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Can You Vacation Rent on Molokai? The Rules in 2026

Posted by benjamen.harper@gmail.com on October 28, 2026
Hawaii Real Estate, Molokai
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A lot of people look at Molokai’s prices and think about buying a place to rent out to visitors. Before you do, you should know that Molokai has the strictest vacation rental rules in Hawaii.

Short-term rental homes: none allowed

In 2020 Maui County set Molokai’s cap on short-term rental home (STRH) permits to zero. The permits that existed then were allowed to run out at the end of 2020. In Maui County’s most recent permit count (October 2024), Molokai still shows as “not allowed” with zero permits.

A group of owners sued in federal court in 2020. The judge paused the federal case so a state court could decide the state-law questions first. We haven’t found any ruling that overturned the ban, so for planning purposes, assume you can’t get a vacation rental permit for a house on Molokai.

Bed and breakfasts: a small exception

A bed and breakfast is different from a vacation rental. The owner has to live in the home, and there are limits on size. As of mid-2026, Ordinance 6014 caps Molokai at five B&Bs total:

  • 1 east of Kawela Stream
  • 2 in Kaunakakai
  • 2 on the west end, including the Kaluakoi and Kalae areas

They also have to be at least 3,000 feet apart, and new Molokai applications go to the Molokai Planning Commission. In October 2024 the island had one permitted B&B. In other words, it’s possible, but don’t count on it.

Condos: Bill 9 and the 2031 deadline

For years some Molokai condos could rent to visitors because of an old exemption for apartment-zoned buildings, known as the Minatoya list. Bill 9, signed in December 2025, ends that exemption across Maui County. West Maui condos lose it at the start of 2029. Everywhere else, including Molokai, it ends January 1, 2031.

Wavecrest and Ke Nani Kai are the two Molokai complexes reported to be affected. Two lawsuits challenging Bill 9 were filed in Maui Circuit Court in December 2025, but as of now the deadline stands.

On Maui, some buildings can avoid the phase-out by rezoning into new hotel districts (Bill 88, passed June 2026). When that bill was in committee, the Council voted to leave Molokai out. If that held in the final version, Molokai’s affected condos don’t have that option.

What about the other condos?

Molokai has a few other complexes, such as Paniolo Hale, Kaluakoi Villas and Molokai Shores. Whether a unit in one of them can legally rent for under 30 days depends on its zoning and the building’s own rules. Some listings say a unit is “currently operating as a short-term rental.” That’s not the same as being legal after 2031. Get it checked before you write an offer.

Taxes if you rent

Maui County taxes vacation rental property at much higher rates: $13.00 per $1,000 of value up to $900,000 for the 2026-27 tax year, compared with $1.65 for an owner-occupied home. Long-term rentals have their own, lower rate, starting at $2.90.

Bottom line

If you’re buying on Molokai, buy because you want to live there or rent to local families long term. A visitor-rental plan is a long shot for houses and has an end date for most condos.

If you’re thinking about buying or selling on Molokai, start with our Molokai real estate guide, or send a note below and we’ll get back to you.

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