What’s actually happening with Maui vacation rental condos and the new H3/H4 zoning? There’s been A LOT of noise surrounding this issue over the past couple years.

And if you own a Maui condo, are thinking about selling one, or are considering buying one, it can be difficult to separate the facts from the headlines.

Here’s what we know today…

What is H3/H4 Zoning?

Maui County passed Bill 88 in June 2026, creating two new Hotel zoning classifications…H3 and H4.

Why does that matter?

Because these classifications create a potential pathway for certain apartment-zoned condo communities to continue operating legal short-term vacation rentals.

Bill 9 established a timeline to phase out short-term rentals in many A1 and A2 apartment-zoned properties…beginning in West Maui in 2029 and throughout the rest of Maui in 2031.

Bill 88 changed the conversation.

It did NOT automatically rezone these properties…

But it created a pathway for qualifying communities to potentially move from A1/A2 zoning into H3/H4 zoning.

That’s a BIG distinction.

Which Maui condos might get rezoned?

The County Council is currently moving forward with Resolutions 26-110 and 26-111.

These resolutions include a number of condo communities being considered for H3/H4 zoning.

Some of the Kihei condos and Wailea condos currently included in the resolutions are…

• Wailea Ekahi
• Wailea Ekolu
• The Palms at Wailea
• Kamaole Sands
• Luana Kai
• Maui Sunset

There are also numerous properties in West Maui, Maalaea, the North Shore and Hana being considered.

Does that mean these properties have officially been rezoned?

No.

And that’s an important point.

Where are we today?

On July 24, 2026, Resolutions 26-110 and 26-111 advanced through the Maui County Council.

The next stop is the Maui Planning Commission for additional review, testimony and recommendations.

From there… the process continues.

So are we at the finish line?

Absolutely not.

But are we moving forward?

YES.

And after all the uncertainty surrounding Maui’s vacation rental condo market… forward movement matters.

Could more communities be added?

Yes, additional properties may still be considered for H3/H4 zoning.

Some communities that have previously been discussed include Maui Kamaole, Grand Champions, Maui Vista, Hale Kamaole, Kihei Bay Vista and Kapalua Bay Villas… among others.

Nothing is guaranteed.

Properties might be added…

Properties might be removed…

And the process continues to evolve.

This is exactly why we keep telling our clients…

Facts over feelings.

Data over emotion.

Impact for Maui condo owners

Is Bill 88 good news?

For many owners… I believe it is.

When Bill 9 was originally introduced, there was tremendous uncertainty surrounding the future of Maui’s short-term rental condo market.

Bill 88 provides something we didn’t have before…

A potential pathway forward.

That doesn’t mean every property will receive H3/H4 zoning.

It doesn’t mean the issue is settled.

And it certainly doesn’t mean owners should make major financial decisions based on speculation.

But there is now a process underway… and that matters.

Buyers are paying attention

This is where doing your homework becomes incredibly important.

Two condo communities located right next to each other can have completely different zoning situations.

Just because a property has historically operated as a vacation rental does NOT automatically mean that use is guaranteed forever.

If vacation rental income is important to your purchase… you need to understand exactly what you’re buying.

What is the current zoning?

Is the property affected by Bill 9?

Is it being considered for H3/H4?

Is it already located in hotel zoning?

What is the HOA doing?

These are questions that matter.

Recently listed apartment zoned (Minatoya) vacation condos

How sellers are navigating this market

Knowledge is power.

Buyers are asking more questions today than they were a few years ago… and they should be.

The more clarity you can provide regarding your property’s zoning, HOA efforts and potential H3/H4 status… the better positioned you are to navigate today’s market. This is also a wist time to request an updated market valuation for your condo.

We’ve already seen uncertainty put pressure on inventory, pricing and buyer confidence throughout portions of Maui’s condo market.

Could increased clarity around H3/H4 zoning help?

Absolutely.

But only time will tell.

The bottom line…

Is the sky falling on Maui’s vacation rental condo market?

No.

Is everything resolved?

Also no.

The truth is somewhere in the middle.

Bill 88 has created a legitimate pathway for certain Maui condo communities to potentially preserve short-term rental use through H3/H4 zoning.

That’s progress…

But there is still work to be done.

We’ll continue following this closely as the resolutions move through the Planning Commission and County Council.

Because when you’re making decisions involving Maui real estate facts are important.

Know what you own…

Know what you’re buying…

And make decisions based on the information available today.

Have questions about a specific Maui condo community and how Bill 9, Bill 88 or H3/H4 zoning could impact it?

Reach out anytime…

We’re happy to share what we know and help you make sense of it.

Aloha,

Anthony Sayles R(S)

808-280-6532

Anthony@DanoSayles.com