Maui, Hawaii, continues to attract real estate investors from across the globe—and for good reason. The island offers an unparalleled mix of natural beauty, lifestyle appeal, and long-term value. Whether you’re considering a second home, a vacation rental, or a long-term hold, investing in Maui, Hawaii real estate requires local knowledge, strategic timing, and the right expectations.
Here are seven important things to know before entering Maui’s property market.
1. Understand Zoning Laws and Short-Term Rental Rules
Hawaii’s counties enforce strict zoning regulations, and Maui is no exception. Certain areas permit short-term vacation rentals (STVRs), while others prohibit them entirely. Before purchasing, it’s important to verify whether your intended use—especially if you plan to generate rental income—is allowed under county law.
The county distinguishes between hotel-zoned properties, short-term rental-approved homes, and residential homes that cannot legally be used for vacation rentals. Rules can change, so current verification is key before committing to an investment.
The county distinguishes between hotel-zoned properties, short-term rental-approved homes, and residential homes that cannot legally be used for vacation rentals. Rules can change, so current verification is key before committing to an investment.
If rental income is a primary goal, look for properties that already have:
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Short-Term Rental Home permits in place
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Hotel or apartment zoning in resort areas like Kaanapali, Wailea, or Kapalua
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Active vacation rental operations with documented income history
Working with a real estate agent familiar with zoning on each part of the island will make sure you avoid surprises after closing.
2. Factor in Higher Operating and Ownership Costs
Owning property in Maui involves costs that often exceed what investors expect. Insurance, maintenance, utilities, and HOA fees may all be higher than mainland averages due to the island’s remote location and climate exposure.
For example, oceanfront homes often require proactive upkeep due to salt air, wind, and moisture. Roofs, windows, and exterior finishes need frequent attention. If you're purchasing a condo, check the health of the association, reserve funding, and recent special assessments.
For example, oceanfront homes often require proactive upkeep due to salt air, wind, and moisture. Roofs, windows, and exterior finishes need frequent attention. If you're purchasing a condo, check the health of the association, reserve funding, and recent special assessments.
Be sure to budget for:
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Property taxes based on usage (rates differ for owner-occupants vs. investors)
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Hurricane or flood insurance in some zones
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High electricity costs if the home is not solar-powered
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Professional management fees for vacation rentals
Being realistic about expenses from the start will help align your investment goals with property performance.
3. Not All Maui Markets Are the Same
Maui includes several micro-markets, each with unique pricing, demand patterns, and investment potential. What performs well in South Maui may not behave the same way in Upcountry or the North Shore.
For investors focused on vacation rentals, resort areas like Wailea, Lahaina, and Kaanapali are typically the top picks due to their proximity to beaches, golf, and dining. For those looking at long-term appreciation or full-time occupancy, areas like Pukalani, Makawao, and Kihei offer attractive options with different price points and neighborhood vibes.
For investors focused on vacation rentals, resort areas like Wailea, Lahaina, and Kaanapali are typically the top picks due to their proximity to beaches, golf, and dining. For those looking at long-term appreciation or full-time occupancy, areas like Pukalani, Makawao, and Kihei offer attractive options with different price points and neighborhood vibes.
Choosing the right location depends on your goal:
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Income-producing short-term rental
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Long-term tenant investment
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Second home with appreciation potential
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Land purchase for future development
Maui’s varied terrain, climates, and zoning create opportunities—as long as you know where to look.
4. The Luxury Market Moves Differently
If you're looking at higher-end properties, be aware that the luxury market operates on its own cycle. Properties over $3 million may take longer to sell or have different seasonal patterns. At the same time, they often see stronger appreciation over time, especially when located in desirable resort communities.
Buyers entering the luxury segment should prioritize quality of construction, view orientation, and scarcity of location. Ocean views, privacy, and architectural design hold value over time. Maui’s luxury buyers often pay in cash, so having competitive financing or liquidity is a must if you're entering this space.
Buyers entering the luxury segment should prioritize quality of construction, view orientation, and scarcity of location. Ocean views, privacy, and architectural design hold value over time. Maui’s luxury buyers often pay in cash, so having competitive financing or liquidity is a must if you're entering this space.
5. Property Management Is Essential for Remote Investors
If you don’t live on Maui full-time, professional property management isn’t optional—it’s necessary. From coordinating maintenance and cleaning to handling guest communication or tenant screening, a trusted local team makes a major difference.
Consider whether you need:
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A full-service vacation rental manager to oversee bookings, turnover, and licensing
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A long-term rental property manager to handle leases and repairs
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A caretaker or estate manager for luxury homes or second residences
Strong management not only protects your investment but also improves your property's performance and guest satisfaction, especially if you’re running a short-term rental business.
6. Financing Can Take Longer and May Require Local Lenders
Securing financing for a property in Maui can take longer than expected, especially for condos classified as “condotels” or mixed-use developments. Many national lenders won’t finance these properties, which may require a local bank or lender familiar with the Hawaii market.
To stay competitive, especially in multiple-offer situations, you’ll want to:
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Get pre-approved with a Hawaii-based lender familiar with local property types
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Work with an agent who can flag lending limitations before you make an offer
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Be prepared for appraisal delays and provide documentation early
If you’re paying cash, you’ll have more flexibility—but even then, a local title and escrow company is essential to guide you through the closing process.
7. Work with a Real Estate Agent Who Knows Maui
No matter how experienced you are as a buyer or investor, Maui is a specialized market with unique dynamics. Partnering with a real estate agent who lives and works full-time on the island makes a significant difference.
A strong agent will help you:
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Understand which properties are legal vacation rentals
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Analyze cash flow and operating costs
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Navigate cultural and environmental considerations unique to Hawaii
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Gain early access to off-market or coming-soon listings
Maui’s real estate opportunities are significant—but the margin for error is higher without expert guidance. The right agent can help you spot red flags early and position your offer for success.
Reach Out to the Ohana Real Estate Team
The Ohana Real Estate Team is dedicated to helping investors succeed in Maui’s real estate market. Whether you're purchasing a vacation rental, a luxury estate, or a second home, their team offers expert insight and local experience that helps you move confidently and strategically.
They understand the complexity of zoning, rental income potential, and property performance across different areas of the island. The Ohana Real Estate Team works with both local and remote clients to match them with properties that align with their investment goals. If you're planning to invest in Maui real estate, they are ready to help you take the next step with clarity and confidence.
They understand the complexity of zoning, rental income potential, and property performance across different areas of the island. The Ohana Real Estate Team works with both local and remote clients to match them with properties that align with their investment goals. If you're planning to invest in Maui real estate, they are ready to help you take the next step with clarity and confidence.