Central Maui is where the island lives and works: the airport, the harbor, Maui Memorial Medical Center, UH Maui College and the big-box retail along Dairy Road. That makes Kahului and Wailuku long-term rental markets first, and a DSCR loan qualifies the property on that lease income.
In short: LendingStreet finances 1-8 unit rentals in Kahului, Wailuku and across Maui with DSCR loans that qualify on the property's rent instead of your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x with a 620 minimum credit score. On Maui, the ohana unit, the county tax class and the insurance quote usually decide how the numbers land.
Kahului itself is mostly post-war single-family neighborhoods, including the Dream City subdivisions that went up from the 1950s onward, plus newer homes in Maui Lani near the golf course. Wailuku mixes the old town core around Market Street with hillside homes in Wailuku Heights and newer master-planned streets in Kehalani and Waikapu.
Beyond Central Maui, the same metro takes in Kihei's condo and single-family streets, Upcountry towns such as Pukalani, Makawao and Kula, the North Shore around Paia and Haiku, and West Maui, where Lahaina is rebuilding after the August 2023 wildfire. Each area rents to a different tenant, and lenders look at each one differently.
For long-term rentals, Central Maui is the steadiest base. Tenants are nurses, airport and harbor workers, county staff, teachers and families who were displaced by the fire and need year-round housing.
| Area | Typical rental stock | What to check |
|---|---|---|
| Kahului (Dream City, Maui Lani) | Single-family homes, many with ohana units | Permits on additions and ohana conversions |
| Wailuku and Waikapu | Older town homes, Kehalani and Waikapu subdivisions | HOA leasing rules in newer subdivisions |
| Kihei | Condos and single-family homes | Apartment-district zoning and STR status |
| Upcountry (Pukalani, Makawao, Kula) | Larger lots, older homes | Water meter, cesspool or septic, longer commutes |
| West Maui | Rebuild lots and surviving homes | Rebuild permits and insurance availability |
DSCR is the property's monthly rent divided by its monthly housing payment: principal and interest, property taxes, insurance and any HOA or AOAO dues. At 1.0x, rent covers the payment. Our programs qualify on that ratio, so self-employed owners, retirees and investors with complicated returns do not need to document personal income.
LLC borrowers are standard, 30-year terms are available and you can buy or refinance. If a Maui property runs just under 1.0x, sub-1.0 DSCR programs exist for some borrowers; see /sub-1-dscr-loan.html.
Many Central Maui lots carry a second dwelling, often called an ohana or accessory dwelling. When both units are legal and leased, the combined rent can count toward the ratio, which is often what turns a Kahului home into a workable rental.
The catch is permits. Garage conversions and back-lot additions built without permits are common on older Maui homes. An appraiser may give no value or rent to space the county has no record of, so pull the permit history from the county before you write an offer.
This example is illustrative and not a quote. An investor buys a Kahului single-family home with a permitted ohana for $985,000. The main house leases for $4,300 a month and the ohana for $2,000, for $6,300 of combined rent.
At 75% LTV the loan is $738,750. Estimated principal and interest on a 30-year term is about $5,040. Property taxes in the long-term rental class are budgeted at $310 a month and a hurricane-inclusive insurance policy at $365. The total payment is about $5,715, and DSCR is about 1.10x.
Without the ohana rent, DSCR would be about 0.75x, which is why the permit check matters on this kind of file.
| Item | Monthly |
|---|---|
| Combined rent (house + ohana) | $6,300 |
| Estimated principal and interest | $5,040 |
| Property taxes | $310 |
| Insurance | $365 |
| Total payment | $5,715 |
| DSCR | 1.10x |
Maui County taxes real property by use class, and rates differ between owner-occupied homes, non-owner-occupied homes, long-term rentals and short-term rentals. A home leased to a year-round tenant may qualify for the long-term rental class, which is generally cheaper than the non-owner-occupied class. Confirm the class and the filing deadline with the county Real Property Assessment Division and budget on the class you will actually qualify for.
Hawaii also charges a state conveyance tax on transfers that rises with price and is higher on many sales to buyers who will not live in the home. It is customarily a seller cost, but it matters on your exit. Rental income is subject to Hawaii general excise tax, which is an operating cost rather than part of the DSCR payment. Ask your escrow officer and tax advisor for current figures.
Maui is one of the hardest places in the country to start a new vacation rental. Single-family short-term rental home permits are capped by community plan area, and in late 2024 the county enacted a law to phase out vacation rental use in apartment-zoned districts, which covers many Kihei and West Maui condos. Legal challenges followed, so check current status with the county.
For most Kahului and Wailuku properties, underwrite on a 12-month lease. If you already hold a permitted STR elsewhere on the island, our short-term rental programs can qualify on projected revenue; start at /str.html.
Insurance quotes on Maui have climbed since the Lahaina fire, and many condo associations have raised dues to cover master policy increases. Get a quote early and include any AOAO dues in the payment.
Much of Kahului's older stock is wood-frame, sometimes single-wall construction, so termite inspections are routine. Homes near Kahului Harbor and low coastal areas may fall in flood zones, which adds a flood policy to the payment.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent for each unit and target leverage through the form below or call (877) 298-1001. The team will run the ratio with a realistic tax class and insurance figure and come back with options. For statewide context, see our Hawaii DSCR page.
Yes, when the ohana is a legal, permitted dwelling and the rent can be supported by a lease or market rent analysis. Unpermitted units may get no credit.
DSCR loans start at $150,000 with no stated maximum. Given Maui prices, most Central Maui purchases are well above the minimum.
No. The loan qualifies on the property's rent. We look at credit, reserves and the property, not your W-2s or tax returns.
Often, if the association and building meet program rules and the unit is leased or rentable long-term. Check the building's zoning and STR status and include AOAO dues in the payment.
The class you will actually qualify for. A year-round lease may qualify for Maui County's long-term rental class; confirm requirements and deadlines with the county.
Completed, habitable rentals can qualify like anywhere else. A burned lot is not a DSCR rental; that is a construction question, covered on our Kahului construction page.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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