Overview: Are Short-Term Rentals Allowed in Honolulu?

Yes, short-term rentals are allowed in Honolulu, but only in very specific and limited areas. Short-term rentals (STRs) are strictly regulated by the City and County of Honolulu and are only permitted in designated resort zones and some specific apartment-zoned areas. The city defines STRs as lodgings that provide guest accommodation for less than 30 consecutive days. These regulations are in place specifically to preserve housing for long-term residents while allowing the tourism industry to operate in appropriate areas.

Types of Permitted Short-Term Rentals

Honolulu allows two distinct types of short-term rentals:

1. Bed and Breakfast Homes (B&Bs)

• The homeowner or permanent resident must be present during the transient stay
• Maximum of two rooms may be rented
• Maximum of two adult transient occupants per room

2. Transient Vacation Units (TVUs)

• Commonly known as whole home or unhosted rentals
• Maximum of two adult transient occupants per room
• Owner does not need to be present during the rental period

3. Nonconforming Use Certificates (NUCs)

• "Grandfathered" STRs that have been operating since before October 22, 1986
• Must renew annually between September 1 and October 15
• No new NUCs are being issued

Geographic Restrictions: Where STRs Are Permitted

Short-term rentals are only permitted in the following designated areas:

Resort Zones:

1. Waikiki - The primary tourist district with high-rise buildings and hotels
2. Turtle Bay - North Shore resort area with luxury oceanfront properties
3. Ko Olina - West side resort development (primarily Beach Villas at Ko Olina for true STRs)
4. Makaha - West coast area popular with surfers
5. Hoakalei - Additional resort-zoned area

Specific Apartment-Zoned Areas:

Limited apartment-zoned areas as designated in city ordinances, with maps available through the city's STR eligibility checking tool.

Required Documents, Permits, and Licenses

Registration Requirements:

• STR Registration through the Department of Planning and Permitting
• Initial fee: $1,000
• Annual renewal fee: $500
• Certificate of Registration from Hawaii Department of Taxation
• Tax ID must be posted on online listings

Required Documentation:

• Statement of compliance (Rev. 7/2024)
• Property ownership documentation
• Attestations regarding tax compliance
• Registration summary checklist completion

Tax Registration:

• Hawaii General Excise Tax (GET) registration
• Transient Accommodations Tax (TAT) registration
• Both state and county tax obligations must be fulfilled

How to Start a Short-Term Rental Business in Honolulu

Step 1: Verify Eligibility

• Use the city's STR Eligibility Map to confirm your property is in an approved zone
• Ensure the property is in a resort zone or qualifying apartment zone

Step 2: Obtain Required Registrations

• Register with Hawaii Department of Taxation for GET and TAT
• Obtain Certificate of Registration
• Prepare all required documentation

Step 3: Submit STR Application

• Complete online STR registration through the Department of Planning and Permitting
• Include statement of compliance (Rev. 7/2024)
• Pay $1,000 initial registration fee
• Review registration summary checklist before submitting

Step 4: Tax Compliance Setup

• Set up systems to collect and remit:
  • General Excise Tax (GET): 4.5% on Oahu (4% base + 0.5% surcharge)
  • Oahu Transient Accommodations Tax (OTAT): 3%
• Post Tax ID on all online listings

Step 5: Annual Renewal

• Renew registration annually with $500 fee
• Maintain compliance with all regulations

Specific Regulations and Compliance Requirements

Occupancy Limits:

• Maximum of two adult transient occupants per room
• B&Bs limited to two rooms maximum

Duration Requirements:

• Rentals must be for less than 30 consecutive days
• Cannot exceed the 30-day threshold to maintain STR classification

Advertising Requirements:

• Tax ID must be displayed on all online listings
• Advertisements for unlawful STRs are prohibited
• All solicitation for illegal STRs is banned

Property Disclosure:

• Property sellers must provide buyers with short-term rental disclosure form
• Form indicates whether property may be legally used for STRs

Enforcement and Penalties:

• Violations can result in fines of $1,000 to $10,000 per day
• City actively issues Notices of Violation to illegal operations
• Platform liability holds rental platforms accountable for facilitating illegal transactions

Tax Obligations

State Taxes:

• General Excise Tax (GET): 4.5% on Oahu (4% base rate + 0.5% surcharge)
• Applied to gross rental income

County Taxes:

• Oahu Transient Accommodations Tax (OTAT): 3%
• Applied to all income from rental periods fewer than 180 days

Property Taxes:

• Transient Vacation Classification: 0.9% for first $1 million assessed value, 1.15% for amounts over $1 million
• Significantly higher than residential rates (0.4%/$1.14%)

Important Tax Notes:

• Platforms like Airbnb and VRBO cannot collect taxes on behalf of Hawaii hosts
• All tax obligations are the responsibility of the property owner
• Regular filing and payment required to both state and county authorities

Contact Information for Local Authorities

Primary Authority: Department of Planning and Permitting

Address: 650 South King Street, 7th Floor, Honolulu, Hawaii 96813
Phone: (808) 768-8000
Fax: (808) 768-6743

Key Personnel:

• Director: Dawn Takeuchi Apuna
• Deputy Director: Bryan Gallagher
• 2nd Deputy Director: Regina Malepeai

Online Resources:

• STR Information Portal: https://www.honolulu.gov/dpp/permitting/str/
• STR Registration System: Available through DPP website (currently under renovation)
• Request for Investigation: https://www.honolulu.gov/dpp/rfi/

Hawaii Department of Taxation:

Required for GET and TAT registration and ongoing compliance.

Useful Online Tools and Resources

City-Provided Maps and Tools:

• STR Eligibility Map: Check if property is eligible for STR registration
• STR Compliance Map: View properties with violations and legally registered properties

Important Documents:

• STR Disclosure Form (Rev. May 2025)
• Helpful Tips to Know

Governing Ordinances:

• Land Use Ordinance
• Ordinance 22-7
• Ordinance 24-14

Important Legal Considerations

Recent Legal Developments:

A federal judge has granted permanent injunction allowing existing STRs that were legally operating before Ordinance 22-7 to continue operating with 30-day minimum rentals (rather than the intended 90-day minimum) in non-resort areas. However, this only applies to properties that were operating before the ordinance took effect.

NUC Renewal Requirements:

For properties with Nonconforming Use Certificates:

• Annual renewal required between September 1 and October 15
• Renewal link provided via email in August to NUC holders only
• Failure to renew by October 15 results in automatic loss of NUC

Compliance Monitoring:

The city actively monitors compliance through:

• Online platform monitoring
• Neighbor reporting systems
• Regular inspections and investigations
• Coordination with hosting platforms

Source Links

• Primary STR Information: www.honolulu.gov/dpp/permitting/str/
• Detailed Market Analysis: www.hiestates.com/blog/oahu-vacation-rentals-rules-zoning-and-more-heading-into-2024/
• Recent Registration Updates: www.civilbeat.org/2025/05/honolulu-sees-doubling-of-vacation-rental-registrations-under-new-rules/
• Legal Background: hiappleseed.org/blog/honolulu-vacation-rental-regulation
• Recent Court Rulings: www.avalara.com/mylodgetax/en/blog/2024/01/judge-rules-honolulu-short-term-rentals-can-continue-operating.html

This comprehensive regulatory framework reflects Honolulu's commitment to balancing tourism revenue with housing preservation for local residents. The city continues to refine and enforce these regulations, making compliance essential for anyone operating or considering operating a short-term rental in Honolulu.