The Papakea Collecton: Big Island Real Estate Team

A family of four enjoying a relaxing moment in the pool at a Short-Term Vacation Rental on the Big Island of Hawaii during sunset.

Big Island STVR Laws in 2026: A Guide for Vacation Rental Owners

Stay updated on current STVR laws on the Big Island. Discover how these fluctuating regulations could impact your short-term vacation rental.

Big Island STVR Laws in 2026: A Complete Guide for Vacation Rental Owners

Short-term vacation rentals have become a major part of Hawaiʻi Island’s tourism economy. But over the past several years, local governments have introduced stricter regulations designed to balance tourism with housing availability for local residents.

If you own — or are considering buying — a vacation rental on the Big Island, understanding the current laws is essential.

In this guide, we’ll break down the latest Big Island STVR laws, zoning rules, permits, and the new county registration system so property owners and investors know exactly what to expect in 2026 and beyond.

What Is a Short-Term Vacation Rental on the Big Island?

Under Hawaiʻi County law, a Transient Vacation Rental (TVR) is generally defined as a dwelling rented for less than 180 consecutive days in exchange for payment.

This includes:

  • Entire homes listed on Airbnb or VRBO

  • Individual rooms rented to guests

  • Guesthouses or ohana units rented for short stays

Hotels, resorts, and timeshares are regulated separately and are not considered STVRs under these rules.

Where Are Vacation Rentals Legal on the Big Island?

One of the most important aspects of Big Island STVR laws is zoning.

Hawaiʻi County’s main vacation rental ordinance (Bill 108, passed in 2018) established where short-term rentals are allowed and created a system for grandfathered properties outside those zones.

Areas where vacation rentals are generally allowed

Short-term rentals are typically permitted in:

  • Resort zones

  • Resort-node areas

  • Certain commercial districts

These areas were designed to accommodate tourism and typically include condo complexes and resort communities.

Common examples include:

  • Waikoloa Beach Resort

  • Mauna Lani Resort

  • Keauhou Resort

  • many Kona oceanfront condo developments


Areas where new vacation rentals are usually NOT allowed

Most residential and agricultural zones do not allow new short-term vacation rentals.

Examples include many neighborhoods such as:

  • Kona Acres

  • Hawaiian Paradise Park

  • Volcano Village

  • Orchidland Estates

  • Captain Cook rural subdivisions

In these areas, vacation rentals are only legal if they already hold a Nonconforming Use Certificate (NUC).

What Is an NUC Permit?

A Nonconforming Use Certificate (NUC) allows a vacation rental to legally operate even if it is outside the standard zoning areas.

These permits were created when the county passed its major vacation rental law in 2018.

Important things to know about NUC permits:

  • Applications closed in 2019

  • No new NUCs are currently being issued

  • Existing permits must be renewed annually

Because the application window closed years ago, legal NUC properties are now relatively rare and often command a premium in the real estate market.

New Big Island Vacation Rental Law (Bill 47 – 2025 Update)

In 2025, Hawaiʻi County introduced one of the biggest changes to vacation rental regulations in years.

Bill 47 (Ordinance 25-50) created a new countywide registration system for short-term rentals.

The goal of the law is to increase transparency, improve tax compliance, and allow the county to better track vacation rentals operating across the island.

New Registration Requirements for Vacation Rentals

Under the new law, most short-term rentals must register with Hawaiʻi County.

Registration requirements include:

  • Property owner information

  • Tax Map Key (TMK) number

  • Bedroom count

  • Proof of tax compliance

  • Local contact information

Registration fees are expected to be:

  • $250 per year for hosted rentals

  • $500 per year for unhosted rentals

If a property changes ownership, the new owner must submit a new registration within 90 days.

Hosted vs. Unhosted Vacation Rentals

The updated rules distinguish between two types of vacation rentals.

Hosted rentals

A hosted rental occurs when the owner lives on the property during the guest’s stay.

Examples include:

  • Renting a room in your home

  • Renting an ohana while the owner occupies the main house

Unhosted rentals

Unhosted rentals are entire homes rented to guests when the owner is not present.

Most Airbnb-style properties fall into this category.

Enforcement and Platform Reporting

The new law also introduces stronger enforcement tools.

Short-term rental platforms such as Airbnb and VRBO must:

  • Register with the county

  • Submit monthly reports listing properties on their platform

  • Display registration numbers in listings

Failure to comply with these rules can lead to fines of up to $10,000 for violations.

These measures are designed to reduce illegal vacation rentals and improve tax collection.

Implementation Timeline

Although the law was originally expected to take effect in late 2025, implementation has been delayed while the county builds the registration system.

Current plans call for the registration portal to launch around July 2026.

Once implemented, owners will need to ensure their vacation rental is properly registered and compliant with zoning regulations.

Taxes for Big Island Vacation Rentals

Operating a vacation rental in Hawaiʻi also requires paying several taxes.

These typically include:

  • State Transient Accommodations Tax (TAT)

  • County TAT surcharge

  • Hawaiʻi General Excise Tax (GET)

Combined, these taxes often total around 18–19% of gross rental income depending on the county surcharge.

Failure to collect and remit these taxes can result in significant penalties.

The Future of STVR Laws on the Big Island

Like many tourist destinations around the world, Hawaiʻi is actively debating how to balance tourism with housing availability.

Across the state, policymakers are increasingly focusing on:

  • concentrating vacation rentals in resort zones

  • protecting residential neighborhoods

  • increasing enforcement against illegal rentals

While the Big Island has not taken the same aggressive approach as some other counties, regulations are likely to continue evolving in the coming years.

What Buyers Should Know Before Purchasing a Vacation Rental

One of the most common mistakes buyers make is assuming any home on the Big Island can be used as an Airbnb.

In reality, legality depends on several factors:

  • zoning designation

  • NUC permit status

  • county registration compliance

  • HOA rules for condo complexes

Before purchasing a property intended for vacation rental use, buyers should verify all applicable regulations with their real estate agent and the Hawaiʻi County Planning Department.

In the End...

Short-term vacation rentals remain an important part of the Big Island economy, but they are now heavily regulated.

Understanding the current rules — including zoning restrictions, NUC permits, and the new county registration system — is essential for property owners who want to operate legally and protect their investment.

As Hawaiʻi’s housing and tourism policies continue to evolve, staying informed will remain the key to successfully navigating the vacation rental market.

FAQ: Big Island Vacation Rental Laws

Are Airbnb rentals legal on the Big Island?

Yes, but only in certain zoning districts or for properties that hold a valid Nonconforming Use Certificate (NUC).

Can I buy a house in Kona and turn it into an Airbnb?

Not necessarily. Most residential zones do not allow new vacation rentals unless the property already has an NUC permit.

What is the new vacation rental registration law?

Bill 47 (Ordinance 25-50) requires most vacation rentals to register with Hawaiʻi County and comply with new reporting rules.

When does the new registration system begin?

The county currently plans to implement the registration system in 2026.

Vacation rental laws on Hawaiʻi Island are constantly evolving as the county updates zoning rules, registration requirements, and enforcement policies. While we strive to keep this article accurate, it may only be updated periodically and should not be relied upon as legal advice. If you are considering purchasing or operating a vacation rental on the Big Island, we strongly recommend contacting us directly so we can discuss the most current regulations and how they may apply to your specific property.

RESOURCES

County of Hawaii Planning Department – STVR Information

  • This page provides comprehensive information about the STVR regulations specific to the Big Island, including application forms, zoning maps, and permit requirements.
  • Visit the official page here

Hawaii Tourism Authority – Vacation Rental Laws

Hawaii State Department of Taxation – Tax Information for STVR Owners

  • STVR owners must comply with tax obligations, including General Excise Tax (GET) and Transient Accommodations Tax (TAT). This page provides detailed information on how to stay compliant with Hawaii’s tax laws.
  • Access the tax information here

Big Island Zoning Codes and Regulations

  • For detailed information on zoning regulations that may affect where STVRs can legally operate on the Big Island, this resource offers specific zoning codes and restrictions.
  • Explore the zoning codes here
big island realtor James morrison

About the Author

James T. morrison, R(S)

James is local realtor who has lived on Big Isand his entire life. He is proud to be Realtor and works his hardest to please his clients. 

He is a proud memeber of the Papakea Collection along side his partner, Julie Armstrong. 

Cell: (808) 339-8249

james@thepapakeacollection.com

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