Aloha to Airbnb
Maui County voted to turn thousands of vacation condos back into homes. It may be the largest forced conversion of short-term rentals any American county has attempted — and a test of whether zoning can undo two decades of a market built on an exemption.
A council chooses homes over rentals
On December 15, 2025, Mayor Richard Bissen signed Bill 9 into law as Ordinance 5909. The Maui County Council had passed it 5–3 on final reading. The measure’s core is simple: it ends transient vacation-rental use in the county’s apartment-zoned (A-1 and A-2) districts and sets a date when the hosting has to stop. In West Maui, that date is January 1, 2029. Everywhere else in the county, it is January 1, 2031.
The scale is what makes it national news. As of May 2024, about 6,208 units on the county’s “Minatoya list” were operating as short-term rentals. Bill 9 does not tax them or cap them. It rezones them out of the tourist business and tells their owners to find a long-term tenant, sell, or move in.
What the Minatoya list was
To understand the fight, start with the exemption it closes. For roughly two decades, condos in apartment zones were allowed to rent to visitors under a legal opinion — the “Minatoya” exemption — that grandfathered them into short-term use the zoning code otherwise reserved for hotels. The list of those units grew into a shadow hotel district scattered across residential buildings. Bill 9 repeals the exemption outright.
For an owner, the stakes are concrete. Many bought a Kihei or Lahaina condo as retirement income, priced the nightly rate into a mortgage, and have run it legally for years. The bill does not compensate them; it changes what the property is allowed to be. The other side is just as tangible: those same buildings sit in zones the code always called residential, and Maui has among the tightest housing markets in the country. The council decided the zoning label should mean what it says.
A vacation rental is a home with the tenancy priced by the night. Zoning is the argument over which one an island can afford.
Then the council built an off-ramp
The story did not end with Bill 9. In June 2026, the same council passed Bill 88 by 7–2 and sent it to Mayor Bissen — who had championed Bill 9 and backed this one too. Bill 88 creates new H-3 and H-4 hotel-zoning districts and offers roughly 4,500 grandfathered units at about 104 properties an opt-in path to keep renting to visitors.
Critics called it a retreat, the phase-out losing its nerve within months. The council’s defense was triage: the properties that qualify are the ones that most resemble hotels already — purpose-built for visitors, poorly suited to long-term tenants — and moving them into an honest hotel zone lets the residential buildings go back to being residential. The reprieve is real, but it is a fraction of the 6,208on the clock. The path was contested inside the county’s own process: Maui’s planning commissions recommended against the new hotel zoning, and the council committee advanced it 6–1 over that objection before the 7–2 floor vote.
The ledger, in forecasts
Both sides argue in figures, and the figures are projections, not tallies of what has already happened. Opponents point to a UHERO-type estimate that phasing out the rentals could cost the island roughly $900 million a year in visitor spending — about 15% — along with some 1,900 jobs and about $60 million a year in property-tax revenue by 2029. These are forecasts, and forecasts of a market reacting to a law that has not fully taken effect carry wide error bars.
Housing advocates answer with a different figure: between 85% and 94% of the affected short-term-rental owners are off-island. In that framing, much of the lost visitor spending is income leaving Maui anyway, and the units are homes held out of a market where the people who clean the condos struggle to rent one. Neither number settles the question. The revenue is real and so is the shortage; the council weighed a housing shortage it could see against an economic loss it could only forecast, and chose the housing.
The context nobody on the island forgets
All of this lands two years after the August 2023 Lahaina fire, which destroyed much of Lahaina and pushed West Maui’s housing shortage from chronic to acute. That is why West Maui sits on the earlier January 1, 2029 clock while the rest of the county has until January 1, 2031. The disaster reframed a long zoning argument as a question about where displaced residents would live.
What Maui is attempting has no clean precedent: unwinding a tourist-rental market the size of a mid-range hotel chain by rezoning it, one apartment district at a time. Whether owners convert, sell, sue, or wait out the clock is the story of the next four years. You can follow it in the council’s own record through Hamlet’s archive of Maui County sessions, where the votes, the testimony, and the amendments are logged meeting by meeting.
How we reported this
The two bills: Bill 9 (2025) is the phase-out: it repeals the Minatoya exemption and ends transient vacation-rental use in apartment-zoned A-1/A-2 districts, with cutoffs of January 1, 2029 in West Maui and January 1, 2031 elsewhere. It passed the council 5–3 and was signed as Ordinance 5909 on December 15, 2025. Bill 88 (2026) is a separate, later measure creating H-3/H-4 hotel-zoning districts as an opt-in path for roughly 4,500 grandfathered units at about 104 properties; over the opposition of the county's planning commissions, it cleared the council committee 6–1 and passed 7–2 in June 2026, per Maui Now.
The unit count: The figure of about 6,208 Minatoya-listed units operating as short-term rentals reflects county data as of May 2024, as reported by Maui Now, Hawaiʻi Public Radio, and Honolulu Civil Beat.
Meeting record: The May 26, 2026 testimony is quoted from the Maui County committee video recording published via Granicus (clip 2440), linked at its timestamp. The speaker's affiliation is as stated on the record; the quoted testimony is in support of Bill 88, the reprieve.
Economic figures: The roughly $900 million/year (~15%) in visitor spending, about 1,900 jobs, and roughly $60 million/year in property-tax revenue by 2029 are projections of a UHERO-type economic model, presented by opponents as estimates, not as realized losses. Off-island ownership estimates range from 85% (owners with an out-of-state mailing address, per UHERO) to 94% (owners who live out of state); the higher end is cited by housing advocates. We present both without endorsing either forecast.
Limitations: This is a portrait of a policy at the moment it takes shape, not a forecast of its results. A widely circulated opposition ad campaign was disavowed by the Maui Vacation Rental Association and the Travel Technology Association, and Airbnb said it did not fund it; we do not attribute that campaign to any of them. Whether owners convert, sell, or challenge the ordinances is not yet on the record.
Enjoying The District?
Get data-driven local government stories in your inbox every week. Free, no spam.
Search Maui's meetings on HamletSources & Data
All claims in this article are grounded in public records, government data, and independent reporting.
- Mayor Bissen signs Bill 9 into law; Maui Council passes it 5–3 on final readingMaui Now
- Maui County passes historic law to phase out thousands of vacation rentalsHawaiʻi Public Radio
- Maui Vacation Rental Bill That Divided Community Is Signed Into LawHonolulu Civil Beat
- New hotel zoning for vacation rentals passes Maui Council on final vote, 7–2Maui Now
- New hotel zoning clears Council committee, 6–1, despite planning commissions' oppositionMaui Now
- Maui Mayor Bissen signs short-term rental conversion billHonolulu Star-Advertiser
- Maui County Council — meeting recordsHamlet