How Bill 9 Is Impacting Maui Property Values

In late 2025, Maui County enacted a significant zoning law known as Bill 9, designed to reshape how short‑term vacation rentals are regulated on the island and how housing inventory is used. This legislation is already affecting market sentiment, pricing dynamics, and buyer behavior across Maui’s real estate segments, especially in condo markets historically tied to short‑term rentals.

Whether you are a Maui buyer, seller, or investor, understanding Bill 9’s impacts on property values is essential if you want to navigate the current landscape with confidence and local insight.

What Is Bill 9 and Why It Matters

Bill 9 is a Maui County ordinance aimed at phasing out transient vacation rental (TVR) use in apartment‑zoned districts, particularly those on the Minatoya List, multi‑unit buildings legally operating short‑term rentals under a grandfathered zoning exemption dating back decades. 

Under the new law:

• Bill 9 phases out TVR use in these apartment zones over a defined amortization period. 
• In West Maui, affected units may operate until January 1, 2029. 
• In the rest of Maui County, affected units may operate until January 1, 2031.
• After these dates, transient vacation rental use will no longer be permitted in those zones unless rezoning occurs. 

Bill 9 was signed into law in December 2025 with the expressed goal of returning more homes to long‑term residential use and increasing local housing stock following severe housing shortages and post‑wildfire displacement. 

Why Bill 9 Impacts Property Values in Maui

Bill 9 has created one of the biggest regulatory shifts in Maui’s recent real estate history. The fundamentals of property value are rooted in utility, demand, and future income potential. Changing how a property can be used directly affects its value.

1. Market Perception and Buyer Certainty

One of the immediate impacts of Bill 9 is increased market uncertainty in affected segments, especially condos historically operated as short‑term rentals.

Buyers placing value on rental income must now anticipate:

• Sunset of TVR rights in key segments
• Possible rezoning processes to preserve vacation rental ability
• Longer holding timelines for full amortization

This uncertainty tends to reduce willingness to pay premium prices, particularly among investor buyers, until regulatory clarity solidifies. 

2. Demand Shifts Across Property Types

Bill 9 has influenced buyer demand by shifting attention:

• Away from apartment‑zoned condos heavily reliant on vacation rental income
• Toward properties with clear long‑term residential use
• Toward hotel‑zoned condos or permitted short‑term rental homes that are not affected

This structural change has helped cushion values in segments less exposed to the phase‑out. 

3. Pressure on Condo Prices Linked to TVRs

Condo properties on the Minatoya List and similar apartment‑zoned units have experienced softening demand because their income stream tied to vacation rentals is facing eventual sunset. Some early data suggest price adjustments in certain complexes as buyers recalibrate return assumptions. 

Even if amortization dates are years away, the forward‑looking nature of real estate markets means buyers discount expected future value today.

4. Financing and Lending Impacts

Bill 9 also affects financing:

• Lenders often evaluate expected income when underwriting loans on condos targeted for investment.
• With future rental conversion uncertainty, some lenders tighten underwriting or require larger down payments.

This can further suppress buyer demand in affected inventory segments.

Short‑Term Rentals vs Long‑Term Value

TVR Income Potential Is Now Time‑Bound

For years, many Maui investors capitalized on vibrant vacation rental demand, particularly in resort and beach communities. Bill 9 now places a time limit on that income potential in apartment zones, shifting cash flow projections and investment yield models. 

Properties that once promised years of uninterrupted short‑term rental income now carry a finite horizon, which directly reduces perceived value for many investors.

Long‑Term Rental Demand May Benefit

Bill 9’s proponents argue that returning these units to long‑term housing could relieve rental pressure and support sustainable community growth. This has potential upside for:

• Renter demand in long‑term segments
• Local workforce housing availability
• Community stability and resident retention

However, transitioning usage and actual occupancy patterns will take time and additional market adjustments.

Are Some Neighborhoods More Impacted?

Yes. The impact on property values is location‑specific based on zoning, tourism demand, and local housing needs.

Most Affected

• West Maui — Lahaina, Kaanapali, Napili, Honokowai condo markets in apartment zones
• South Maui — Parts of Kihei and Wailea where apartments were operated as TVRs

Less Affected

• Hotel‑zoned condos with permitted STR use
• Single‑family homes that are not part of apartment zoning
• Permitted STR homes and bed‑and‑breakfasts outside the apartment zones

This variation underscores the need for property‑specific value assessments rather than broad market assumptions.

What This Means for Buyers

Buyers considering Maui real estate today, especially condos, should:

• Evaluate zoning and Bill 9 exposure for each property
• Assess amortization timelines and income projections
• Consider alternative strategies if rental income is part of the plan
• Work with agents experienced in zoning and regulatory nuance

Understanding where a property sits in this regulatory shift can avoid overpaying or mispricing future returns.

What This Means for Sellers

Sellers in affected segments should:

• Price with Bill 9 impact in mind
• Highlight non‑TVR strengths like long‑term rent potential or owner occupancy appeal
• Consider staged marketing strategies that target both investor and owner‑occupier audiences

Those selling outside apartment zones may find less downward pressure and a more stable buyer pool.

What This Means for Investors

Investors need to:

• Reevaluate financing assumptions in apartment‑zoned condos
• Consider repositioning into long‑term rental or owner‑occupier markets
• Understand the potential for rezoning to hotel zoning where viable

Bill 9 creates risk and opportunity, but only with thorough due diligence.

Frequently Asked Questions

Does Bill 9 ban all short‑term rentals in Maui?

No. It only phases out transient vacation rentals in apartment‑zoned districts while leaving hotel‑zoned and permitted STR homes unaffected. 

When does Bill 9 take full effect?

Phase‑outs are scheduled through 2029 in West Maui and 2031 elsewhere, although legal challenges may affect timing. 

Will property values crash because of Bill 9?

Not necessarily. Values in unaffected segments and long‑term residential markets remain strong. A targeted softening in specific condo segments may occur instead. 

Can properties be rezoned to preserve rental use?

In some cases, owners can pursue rezoning to hotel zoning, but this is not automatic and requires County approval. 

Work with The Maui Property Team Get Local, Property‑Specific Analysis

Bill 9 has changed the playing field for Maui real estate. Property value impacts are real, nuanced, and highly location dependent.

If you are buying, selling, or investing in Maui, especially condos, getting property‑specific insight from local experts is essential before making decisions.

Contact The Maui Property Team at Compass for a personalized strategy and clear evaluation of how Bill 9 affects your goals at www.mauiproperty.com.