Performance indicators for the Hanapepe short-term rental market based on reliable data.
Listings
Reliable / Active
Cap Rate
Middle-Earners Gross Yield
Revenue
Middle-Earners Revenue
Occupancy
Middle-Earners Occupancy
Home Value
Median Home Sale Price
Top Earners
Top-Earners Revenue
The highest-performing listings in Hanapepe.
Loading top listings...
Challenging to Investors
Short‑term rentals are technically legal in Hanapepe only via existing non‑conforming use or grandfathered TVR permits, as Kauai has ceased issuing new TVR permits outside designated VDAs and Hanapepe lacks VDAs. Operators must complete county registration, ongoing annual renewals, inspections, and state/county tax compliance. This makes entry complex, expensive, and risky for new investors, significantly constraining the supply.
Local STR Agent
STR specialist · Hanapepe, HI
Hanapepe is a small historic town on the south shore of the island of Kauai, located in Kauai County, Hawaii. Home to roughly 2,700 residents, it carries the affectionate local nickname "the Biggest Little Town in Hawaii" and retains a quiet, weathered character rooted in its 19th-century sugar plantation past. The town sits along the island's southwestern coast, about 25 miles west of Lihue, Kauai's main town and county seat, and serves as a convenient base for travelers exploring the dramatic landscapes of the island's interior and west side.
Just northwest of Hanapepe, Waimea Canyon State Park — often called the Grand Canyon of the Pacific — is reached via a roughly 25- to 30-minute drive up the highway that climbs inland from the nearby town of Waimea. The park offers vivid red-rock gorges, plunging green ridgelines, seasonal waterfalls, and a series of scenic lookouts, with hiking trails descending into the canyon for visitors wanting a closer look at its varied terrain.
Continuing up the same road, Koke'e State Park lies about 45 minutes from Hanapepe, at elevations near 4,000 feet. The park encompasses cool upland forest, the misty Alaka'i Plateau, and some of the most celebrated viewpoints in Hawaii for gazing out at the Napali Coast cliffs dropping toward the Pacific. It is a favorite destination for day hikers and nature lovers seeking a different climate from the sunny coast below.
Closer to town, Salt Pond Beach Park sits only a few miles east of Hanapepe and is one of the more popular local swimming and snorkeling spots on the south shore, named for the traditional Hawaiian salt evaporation ponds that still lie just inland. The Hanapepe town center itself is a draw in its own right, with restored wooden storefronts, working artist studios, and a famous one-lane swinging footbridge that crosses the Hanapepe River. Friday evenings bring a lively art walk through the galleries and small shops, giving the town a small but genuine cultural pulse.
This blend of small-town atmosphere, plantation-era architecture, and proximity to two of Kauai's most celebrated natural attractions makes Hanapepe a compelling base for short-term rentals. Guests enjoy a quieter, more local side of the island while remaining within easy reach of the canyon's lookouts, the Napali's sweeping vistas, and the south shore's beaches and harbors.