Hawaii Real Estate Experts

The Maui County Council passed Bill 88 on second and final reading, 7–2, on June 19, 2026.

Update — June 2026: On June 19, 2026, the Maui County Council approved Bill 88 on its second and final reading in a 7–2 vote, creating two new hotel zoning categories — H-3 and H-4. Bill 88 gives certain apartment-zoned short-term rentals a pathway to keep operating as the county phases out nearly half of Maui’s vacation rentals under Bill 9. Bill 88 does not automatically rezone any property — each condo community must still apply. The bill now heads to Mayor Richard Bissen for signature.

After a couple of challenging years for Maui property owners, we finally got some encouraging news. The Maui County Council has officially approved two new hotel zoning categories that could allow many of the island’s short-term rentals to keep operating. Here’s a clear, plain-language breakdown of what just happened, what it means, and what comes next.

Two Years After Bill 9, Maui Owners Get Some Good News

It has been over two years since Maui’s mayor introduced the controversial Bill 9, which aims to phase out the short-term rentals that have legally operated in apartment-zoned condos for decades. As currently written, Bill 9 would ban roughly half of Maui’s short-term rentals, with phase-out deadlines of January 1, 2029 for West Maui and January 1, 2031 for the rest of the county, including Kīhei and Wailea.

But on June 19, 2026, the Maui County Council approved a supplemental measure called Bill 88 in a strong 7–2 vote. The two no votes came from the Lānaʻi and Molokaʻi council members — neighbor islands that are part of Maui County. The bill now heads to the mayor’s desk, and Mayor Bissen has publicly supported Bill 88 and even testified in favor of it, so it appears likely to be signed into law.

So What Is Bill 88?

During the discussions around Bill 9, most council members agreed on a strategy: create two new hotel zoning categories known as H-3 and H-4. The goal is to allow a limited set of properties that would otherwise be phased out by Bill 9 — but that truly function as hotels — to be rezoned into these new categories so they can continue operating as short-term rentals.

It is crucial to understand that Bill 88 does not automatically rezone any property. Bill 88 essentially builds the door that property owners can walk through, but it doesn’t open that door yet. Each condo community will still need to go through a separate review and rezoning process to be assigned H-3 or H-4. Eligibility is limited to properties that were legally operating as transient vacation rentals before September 24, 2020.

Which Properties Could Be Rezoned First?

During the Bill 9 discussions, the council identified a list of properties they believe should be considered for rezoning — a list referred to as Exhibit 2. Exhibit 2 properties are not guaranteed to be rezoned, but they appear to have the best chance of receiving a streamlined, council-initiated review. It is still unclear exactly which properties will ultimately be offered that streamlined path, and I anticipate a lot of tense conversations between property owners, the community, and the county council before we have any real certainty on which apartment-zoned properties will actually be phased out.

How Bill 9 Has Impacted Maui Property Values

All of this uncertainty has been a real drag on Maui’s real estate market — especially the condo market. What’s genuinely interesting, though, is that even many of the more affordable hotel-zoned condos — the ones that would not be impacted by the short-term rental ban — are selling for as much as 20 to 30% below their recent peak.

For buyers, that’s the opportunity. The confusion created by Bill 9 has given buyers significantly more negotiating power than they typically have on Maui. As clarity returns, that window may begin to close.

What Comes Next for Maui Short-Term Rentals?

It is still possible that Bill 9 gets overturned in the courts entirely, which would change much of this discussion — but that process will likely take far longer than getting clarity on the potential rezoning. A few lawsuits have already been filed challenging Bill 9, with more potentially coming.

On top of that, 2026 is an election year in Maui County: the mayor and all nine county council seats are on the ballot. This will be the first real opportunity for residents to weigh in on the direction of the county, and the future of short-term rentals will certainly be part of that conversation. It’s a long road ahead, and a lot can still happen — but I remain optimistic about Maui’s future.

About the author: Jesse G. Wald is a Maui-based real estate broker ranked in the top 1% of agents nationally, with more than $150M in recent sales and over 18 years of experience. He specializes in Maui short-term rentals, condos, and Hawaii STR regulation, including Bill 9 and Bill 88. Contact: Jesse@HiRealEstateExperts.com · (808) 446-5841.

Maui Bill 88 & Short-Term Rental Ban: FAQ

What is Maui Bill 88?

Bill 88 is a Maui County ordinance, approved by the County Council 7–2 on June 19, 2026, that creates two new hotel zoning districts (H-3 and H-4). It gives certain apartment-zoned condos that legally operated as short-term rentals before September 24, 2020 a pathway to be rezoned and continue operating as vacation rentals, despite the Bill 9 phase-out.

Does Bill 88 cancel Maui’s Bill 9 short-term rental ban?

No. Bill 88 does not repeal Bill 9 and does not automatically rezone any property. Bill 9 still phases out short-term rentals in apartment-zoned condos — West Maui by January 1, 2029, and the rest of the county by January 1, 2031. Bill 88 simply creates a possible path for qualifying properties to apply for hotel zoning.

What are H-3 and H-4 zoning on Maui?

H-3 and H-4 are two new hotel zoning categories created by Bill 88. They mirror Maui’s existing apartment zoning standards but permit transient vacation rentals, allowing eligible condo properties to keep operating as short-term rentals if they are rezoned.

Which Maui condos are safe from the short-term rental ban?

Condos that are already in hotel zoning are not affected by Bill 9 and remain safe from the ban. Jesse G. Wald maintains an updated list of Maui short-term rentals for sale that are already hotel-zoned and safe from the ban at hirealestateexperts.com.

Is now a good time to buy a Maui condo?

Many Maui condos — including hotel-zoned units that are safe from the ban — are currently selling 20 to 30% below their recent peak, largely due to uncertainty created by Bill 9. This has given buyers more negotiating power than usual on Maui.

This article reflects the best available public information as of June 2026 and is provided for general informational purposes only. It is not legal advice. Owners with questions about a specific property should consult Maui County and qualified counsel.