Naalehu, HI

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Naalehu short-term rental market based on reliable data.

Listings

48 / 88

Reliable / Active

Cap Rate

6%

Middle-Earners Gross Yield

Revenue

$23,964

Middle-Earners Revenue

Occupancy

58%

Middle-Earners Occupancy

Home Value

$405,128

Median Home Sale Price

Top Earners

$49,908

Top-Earners Revenue

Naalehu

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Naalehu.

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C

Challenging to Investors

Naalehu Regulations

STRs are technically legal but heavily constrained—prohibited in residential/agricultural zones except for pre‑2018 Nonconforming Use Certificates, with new permits only available in resort/commercial zones, strict permitting/renewal and operational standards, and an enforcement focus that preserves housing, creating significant investor risk.

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About Naalehu

Naalehu is a small rural community in the Ka'u District on the southern flank of the Big Island of Hawaii, in Hawaii County. With a population of roughly 1,000 residents, it has the laid-back feel of an old sugar-plantation town and serves as the main commercial hub for the sparsely populated southern tip of the island. Travelers pass through on the way to some of the Big Island's most dramatic landscapes, and the town is widely recognized as the southernmost community in the United States along a paved highway. It sits along Route 11, the Mamalahoa Highway, about 75 miles southwest of Hilo, the island's largest city, and roughly 60 miles southeast of Kailua-Kona.

About 30 miles to the northeast along the highway, Hawaii Volcanoes National Park showcases two of the world's most accessible active volcanoes, Kilauea and Mauna Loa, along with lava tubes, steaming craters, and rainforest trails. The park is the single biggest draw for visitors to the southern end of the island, and many guests use Naalehu as a quiet overnight base rather than commuting from Hilo or Kona. The drive winds upward through pastureland and ohia forest, with pull-offs for views across the Ka'u coastline.

Just a few minutes south of town, Punalu'u Black Sand Beach is one of the most photographed shorelines in Hawaii. The jet-black sand is created by lava flowing into the ocean and breaking apart, and the calm cove frequently draws endangered Hawaiian green sea turtles that haul out to rest on the warm shore. Facilities include restrooms, picnic areas, and a freshwater spring, making it an easy stop for travelers heading in either direction along the coast.

About 10 miles southwest of Naalehu, South Point, known in Hawaiian as Ka Lae, marks the southernmost point of land in the United States. The windswept bluff features a tall lighthouse, ancient Hawaiian ruins, and a famous clifftop windmill. From here, a rugged four-wheel-drive road or a roughly three-mile hike leads to Papakōlea Beach, one of only a handful of green sand beaches in the world, colored by olivine crystals eroded from the surrounding cinder cone. The area is a favorite for experienced surfers and freedivers drawn to deep, clear offshore currents.

Surrounded by coffee farms, macadamia orchards, and working cattle ranches, Naalehu offers short-term-rental guests a taste of authentic rural Hawaii that has largely disappeared from busier resort areas. With Hawaii Volcanoes National Park to the northeast, black and green sand beaches to the south, and a string of scenic overlooks in between, it combines the tranquility of small-town country living with some of the most geologically fascinating terrain in the Pacific.

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