Last updated: October 7, 2026 · By Clint Hansen, Broker
Clint has told buyers the same thing for 26 years: "You don't buy here to make money, you buy here for a lifestyle change and the opportunity to live a healthier and more fulfilled life." Maui runs on tourism — given the island's geographic isolation, few things provide as many resources with as little impact as the visitor industry — and while Clint believes the economy needs to diversify, he's candid that tourism is the vehicle that lets the island thrive. Most vacation-rental buyers, in his experience, aren't trying to get rich; they want to cover some of their lifestyle costs, gain a few write-offs, or park 1031 tax-deferred funds after selling a business or another property.
Clint is upfront that the numbers are tighter than most buyers expect. Even with 50% down, it can be difficult to break even. Property-management fees are often around 25%, and on top of that sit three layers of tax — Hawaii's General Excise Tax (GET), the Transient Accommodations Tax (TAT), and the Maui County Transient Accommodations Tax (MCTAT) — which Clint describes as "another property manager you don't get the benefit of." That's exactly why choosing the right property matters more than chasing a headline cap rate. (Confirm current tax rates and your own numbers with your CPA.)
Three layers of tax apply to short-term rental income on Maui, and they stack on top of each other. Rates below are current as of 2026 and verified directly against the taxing authorities — always confirm your own numbers with your CPA.
| Tax | Rate | Notes |
|---|---|---|
| Hawaii General Excise Tax (GET) | 4.5% | 4% state rate + 0.5% Maui County surcharge (through 2030) |
| State Transient Accommodations Tax (TAT) | 11% | Rose from 10.25% on January 1, 2026 (Act 96's "Green Fee") |
| Maui County TAT (MCTAT) | 3% | County-level tax on top of the state TAT, in effect since November 2021 |
| Combined | 18.5% | Off the top of gross rental income, before management fees |
Sources: Hawaii Dept. of Taxation — GET rate · Hawaii Dept. of Taxation — Maui County GET surcharge · Hawaii Dept. of Taxation — TAT rate increase, Announcement No. 2025-03 · Maui County — Transient Accommodations Tax (MCTAT)
There are properties and locations where you can do better. One of Clint's favorites is Maui Banyan, where a two-bedroom unit is often a lock-off: you can rent one side as a studio and the other as a one-bedroom — essentially two units for the price of one. It's also flexible for owners: use just the studio side for a short stay, the one-bedroom for a longer visit, or the full two-bedroom when family comes. Layout and location like this do more for real-world returns than market timing.
Uncertainty over Bill 9 — and whether many properties will be allowed to be vacation-rented — has significantly dropped the price of vacation rentals, and of Maui condos generally. The negative press has also reduced the number of people visiting Maui. For a buyer, Clint sees a silver lining: it's a strong time to buy a condo, because you typically need significantly less money down to make the numbers meet your financial needs.
Bill 9 sets adopted end dates for apartment-district vacation rentals, and the new H-3 and H-4 districts have not rezoned anything by themselves. Ordinance 5909 (Bill 9), passed December 15, 2025, ends short-term rental use for units on the county's allowed list (often called the Minatoya list) on January 1, 2029 in the West Maui community plan area and January 1, 2031 in all remaining areas; hotel and resort zoned rentals are not covered. Ordinance 6008, in force since June 22, 2026, created the H-3 and H-4 hotel categories. Moving a specific complex into one of them takes separate council resolutions. On September 23, 2026 the Maui Planning Commission voted 6 to 2 to recommend exemptions for only five properties among the dozens proposed in Resolutions 26-110 and 26-111 (Star-Advertiser, September 23, 2026), and its recommendation does not bind the Council, so as of early October 2026 no complex had been rezoned and a recommended rezoning should never be read as adopted. Price commentary above is about how this uncertainty has affected values; this section is the rule itself. Underwrite any purchase to the legal end date, and confirm the unit's status on its listing page and in the association's documents. Maui County Ordinance 5909.
Clint has started using a term for a buyer he's seeing more of: climate refugees. "People are making the decision to visit large parts of the year on island not because it's warm, but rather because it's cool. We have some of the most stable weather patterns in the world — not too hot, not too cold, just right." It fits his larger point: the strongest reason to own on Maui isn't the spreadsheet, it's the life. Hawaii has the highest life expectancy of any U.S. state (CDC/NCHS, 2022 state life tables) — and, more importantly, people are simply happier.
Maui County taxes real property by class, and a rental can land in a different class than a home the owner lives in. The county sets rates each fiscal year per $1,000 of assessed value, with tiers by value, and owner-occupied and non-owner-occupied homes pay different rates; recent county proposals treated vacation rental properties less favorably than owner-occupied homes. This is real property tax, which is separate from the GET, TAT and MCTAT in the table above, and both belong in your numbers. Ask the seller for the current tax bill and the class it was billed under, then ask us which class would apply to your use. The county's tax rate resolution for fiscal year 2026-27 lists every class and tier. Confirm figures with your CPA, as the rest of this guide advises. Maui Now on how the county sets rates by class.
The association fee is a fixed cost that comes out before any rental profit, and it varies by building, so use the fee line on the listing rather than an average. The governing documents and budget show what the fee includes. Hawaii's Real Estate Commission tells buyers to review an association's finances, audit reports and reserves to get a heads up on potential special assessments, and its June 2025 Condominium Bulletin describes escalating premiums and limited coverage options for condominium associations. For an investor, a special assessment is a cost with no matching rent, so ask for the reserve information before you build a cash flow model. We do not quote a typical fee because we have not found a published source for one. Check the association's rental rules, which can be stricter than the county's. Hawaii Condo Living Guide (DCCA Real Estate Branch).
With a mortgage, the lender requires hurricane insurance, and a hurricane policy does not cover flood damage. The Hawaii Insurance Division says flood damage and lesser non-hurricane wind events are not covered under hurricane insurance, and that the hurricane deductible is often a percentage of the dwelling coverage limit; its commissioner's example was five percent of a $400,000 limit, or $20,000. Flood insurance becomes a lender requirement when the building is in a Special Flood Hazard Area on a federally backed loan. We have not found a published source on how rental use changes premiums, so ask an insurance agent to quote your intended use, and read the declarations page. For condominiums, the association's coverage matters too, which is part of why the fee line deserves scrutiny. Hawaii Insurance Division hurricane FAQ.
Yes, because both are looked up by address and both can change insurance and lender requirements. For flood, FEMA's Map Service Center lets you search an address and download a FIRMette, and Hawaii's Flood Hazard Assessment Tool shows flood zones from FEMA's maps while stating that it does not identify all areas subject to flooding. A Special Flood Hazard Area is where the mandatory flood insurance purchase requirement applies. For tsunami, the Tsunami Aware viewer, developed with the Hawaii Emergency Management Agency and NOAA, provides interactive evacuation zone maps. We have not confirmed the zone status of any specific property. Run both lookups on every unit on your shortlist, and plan how guests would be told what to do in a warning. Hawaii Flood Hazard Assessment Tool.
Thinking about a Maui vacation rental? Clint will give you the honest numbers before you buy.
Clint Hansen, Broker (RB-21616) ·
161 Wailea Ike Place, A-106, Wailea, Maui, HI 96753
Office: (808) 743-1214 · clinthansen@mauirealestate.net
