-runoff asset.
• Residential zoned (R-1, R-2, R-3) — STR generally not permitted; B&B and Short-Term Rental Home permits exist but are limited, capped, and tightly enforced.

In short: H-zoned property is the legal path forward. Apartment-zoned property carries a hard-to-price timeline risk. Verify zoning at the Maui County Planning Department before offer — not via Realtor representation.

The market by the numbers

Source: AirDNA-comparable industry averages. Demand is geographically segmented — Kaanapali (resort), Kahana/Napili (mid-resort condo), and Lahaina town (still rebuilding post-wildfire) all price differently.

Submarkets that matter

• Kaanapali Resort — H-zoned; legal STR; highest ADR; resort-managed.
• Kahana / Napili / Honokowai (Lower Honoapiilani) — primarily apartment-zoned condo; high Bill 25 exposure; trades at a discount in 2025-2026.
• Lahaina town — rebuilding from August 2023 wildfire; uncertain timeline; humanitarian, regulatory, and emotional complexity beyond investment metrics.
• Kapalua — premium resort; H-zoned; thin inventory.

The 3 mistakes buyers make here

1. Buying apartment-zoned condo without modeling Bill 25. Underwriting a 30-year hold on a property whose legal STR use may end in years 3-7 is a fundamental mispricing.
2. Treating “Maui” or “Lahaina” as one market. West Maui, South Maui (Kihei/Wailea), Upcountry, and East Maui all have different demand, different regulation, and different climates.
3. Underestimating the post-wildfire social context. Lahaina town is in active rebuilding; political pressure on absentee STR ownership is real and ongoing. Operate accordingly.

What to do next

• Verify property zoning with Maui County Planning Department before offer.
• Track Bill 25 status directly via county council records, not third-party news.
• Run Market Score and Comp Analyzer within the same zoning category.
• Use the DSCR Loan Calculator; Hawaii rates run higher and reserve requirements stricter than mainland.
• Read Reading an STR Ordinance Before You Buy.

Not investment advice. Verify all regulatory and tax information with local authorities and licensed professionals before committing capital. Bill 25 status changes frequently — confirm current text.

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