Short-Term Rental Rules Near Kailua-Kona and the Kohala Coast

Short-term vacation rentals (referred to in Hawaiʻi County's official regulatory framework as Transient Vacation Rentals, or TVRs, and as Short-Term Vacation Rentals, or STVRs, under Ordinance 2018-114) are legally permitted in Kailua-Kona and across the Kohala Coast, but only in specific zoning districts and resort communities. HOA rules can override county zoning even when the location qualifies. If you are evaluating a property for short-term rental income in Kailua-Kona, Keauhou, Waikoloa Beach Resort, Mauna Lani Resort, Mauna Kea Resort, or Puako, the first question to confirm is whether that exact parcel sits in a permitted zoning district, and the second is whether the project's governing documents allow it.

Hawaiʻi County is also in the middle of a significant regulatory shift. Ordinance 25-50 (Bill 47), passed in July 2025, introduced a countywide registration requirement for all TVR operators, with the registration system opening September 1, 2026. Bill 175, which passed its second reading on September 2, 2026, creates a four-month grace period running September 1 through December 31, 2026, during which the Planning Director may waive enforcement fees for registration violations. A separate bill, Bill 147, would add updated operational standards and a revised fine structure. Understanding where the rules stand today, and where they are heading, is part of any sound purchase analysis.

The Permitted Zoning Districts: Where TVRs Can Operate

STVRs and TVRs are permitted in these specific zoning districts under Ordinance 2018-114 and the Planning Department's Rule 23:

• Resort (V): the primary zone covering most resort community properties
• General Commercial (CG) and Village Commercial (CV)
• Multiple-Family Residential (RM) for condominiums governed under Hawaiʻi Revised Statutes Chapters 514A or 514B
• Residential and Commercial zones located within General Plan Resort and Resort Node areas

(Hawaiʻi County uses both terms in its code: "Transient Vacation Rental" is the designation used in the Ordinance 25-50 registration framework, while "Short-Term Vacation Rental" appears in the original Ordinance 2018-114. Both refer to the same class of rental use.)

Single-family residential and agricultural zones are not permitted zoning districts for new TVRs. Most inland neighborhoods in the Kona area fall into these categories, which means a single-family home set back from the coast typically does not qualify unless it holds a Nonconforming Use Certificate from before the 2018 ordinance took effect.

The Hawaiʻi County Planning Department administers the TVR program and maintains official zoning maps. Confirming a property's exact Tax Map Key (TMK) and zoning designation with the Planning Department is the only reliable way to verify eligibility before making an offer.

One note on rental period definitions: Ordinance 2018-114 defines a Short-Term Vacation Rental as an unhosted dwelling rented for 30 consecutive days or fewer, with no more than five bedrooms available for guests. Ordinance 25-50's registration framework applies to rentals of 180 consecutive days or fewer. Both definitions remain relevant depending on which requirement is being evaluated, and buyers should confirm which standard applies to a specific property's operating model.

Kailua-Kona and Keauhou: What the Zoning Looks Like on the Ground

Kailua-Kona is the most active TVR market on Hawaiʻi Island. A county economic impact study completed in June 2025 found more than 8,000 active vacation rental listings island-wide as of March 2025.

The west-facing shoreline corridor is where TVRs are most consistently permitted. Along Aliʻi Drive, condominiums on the ocean side of the street generally sit in resort or resort-node zoning and are eligible for short-term rental use, while condominiums on the mauka (mountain) side of the same street often do not qualify. The same general pattern applies further up the Queen Kaʻahumanu Highway corridor: oceanside properties tend to be in permitted zones, while inland or uphill properties tend not to be.

Keauhou, which sits within the Kailua-Kona area, has a number of condominium and mixed-use projects designed for visitor accommodations, including Keauhou Resort condominiums, Keauhou Punahele, and the Kona Surf and Racket Club condominiums. Many of these projects are in resort or resort-node areas and are eligible under county zoning. However, not every building's governing documents permit short-term rentals, and parcel-level verification remains essential regardless of the general area's zoning.

A critical nuance for Kona condo buyers: zoning eligibility and HOA permission are two separate questions. A condominium may be correctly zoned and still be ineligible for short-term rentals because the project's CC&Rs, bylaws, or house rules prohibit them. Reviewing the full set of governing documents, including any on-site management agreements, is required before underwriting rental income.

The Kohala Coast Resort Communities: Waikoloa Beach Resort, Mauna Lani Resort, Mauna Kea Resort, and Puako

The three major resort communities on the Kohala Coast (Waikoloa Beach Resort, Mauna Lani Resort, and Mauna Kea Resort) each fall within the Resort (V) zoning district, the most straightforward category for TVR permitting under Hawaiʻi County code. The coastal community of Puako, a small enclave of beachfront and near-beach properties situated between Mauna Lani and Mauna Kea resorts, also falls within the South Kohala resort corridor. Puako properties are typically single-family homes rather than condominiums, and zoning eligibility should be verified on a parcel-by-parcel basis.

Waikoloa Beach Resort

Waikoloa Beach Resort is one of the most active short-term rental markets on the Kohala Coast. A substantial portion of the condominium inventory, including many units in communities such as Kolea, Haliʻi Kai, and Vista Waikoloa, is Resort (V) zoned and has an established rental presence. The resort's hotel-and-amenity environment supports consistent visitor demand.

Even within the resort, HOA rules vary by project. Some developments explicitly support short-term rentals and may have on-site programs; others restrict minimum stay lengths or impose other limitations in their governing documents. Each building needs to be reviewed individually. West Side real estate listings include inventory across the Waikoloa Beach Resort corridor and surrounding communities.

Mauna Lani Resort

Mauna Lani Resort is part of the South Kohala resort corridor. County General Plan materials treat this area as organized around visitor accommodations and related resort facilities, which is reflected in its Resort (V) zoning. Villa complexes and condominium projects within the resort can support short-term rental use when the underlying project documents permit it.

The inventory mix at Mauna Lani includes custom single-family homes alongside condominiums and villas. Custom homes in the resort are often zoned Residential (R) rather than Resort (V), which means they do not automatically qualify as permitted zoning districts for new TVRs. Confirming the specific zoning for each parcel, not just the general area, matters here.

Mauna Kea Resort

Mauna Kea Resort, also on the Kohala Coast, operates within the same Resort (V) zoning framework. Properties in the resort that are in condominium or villa structures, and whose governing documents allow short-term rentals, can generally qualify for TVR permits. As with the other resort communities, the parcel-level TMK and HOA document review determine whether a specific unit is viable.

Nonconforming Use Certificates: The Grandfathered Exception

A Nonconforming Use Certificate (NUC) is a county-issued authorization that lets a property continue operating as a TVR in a zone that would not permit a new rental today, preserving a grandfathered right tied to pre-ordinance operations. These certificates were available to operators who were running short-term rentals before Ordinance 2018-114 took effect, with the relevant qualifying date being April 1, 2019 for Bill 108 purposes.

NUCs are renewable annually. Missing a renewal deadline or failing to notify the Planning Department of an ownership change can result in losing the right to operate. The original pathway for obtaining a new NUC is no longer available: no new NUCs are being issued for properties in non-permitted zones.

When a property with an NUC sells, the rental permission does not automatically transfer. The incoming owner must follow the county's change-of-information process and notify Planning of the new ownership within the required timeframe. Buyers should verify NUC status, renewal history, and transfer procedures with the county before closing, and include appropriate contract language that protects the right to operate pending that verification.

NUC properties are relatively rare and often carry a purchase price premium reflecting the value of the grandfathered status.

The Registration Requirement: Ordinance 25-50, Bill 175, and Where Things Stand

Ordinance 25-50 (Bill 47), passed by the Hawaiʻi County Council in July 2025 and signed into law, requires all TVR operators, both hosted and unhosted, to register with the county. The original implementation deadline of December 2025 was extended first to July 1, 2026, and then to September 1, 2026, the date on which the county's registration system through Deckard Technologies opened.

Bill 175, which passed its first Council reading on August 5, 2026, and its second reading on September 2, 2026, creates a four-month grace period running September 1 through December 31, 2026. During that window, the Planning Director may waive enforcement fees for registration violations, providing additional time for operators still working through the registration process. Confirm the current registration and enforcement status directly with the Hawaiʻi County Planning Department, as conditions in this area of the law continue to move quickly.

Registration fees and annual renewal fees under Ordinance 25-50 are structured as follows:

Rental Type	Initial Registration Fee	Annual Renewal Fee
Hosted TVR or B&B	$250	$100
Unhosted TVR or STVR	$500	$250

Failing to register can result in fines up to $10,000 per violation under the existing ordinance.

The registration process requires applicants to provide a site drawing, certificate of tax clearance, confirmation of no delinquent real property or transient accommodations taxes, a General Excise Tax (GET) license, a Transient Accommodations Tax (TAT) registration certificate, and the applicable registration fee.

State Tax Obligations Every TVR Owner Must Plan For

Short-term rental income in Hawaiʻi is subject to both state GET and TAT. The combined tax load is meaningful and belongs in any purchase pro forma from day one.

Tax	Rate	Levied By
State TAT	11%	Hawaiʻi State
County TAT	3%	Hawaiʻi County
State GET	4%	Hawaiʻi State
County GET surcharge	0.5%	Hawaiʻi County

The state TAT rate increased to 11% as of January 1, 2026, reflecting a 0.75 percentage point statewide green fee added to the prior 10.25% rate. Owners remain responsible for tax collection and remittance even when using a third-party management company. GET and TAT registration numbers must be displayed in all advertising for the property. Confirm current rates and filing schedules directly with the Hawaiʻi Department of Taxation, as rates and rules can change.

Operational Standards Under the Existing Rules

Current county rules include several operational requirements for registered TVRs, independent of any changes Bill 147 may add if enacted:

• Local contact: A reachable person within Hawaiʻi County must be available 24/7 to respond to issues. One individual may not serve as the local contact for more than one property unless licensed as a property manager.
• Quiet hours: Currently set at 9 p.m. to 8 a.m. under the existing framework. Bill 147 proposes shifting quiet hours to 10 p.m. to 8 a.m.
• Maximum bedrooms: No more than five bedrooms per rental property.
• On-site parking: Required and must be used by guests.
• Advertising: The county TVR registration or NUC number must appear in all listings.
• No commercial events: Gatherings must be residential in character; weddings, concerts, and large events are not permitted.

Bill 147, which would add formal occupancy limits (up to 12 adults), an expanded fine structure beginning at $5,500 for a first violation, and additional operational standards, received unanimous favorable recommendations from both the Leeward and Windward Planning Commissions as of mid-2026. As of early September 2026, it remains in committee and has not been enacted. Owners and prospective buyers should monitor its progress through the Hawaiʻi County Council.

What Sellers Should Know

Sellers with an active TVR registration, current GET and TAT accounts in good standing, and documented permitted status are better positioned to support their asking price, because buyers in this segment will scrutinize the regulatory picture before committing. Clear, current documentation of the property's registration number, renewal history, and tax compliance reduces delays and builds buyer confidence.

If the property holds an NUC, understanding the transfer requirements and timeline is part of listing preparation. Assembling that documentation before going to market reduces friction in the negotiation process and demonstrates that the income stream is legally supported.

For a current read on your property's market position, the home valuation and market snapshot tools on this site offer a useful starting point.

Due Diligence Checklist Before You Buy

For any property being evaluated for short-term rental income near Kailua-Kona or on the Kohala Coast, the following steps belong in your pre-offer process:

• Confirm the TMK and zoning with the Hawaiʻi County Planning Department. Do not rely on general area descriptions alone.
• Verify whether the property is already registered as a TVR, and if so, confirm the registration number, renewal status, and transfer procedures.
• Request and review all governing documents, including CC&Rs, bylaws, house rules, and any on-site management agreements, and look specifically for rental term minimums, registration requirements, and prohibitions on transient rentals.
• Confirm building permit history, including final approvals for building, electrical, and plumbing, which are required for TVR registration.
• Assess on-site parking availability against county requirements.
• Underwrite state and county tax obligations as part of your pro forma, including GET, TAT, and county surcharges at current rates.
• Evaluate on-island management needs. If you are not based on the island, you will need a local contact who meets county requirements, a cost that belongs in your net operating model.
• Include appropriate contingencies in your offer that allow you to verify TVR eligibility and HOA compliance before committing fully to the purchase.

A side-by-side view of Kona and Kohala Coast communities by property type and price point can be explained by a licensed realtor like Jennifer Bien. Reach her through calling +1(808) 938-3052, or sending a message through NextHome Paradise Realty contact page. 

FAQ

Where are short-term vacation rentals allowed near Kailua-Kona?

Permitted zoning districts include Resort (V), General Commercial (CG), Village Commercial (CV), Multiple-Family Residential (RM) condominiums, and residential or commercial parcels within General Plan Resort and Resort Node areas. On the ground, that translates to much of the oceanside corridor along Aliʻi Drive and Keauhou in Kailua-Kona, and to the established resort communities of Waikoloa Beach Resort, Mauna Lani Resort, and Mauna Kea Resort on the Kohala Coast. Properties in single-family residential and agricultural zones are not eligible for new permits.

Can a condo's HOA block short-term rentals even if the zoning allows them?

Yes, and this is one of the most important distinctions for condo buyers to understand. Zoning sets the ceiling for permitted use at the parcel level, but a homeowners' association or condo association can impose rules that go further. CC&Rs, bylaws, and house rules can prohibit transient rentals, set minimum stay lengths, or require bookings through an on-site management program, all of which are enforceable independently of county rules. Reviewing governing documents is a required step before factoring rental income into any purchase decision.

What is a Nonconforming Use Certificate and can it be transferred to a new owner?

An NUC is a county-issued certificate that authorizes continued TVR operation on a parcel where no new rental permit would be granted today, locking in a pre-ordinance use that would otherwise be prohibited. The qualifying date for existing operations was April 1, 2019 under Bill 108. The NUC must be renewed annually and does not transfer automatically at closing. When a property with an NUC changes hands, the new owner must notify the county Planning Department and follow the change-of-information process. Buyers should account for this in their timeline and contract terms, and no new NUCs are being issued for properties in non-permitted zones.

When did the county's TVR registration requirement take effect?

The county's registration system opened September 1, 2026, after the implementation deadline moved from December 2025 to July 1, 2026, and then again to September 1. Bill 175, which passed its second reading on September 2, 2026, creates a grace period through December 31, 2026 during which the Planning Director may waive enforcement fees for violations. Confirm the current registration and enforcement status directly with the Hawaiʻi County Planning Department.

What taxes apply to short-term rental income in Kailua-Kona?

Four separate levies apply: the state TAT (11% as of January 1, 2026, up from the prior 10.25% rate following a statewide green fee increase), the county TAT (3%), the state GET (4%), and the county GET surcharge (0.5%). Owners bear responsibility for collecting and remitting all applicable taxes on schedule, regardless of whether a management company handles day-to-day operations. Current rates and filing requirements should be confirmed directly with the Hawaiʻi Department of Taxation.

What is Bill 147 and how might it affect short-term rental owners?

Bill 147 is proposed legislation that would update operational standards and zoning code provisions for both hosted and unhosted TVRs across Hawaiʻi County. It received unanimous favorable recommendations from both the Leeward and Windward Planning Commissions as of mid-2026, then returned to the county council committee for further review. If enacted, it would establish occupancy limits (up to 12 adults), shift quiet hours to 10 p.m. to 8 a.m., require guests to use designated on-site parking, prohibit commercial events, and set fines beginning at $5,500 for a first violation. As of early September 2026, Bill 147 remained in committee and had not become law.