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Lanai Vacation Rental Rules: Permits, B&B Caps and Bill 9

Posted by benjamen.harper@gmail.com on October 28, 2026
Hawaii Real Estate, Lanai
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Lanai does allow some vacation rentals, unlike Molokai, but there aren’t many permits and they’re spread thin on purpose.

Short-term rental home permits

Maui County caps short-term rental home (STRH) permits on Lanai at 15. As of October 2024, the most recent count we’ve found, 11 had been issued. When the cap is full, new applicants have to wait for a permit to open up.

Lanai also has a spacing rule: no more than one STRH or B&B within a 300-foot radius of another, or on the same block. So even with open permits, a house next door to an existing rental likely won’t qualify.

Bed and breakfasts

B&Bs are also capped at 15 on Lanai, and only one was permitted as of October 2024. The owner has to live in the home, it can have no more than six bedrooms, and new Lanai applications go to the Lanai Planning Commission. Ordinance 6014, passed in July 2026, kept the 15 cap.

Does Bill 9 affect Lanai?

Bill 9 ends grandfathered vacation rental use in apartment-zoned condos across Maui County by 2029 or 2031. Reporting on the bill put the affected units in West Maui, South Maui, Hana, Paia and Molokai, with no mention of Lanai. Lanai has very few condos to begin with. If you’re looking at a specific Lanai condo, still check its zoning.

Taxes and licenses

A permitted vacation rental is taxed at Maui County’s TVR-STRH rate, $13.00 per $1,000 of assessed value up to $900,000 for 2026-27. That’s much higher than the owner-occupied or long-term rental rate. You’ll also need state general excise tax (GET) and transient accommodations tax (TAT) licenses.

Long-term rentals

Long-term rentals (30 days or more) don’t need these permits. Lanai has a real shortage of housing for people who work there, so a well-kept long-term rental usually doesn’t sit empty. Maui County also has a lower long-term rental tax rate, starting at $2.90 per $1,000.

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

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