Bill 9 phases out short-term rentals in apartment-zoned condos beginning in 2029 in West Maui and 2031 elsewhere. Here’s what property owners and buyers should understand now.

 

Quick Answer: What Does Bill 9 Mean for Maui Condo Owners?

Bill 9 phases out the legal right for apartment-zoned condominium complexes on Maui to operate as short-term rentals.

The phase-out timeline is:

• West Maui: January 1, 2029
• South Maui and the rest of Maui County: January 1, 2031

The law does not affect hotel-zoned properties, and several lawsuits challenging Bill 9 have already been filed.

Because the legal and political situation is still evolving, owners and buyers should evaluate decisions based on:

• remaining STR income potential
• possible court outcomes
• potential financing constraints
• market pricing of regulatory risk

 

Bill 9 Impact Snapshot

At a glance, here’s how Bill 9 affects Maui condominium owners today:

Topic

What Bill 9 Does

What Owners Should Know

Short-Term Rentals

Phases out STR use in apartment-zoned condos

Hotel-zoned properties are not affected

Timeline

West Maui: Jan 1, 2029South Maui & elsewhere: Jan 1, 2031

Roughly 3 years left in West Maui and 5 years in South Maui

Legal Status Today

STR use is still legal today in affected complexes

Owners can continue operating while the law and lawsuits play out

Lawsuits

Multiple lawsuits have already been filed

Court rulings could delay, modify, or overturn parts of the law

Financing Risk

Lenders may avoid buildings involved in litigation

Some transactions could become cash-only

Housing Impact

Bill 9 does not directly create affordable housing programs

Conversion to long-term housing depends on market economics

Political Factors

2026 is an election year for mayor and council

Policy adjustments remain possible

Market Impact

Buyers are pricing policy and legal risk

Remaining STR income still has economic value

 

Bill 9 Strategy Guide: What Owners and Buyers Should Be Thinking About Now

Most of the conversation around Bill 9 has focused on politics.

But for the people who actually own — or are considering buying — these properties, the real question is much simpler:

What should I do now?

Bill 9 removes the long-standing legal right for apartment-zoned condominiums to operate as short-term rentals beginning in 2029 in West Maui and 2031 elsewhere, including South Maui.

At the same time:

  • The Maui Planning Commission has rejected proposed hotel zoning districts
  • Lawsuits challenging Bill 9 have already been filed
  • The Maui County Council could still change course
  • Mortgage lenders may become cautious if litigation expands

In other words, the situation is still evolving.

For owners and buyers, the key is understanding the possible paths forward and the risks associated with each one.

 

Bill 9 Timeline for Maui STR Condos

The phase-out does not happen tomorrow, but the clock is ticking.

The law currently states:

West Maui STR phase-out: January 1, 2029
Elsewhere in Maui County (including South Maui): January 1, 2031

That means owners potentially have roughly:

West Maui: about 3 years of remaining STR use
South Maui: about 5 years

Those remaining years of legal rental use have real economic value — but that window is gradually closing.

 

Option 1: Hold and See What Happens

Many owners are considering simply holding their property and watching how things unfold.

There are several reasons this strategy may make sense.

Lawsuits Could Change the Outcome

Multiple lawsuits have already been filed arguing that removing a long-standing legal use constitutes a regulatory taking.

Court decisions could potentially:

  • delay implementation
  • modify the law
  • require compensation
  • overturn portions of the policy

Legal challenges of this scale often take several years to resolve.

 

Political Changes Are Possible

Another factor worth watching is that 2026 is an election year for both the mayor and members of the Maui County Council.

Major policy decisions often evolve during election cycles as candidates respond to economic conditions, voter concerns, and legal developments.

While it’s impossible to predict political outcomes, elections can create opportunities for policy adjustments, delays, or alternative approaches.

 

STR Income Still Exists Today

Under the current law, these units remain legal short-term rentals for several more years.

That means owners still have:

  • rental income
  • tax deductions
  • appreciation potential

Holding may allow owners to continue benefiting from the property while waiting for more clarity.

 

Option 2: Convert to Long-Term Rental

Some owners are exploring conversion to long-term residential rental.

This option may offer:

  • stable tenant income
  • reduced management complexity
  • compliance with future zoning rules

However, current market conditions suggest that conversion may not be simple.

According to one Maui rental manager I recently spoke with, there are more than 400 long-term rental units currently being advertised, and many are struggling to find tenants.

This suggests that a rapid influx of additional units could place further pressure on rental rates.

In addition, many of the buildings affected by Bill 9 were originally designed for visitor accommodations, not traditional residential living.

Factors owners should consider include:

  • building layouts
  • limited parking
  • minimal storage
  • resort-style infrastructure
  • maintenance costs in aging oceanfront buildings

These factors may influence how well certain complexes perform as long-term residential housing.

 

Option 3: Sell Before the Market Fully Adjusts

Some owners may decide to sell earlier rather than carry the policy risk.

This strategy removes uncertainty but also raises the question of how much discount the market will apply.

 

What Risk Discount Might Buyers Expect?

There is no perfect formula, but investors typically price regulatory risk using income horizon and uncertainty.

Remaining STR income window

Owners still potentially have:

West Maui: about 3 years of STR income remaining
South Maui: about 5 years

That income stream has real value and will influence pricing.

Policy uncertainty

Investors will discount value based on the probability of:

  • zoning changes
  • legal outcomes
  • enforcement timing

Financing limitations

If condominium associations become involved in litigation against the county, lenders may stop financing purchases in those complexes.

Mortgage lenders typically avoid buildings with active lawsuits.

If that happens, transactions could become cash-only, reducing the buyer pool and potentially placing downward pressure on values.

 

Three Scenarios for Bill 9: Worst Case, Middle Case, Best Case

Because the future is uncertain, it can be helpful to think about several possible outcomes rather than assuming only one.

Worst Case Scenario

  • Bill 9 proceeds exactly as written
  • Courts uphold the law
  • Hotel zoning proposals fail
  • STR use ends in 2029/2031
  • Financing becomes more limited

Values would likely shift toward long-term residential economics rather than visitor rental income.

 

Middle Scenario

A more moderate outcome may be the most realistic.

  • Lawsuits delay or modify implementation
  • Some complexes receive hotel zoning
  • Others transition to residential use
  • The market adjusts gradually

Values may experience moderate adjustments rather than dramatic declines.

 

Best Case Scenario

  • Courts determine removing a long-standing legal use requires compensation or modification
  • Hotel zoning expands
  • STR use continues in some form

Under this outcome, values could stabilize or recover.

 

The Market Is Already Pricing the Risk

Today’s market is already evaluating these possibilities.

Buyers, sellers, lenders, and investors are all asking the same question:

What is the probability of each scenario?

That’s why pricing may feel uncertain right now.

 

Which Condo Complexes Are Affected by Bill 9?

Bill 9 applies to apartment-zoned condominium complexes that have historically had the legal right to operate as short-term rentals.

It does not apply to hotel-zoned properties.

Because zoning designations are often misunderstood, owners and buyers should verify the zoning status of any property before making decisions.

If you’re unsure whether a condo is apartment-zoned or hotel-zoned, we’re happy to help review:

  • zoning designation
  • STR eligibility
  • potential financing implications
  • resale considerations

Reach out to Aloha Group Maui, and we’ll help you understand how the current rules apply to your specific property.

We are also preparing a companion article that will include a verified list of condominium complexes affected by Bill 9.

 

Final Thoughts

These condominiums were not illegal rentals.

For decades they operated under a legally recognized framework allowing short-term rental use.

Bill 9 changes that.

But the final outcome will likely be shaped not just by legislation — but by courts, economics, elections, and time.

For some owners, patience may prove to be a strategy.

For some buyers, opportunity may exist.

But both should approach the situation with a clear understanding of the risks.

 

Aloha Group Maui Perspective

If you own one of these properties — or are considering buying one — the right decision will depend on your timeline, financial goals, and tolerance for uncertainty.

This is not a one-size-fits-all situation, and the landscape continues to evolve.

We will continue monitoring the legal, political, and market developments closely.

 

Disclaimer

This article is intended for general informational purposes only and reflects current understanding of Bill 9 and related developments at the time of publication. It should not be considered legal advice. Property owners and buyers should consult qualified legal counsel and rely on verified zoning records when making decisions regarding specific properties.