Kahului is where Maui works: the airport, the harbor, the big-box stores and most of the island's year-round rental housing. It is not where Maui's legal vacation rentals are, and any honest STR conversation here starts with that.
In short: LendingStreet finances Maui short-term rentals with DSCR loans that, on some programs, qualify on projected nightly revenue, but only for properties that can legally operate as transient rentals. In Kahului's residential neighborhoods, new investor-owned vacation rentals are generally not allowed without a scarce county permit, so most Maui STR loans are on condos in hotel- or resort-zoned projects in South and West Maui. Loans start at $150,000 with no stated maximum, the minimum credit score is 620, LLC borrowers are standard and leverage on high-HOA condos is often below the 80% LTV purchase maximum.
Maui County generally prohibits transient vacation rentals in residential and agricultural districts unless the owner holds a short-term rental home permit or a bed and breakfast permit. Those permits are capped by community plan area, limited in number and require public notice and review. In the Wailuku-Kahului area, investors should not plan on getting one for a newly purchased house.
Kahului's housing, from the original Dream City neighborhoods to newer subdivisions in Maui Lani, is overwhelmingly occupied by people who live and work on the island. That is the market a DSCR loan on a long-term lease serves well, and our Kahului DSCR page covers it.
For decades, many condo complexes in apartment-zoned districts in West and South Maui were allowed to rent nightly under an older exception. In late 2024 Maui County adopted Bill 9, which phases out transient rentals in those apartment districts over the next several years, with West Maui scheduled first. Legal challenges and amendments are possible, so check the current status before you buy.
For a lender, a condo whose nightly use ends in a few years is valued and underwritten very differently from one in a hotel- or resort-zoned project where transient use is permitted outright. Ask the association and the county Planning Department which category a complex falls in, and get it in writing if you can.
| Location type | Nightly rentals | How we look at it |
|---|---|---|
| Kahului and Wailuku residential lots | Generally not allowed without a capped permit | Long-term lease DSCR |
| Upcountry and agricultural land | Generally not allowed without a permit | Long-term lease DSCR |
| Apartment-zoned condos affected by Bill 9 | Being phased out | Long-term rents, case by case |
| Hotel- or resort-zoned condos | Generally permitted | Projected STR revenue on some programs |
Most legal nightly rentals on Maui are condos and some homes in hotel- or resort-zoned areas: Kaanapali and Kapalua in West Maui, Wailea and parts of Kihei and Makena in South Maui, and a handful of other projects. Some properties also hold valid short-term rental home permits, which in general run with the owner and need renewal; confirm whether a permit can continue after a sale before you rely on it.
Because the legal inventory is limited, prices for permitted units are high and association dues often cover resort amenities, front desks and building insurance. Those dues weigh heavily on the ratio.
Transient rentals in Hawaii owe the state general excise tax (GET), the state transient accommodations tax (TAT) and Maui County's own TAT. Operators need a Hawaii tax license, and listings must display the tax ID. Maui County also classifies property for real property tax, and the short-term rental classification carries a higher rate than the long-term rental or owner-occupied classes.
Hawaii's conveyance tax on sales is graduated by price and higher for buyers who will not live in the property. Budget all of these, and confirm current rates with the state Department of Taxation and the county, since they have changed several times in recent years.
On some programs, a permitted Maui STR can qualify on projected short-term revenue, often a third-party projection for the unit or the complex, compared with the full payment: principal, interest, taxes, insurance and association dues. Booking history from the seller helps support the projection. If the projection comes in low, our guide to low revenue projections walks through the options.
This example is illustrative and not a quote. An investor buys a two-bedroom condo in a resort-zoned West Maui project for $1,050,000. A projection shows average gross revenue of $9,500 a month. Association dues are $1,400, short-term rental class property tax is budgeted at $650 and an interior condo policy at $80.
At 70% LTV the loan is $735,000 and estimated principal and interest on a 30-year loan is about $4,890. The total payment is about $7,020 and DSCR on projected revenue is about 1.35x. If revenue comes in 25% lower, at $7,125, the ratio is about 1.01x, just above 1.0x. The large association dues are why leverage here usually sits below the maximum.
| Item | Projected revenue | Revenue cut 25% |
|---|---|---|
| Loan amount (70% LTV) | $735,000 | $735,000 |
| Estimated principal and interest | $4,890 | $4,890 |
| Property tax (STR class) | $650 | $650 |
| Association dues | $1,400 | $1,400 |
| Interior condo insurance | $80 | $80 |
| Total monthly payment | $7,020 | $7,020 |
| Monthly revenue used | $9,500 | $7,125 |
| DSCR | About 1.35x | About 1.01x |
Maui's visitor calendar peaks in winter and early summer, with whale season from December through April. The August 2023 wildfires in Lahaina and Kula changed the island's visitor patterns and its insurance market, and some associations have faced sharp increases in master policy premiums and special assessments.
Ask for the association's budget, reserve study, insurance renewal and any pending assessments. A rising dues bill can turn a workable ratio into a short one.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the unit address, the complex name, zoning and permit details, the price and any booking history or projection. The team will confirm the legal path first, then run the ratio. Call (877) 298-1001 or use the form below. For the rest of the state, see our Hawaii short-term rental page.
Generally not. Maui County restricts transient rentals in residential districts unless the owner holds a capped short-term rental home permit, and those are scarce in the Wailuku-Kahului area.
A 2024 county law that phases out transient rentals in apartment-zoned condo districts in West and South Maui over several years. Hotel- and resort-zoned projects are treated differently. Check the current status before buying.
Mainly units in hotel- or resort-zoned projects in areas like Kaanapali, Kapalua and Wailea. Confirm the zoning and association rules for the specific complex.
Not necessarily. Maui County's definition of a transient rental covers stays longer than 30 days, so confirm the current minimum term with the county before planning furnished mid-term rentals.
State general excise tax, state transient accommodations tax and Maui County's TAT, plus the higher short-term rental property tax classification.
Yes. Dues are part of the monthly payment, and on resort condos they are often large enough to reduce leverage.
Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be run as an investment, not as your residence.
Leasehold units need extra review of the ground lease term and payments. Fee simple units are simpler to finance.
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