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Is Airbnb legal in Honolulu, Hawaii?

Legal only in resort zones, $5,000/yr registration. Under Bill 41, whole-home transient vacation units are legal only in eligible resort zones such as parts of Waikiki, and each unit needs a $5,000-a-year city registration, renewable at $2,500. Investor whole-home rentals in ordinary residential neighborhoods are banned.

Showing the researched rules for Honolulu, HI below. Type your Honolulu address to jump to the verdict.

Legal with permit

Legal only in resort zones, $5,000/yr registration

Under Bill 41, whole-home transient vacation units are legal only in eligible resort zones such as parts of Waikiki, and each unit needs a $5,000-a-year city registration, renewable at $2,500. Investor whole-home rentals in ordinary residential neighborhoods are banned.

Permit and costs

Permit
Transient Vacation Unit Registration
Issued by
City and County of Honolulu, Dept. of Planning and Permitting
Cost
$5,000 initial / $2,500 renewal per year
Renewal
Annual

Key limits

Zones
Resort zones only
Occupancy
2 adult guests per bedroom
Insurance
$1M liability required
NUCs
No new non-conforming certificates issued

Taxes

State transient accommodations tax
11%
County transient accommodations tax
3%

Registration checklist

  1. 1
    Confirm resort zoning
    Verify the property sits in an eligible zone with the Department of Planning and Permitting before buying.
  2. 2
    Register the unit
    Apply on the Honolulu permitting portal with a title report, insurance certificate, tax licenses, and the informational binder, and pay $5,000.
  3. 3
    Renew annually
    Renew between 3 months and 1 month before the registration expires, at $2,500 per year.

What could change this verdict

Your HOA
Resort-zone buildings often restrict or ban transient rentals in their own documents, so read them first.
Property tax class
Transient vacation units are taxed at $9 to $11.50 per $1,000 of value, far above residential rates.

Sources

Bill 41 (2021) official text · Proper Insurance Hawaii STR laws

Rules researched October 2026. They change, so verify with the city before you buy.

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Verify before you buy. Rules change often and vary by zoning, HOA, and building type. This is a research starting point, not legal advice. Always confirm with the city's planning or business-license office before signing anything.