Hawaii is one of the most heavily regulated vacation rental markets in the country. Each county decides where nightly rentals are legal, and recent laws have narrowed the options, especially on Oahu and Maui.
In short: You can finance a Hawaii Airbnb or VRBO property with a DSCR loan from LendingStreet, and on some programs the property qualifies on projected short-term rental income instead of a long-term lease. Loans start at $150,000 with no stated maximum, the minimum credit score is 620 and there are no W-2s or tax returns. In practice, most investor financing goes to condos in resort-zoned areas or to properties with an existing county permit.
On Oahu, nightly rentals are largely confined to resort-zoned areas such as parts of Waikiki, Ko Olina and Turtle Bay, plus a limited number of properties with older nonconforming use certificates. On the Big Island, Kona and the Waikoloa and Mauna Lani resort areas are the main markets, and the county registers vacation rentals by zone.
Kauai allows transient vacation rentals mainly within designated visitor destination areas such as Poipu and Princeville. Maui has the most change underway: the county has adopted a phase-out of vacation rentals in many apartment-zoned condo buildings in West and South Maui, while hotel-zoned resort properties are treated differently.
| Market | Who books | What to check |
|---|---|---|
| Waikiki resort zone | Visitors from the mainland and Asia | Resort zoning, condo rules |
| Kona and Waikoloa | Families, golfers | County registration by zone |
| Poipu and Princeville | Beach and resort visitors | Visitor destination area status |
| Maui resort areas | Families, couples | Zoning class and phase-out status |
Outside resort zones, Honolulu does not allow rentals shorter than 30 days, and the city has pursued a longer minimum stay. A 2024 state law gave counties more authority to phase out vacation rentals, and Maui used it to adopt a phase-out of vacation rentals in apartment-zoned buildings. Rules and litigation continue to evolve.
Before buying, confirm the exact zoning, whether the unit has a county permit or certificate, and what the condo association allows. A resort condo with a clear legal status is the most financeable kind of Hawaii vacation rental.
The ratio is simple: monthly income divided by the monthly payment, where the payment includes principal, interest, taxes, insurance and HOA dues. What changes on a short-term rental is the income figure. Some programs accept a projection of nightly-rental revenue from a third-party data provider; others lean on 12 months of booking history.
A ratio of 1.0x or better meets the standard minimum, and some programs go below it. Leverage tops out at 80% LTV on a purchase and 75% on a cash-out refinance, but short-term rental programs and bigger balances can be lower, so it varies by program. No W-2s, a 620 minimum score, LLC borrowers welcome and terms up to 30 years. The program covers one to eight units, which includes duplexes and small cottage groups; nine units or more is handled as commercial.
Hawaii charges general excise tax on rental income plus a state transient accommodations tax and a county transient accommodations tax. Operators register with the Department of Taxation and often must display their tax ID in listings. Platforms collect some of these taxes, but owners remain responsible for compliance.
Hawaii counties tax vacation rentals in their own property tax classes, often at higher figures than owner-occupied homes, so the seller's bill may not reflect what you will owe. Check the county's current class for the unit.
Resort condo dues are high because they cover building insurance, maintenance, amenities and sometimes utilities, and they go straight into the ratio. Hurricane coverage and flood insurance in low-lying areas add to the cost. Some buildings sit on leasehold land, which needs separate review.
This example is illustrative and not a quote. An investor buys a two-bedroom condo in a Kona-area resort complex zoned for vacation rentals for $750,000. A projection for comparable units shows $74,000 a year in gross revenue. At 75% LTV the loan is $562,500, and estimated principal and interest on a 30-year term is about $3,933 a month. Add $310 in taxes, $60 in insurance and $1,150 in HOA dues, and the payment is about $5,453. $6,167 of average monthly revenue divided by that payment gives a DSCR of about 1.13x.
If the projection came in lower, the investor could borrow less. At 70% LTV the loan is $525,000, the payment about $5,191 and the DSCR about 1.19x, with $37,500 more brought to closing. The HOA line is the reason Hawaii ratios run tight. Dues that include the master insurance policy can exceed the tax and insurance lines combined, so compare buildings on total monthly cost.
| Item | Amount |
|---|---|
| Purchase price | $750,000 |
| Loan amount at 75% LTV | $562,500 |
| Down payment | $187,500 |
| Projected annual revenue | $74,000 |
| Average monthly revenue | $6,167 |
| Estimated principal and interest (30-year) | $3,933 |
| Property taxes | $310 |
| Insurance | $60 |
| HOA dues | $1,150 |
| Total monthly payment | $5,453 |
| DSCR | About 1.13x |
Hawaii demand is more even across the year than most mainland vacation markets, with peaks around winter holidays, spring break and summer, and softer months in late spring and fall. Visitor counts on Maui changed after the 2023 Lahaina wildfire, so projections there should rely on recent data. Use comparables from the same resort or zone.
A complete file moves faster. Gather these before you apply:
Our investor loans are business-purpose loans on non-owner-occupied property. Share the address, the price, a revenue projection and how much leverage you want. We run the ratio on realistic taxes and insurance and come back with a few structures, plus a refinance path once the property has a booking history of its own.
We lend on Oahu, the Big Island, Kauai and Maui where a property's legal vacation rental status is clear. Reach us at (877) 298-1001, or get a quote through the form below.
No. Each county limits nightly rentals to certain zones or permitted properties. Outside resort zones, Oahu does not allow rentals under 30 days.
Maui has adopted a phase-out of vacation rentals in many apartment-zoned buildings. Confirm a building's zoning and the applicable dates before buying.
General excise tax, the state transient accommodations tax and a county transient accommodations tax, plus property tax in the county's vacation rental class.
Some programs allow it with enough lease term remaining. Leasehold units need separate review.
Not on every program. Some qualify a short-term rental on projected nightly revenue or on its booking history instead of a 12-month lease.
Yes. Once you have booking history, a rate-and-term or cash-out refinance can use actual revenue. Our STR refinance guide, linked below, covers how that works.
No. Our investor loans are business-purpose loans on non-owner-occupied property only, so primary and second homes are out.
Timing depends mostly on the appraisal, title and insurance. A complete file with the revenue projection, permit confirmation and insurance quote in hand moves fastest.
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