Maui Bill 9: What Buyers, Sellers & Investors Need to Know About the Short-Term Rental Phase-Out

Maui’s real estate market is undergoing one of the most significant regulatory shifts in its history following the passage of Maui County Bill 9 in December 2025.

This landmark legislation directly impacts more than 6,000 short-term vacation rentals (TVRs) in apartment-zoned condominium districts commonly known as the “Minatoya List.” For buyers, sellers, and investors, this is not a minor policy update, it is a structural change that will reshape how condo properties are used, valued, and traded across Maui for years to come.

Understanding what the law actually does, and how it is being implemented, is now essential for making informed real estate decisions on the island.

What Is Maui Bill 9?

Passed by the Maui County Council in a 5–3 vote in December 2025, Bill 9 is designed to gradually convert apartment-zoned condominium properties currently used as short-term vacation rentals back into long-term housing.

The stated purpose of the law is to increase housing availability for local residents in the aftermath of the 2023 Lahaina wildfires and Maui’s ongoing housing shortage.

The law primarily targets:

• Apartment-zoned condominiums operating as short-term rentals
• Properties commonly referred to as the “Minatoya List”
• Non-resort, non-hotel zoned vacation rental buildings

It does not apply to:

• Hotel-zoned resorts
• Licensed bed-and-breakfast operations
• Legally designated hotel or resort properties

Phase-Out Timeline (Key Deadlines)

One of the most important components of Bill 9 is its extended transition period, allowing current owners time to adjust.

As currently structured:

• West Maui: Short-term rentals may continue until January 1, 2029
• South Maui and other districts: Short-term rentals may continue until January 1, 2031

After these dates, affected units will be required to transition to long-term rental or residential use.

Owners of impacted properties are expected to receive formal notices outlining compliance timelines and requirements.

Legal Challenges Are Already Underway

Following its passage, Bill 9 has already triggered legal action from property owners and industry stakeholders.

Key arguments raised include:

• Potential violations of property rights
• Questions around “non-conforming use” protections
• Concerns over compensation or regulatory takings

As with many major land-use policies in Hawaii, the final outcome may ultimately be shaped by ongoing court decisions as well as administrative implementation.

For now, the law remains in effect, and the market is beginning to adjust in anticipation of enforcement.

Market Impact on Maui Real Estate

Even before full implementation, Bill 9 is already influencing buyer behavior, pricing strategy, and investor sentiment.

Expected Market Effects:

• Reduced long-term viability of short-term rental income in affected zones
• Potential downward pressure on pricing for non-conforming units
• Increased uncertainty in apartment-zoned condo valuations
• Gradual shift in demand toward hotel- and resort-zoned properties

At the same time, the law is expected to increase long-term rental inventory, which may reshape rental supply dynamics across the island.

This is not just a regulatory shift, it is a full-cycle change in how condo assets are evaluated on Maui.

What This Means for Sellers

If You Own a Short-Term Rental Condo (Minatoya List / Apartment Zoned)

Sellers in this category are now operating in a highly informed buyer market.

Buyers are closely evaluating:

• Remaining legal rental timeline (2029 or 2031 cutoff)
• HOA rules and enforcement history
• Risk exposure after phase-out dates
• Income assumptions based on reduced rental horizon

In this environment, transparency and strategic positioning are critical. Properties with clear documentation and strong operational history will stand out, but pricing must reflect regulatory reality and time-limited income potential.

If You Own a Non-STR or Long-Term Rental Condo

Even properties not directly affected by Bill 9 are experiencing indirect market pressure.

Why?

• Investors are recalibrating expectations across all condo segments
• Future supply shifts are influencing buyer psychology
• Overall condo market sentiment is more cautious

This makes pricing strategy and marketing clarity more important than ever, even for unaffected units.

What This Means for Buyers

For buyers, this legislation makes due diligence more important than ever before.

Before purchasing a Maui condo, it is essential to confirm:

• Zoning classification (hotel vs apartment)
• Whether the property is part of the Minatoya List
• Current legal short-term rental status
• HOA rules regarding transient use
• Long-term viability under Bill 9 timelines

Key Market Reality:

• Hotel- and resort-zoned properties remain unaffected
• Apartment-zoned vacation rentals now carry a defined regulatory sunset period

This is creating a clear separation in the market between stable hotel-zoned assets and transition-bound apartment-zoned condos.

The Bottom Line

Maui Bill 9, passed in December 2025, represents one of the most significant regulatory changes in the island’s modern real estate history.

With a phased implementation timeline stretching into 2029 and 2031, and legal challenges already underway, the full impact will continue to unfold over time.

However, one thing is already clear:
zoning has become one of the most important value drivers in Maui real estate.

Buyers and sellers who understand these changes early will be in the strongest position to navigate the shifting market ahead.

If you are considering buying or selling a Maui condo, especially one impacted by vacation rental rules, I help clients analyze zoning, risk exposure, and long-term strategy so they can make confident, informed decisions.