Hawaii STR Market Data 2026 Why the Aloha State Has the Highest Occupancy in America

Honolulu’s short-term rentals hit 82.1% occupancy over the last twelve months, the highest sustained rate of any major U.S. market StaySTRA tracks. Think of that number the way you might think about a popular restaurant that only has two empty tables on any given night. The demand is not seasonal. It is structural.

StaySTRA data shows 9,780 active short-term rentals in Honolulu generating an average of $4,097 in monthly revenue at an ADR of $228. Across the water on Kauai, operators are pulling $481 per night, the highest average daily rate in the entire country, according to Beyond Pricing’s 2026 market rankings. And on the Big Island, Kailua Kona’s 4,715 listings are averaging $284 per night with a rental demand score of 87.28 out of 100.

Now, here is where it gets interesting. These numbers exist in a market where regulatory pressure is actively reducing supply. Maui just signed a law to eliminate 7,000 vacation rentals. Oahu has been fighting over minimum-stay requirements for four years. And Hawaii’s combined tax burden on STR income is the steepest in the nation at approximately 18.5%. So why are the numbers still this strong?

Let me walk you through each island’s data, because the story is not the same everywhere.

Oahu’s 9,780 Listings and the 82% Occupancy Floor

I have been staring at occupancy data for 40 years, and I will tell you straight: Oahu’s consistency is remarkable. Most mainland markets bounce between 50% and 70% occupancy depending on the season. Honolulu holds above 74% even in its weakest month (November) and pushes past 89% in July.

Here is the monthly breakdown from StaySTRA’s proprietary data:

The spread between Honolulu’s best month and worst month is only about $700 in revenue. Compare that to a market like Orlando, where the seasonal swing can exceed $1,500. For an investor, that consistency translates to something very practical: you can predict your cash flow with unusual confidence.

Now, don’t let the ADR of $228 fool you into thinking this is a budget market. Honolulu’s strength is volume, not rate. A $228 nightly rate at 82% occupancy generates almost $50,000 a year. That is not a trophy return, but it is steady, predictable income in a market where the median home sits at $757,379.

The property mix tells an important story too. Nearly 61% of Honolulu’s 9,780 listings are studios or one-bedrooms (1,956 studios and 3,989 one-bedrooms). This is a Waikiki-driven market. Think of it like a massive, well-oiled machine built for couples and solo travelers, not the family-reunion crowd. The larger units (3+ bedrooms) make up less than 6% of supply.

The Big Island, Quietly Beating Expectations

Kailua Kona does not get the headlines that Maui and Oahu get. But sitting here with my coffee, looking at the data, I find myself spending more time on the Big Island numbers than anywhere else in the state.

StaySTRA’s proprietary data shows 4,715 active listings in Kailua Kona with a last-twelve-month ADR of $284 and 73.3% occupancy. That works out to $4,243 per month, or about $50,916 annually. The rental demand score of 87.28 is actually the highest of any Hawaii market in our database.

What catches my eye is the seasonal pricing pattern. The ADR swings from $256 in September up to $316 in January. That is a 23% premium during peak season. Hosts who understand dynamic pricing can capture that spread effectively.

The property mix here is different from Honolulu. Two-bedroom units are the largest category at 1,608 listings, slightly edging out one-bedrooms at 1,557. This is a family and small-group market. The Big Island draws a different traveler than Waikiki does, someone looking for space, snorkeling, and volcano visits rather than nightlife and shopping.

With typical home values at $873,843, the gross yield math works out to about 5.8% before expenses. That is not going to retire you overnight. But factor in the Big Island’s relatively lighter regulatory burden compared to Oahu and Maui, and the risk-adjusted picture starts looking more interesting.

One thing I want to flag: Hawaii County’s Bill 47 requires mandatory annual STR registration starting July 1, 2026. The registration system is still being built. If you are operating on the Big Island, stay on top of that timeline.

Maui and the 7,000-Unit Question

I need to talk about Maui carefully, because the data picture is evolving in real time.

StaySTRA tracks 216 active listings in the Haiku area of Maui with the highest ADR in our Hawaii database at $323 per night. The last-twelve-month occupancy runs at 75.9%, generating $5,488 per month, or roughly $65,856 annually. The guest ratings tell a story too: 4.85 out of 5 overall, with cleanliness at 4.90 and communication at 4.97. These are well-run properties serving discerning guests.

But here is the elephant in the room.

Maui County signed Bill 9 into law on December 15, 2025. The law phases out approximately 7,000 apartment-zoned vacation rentals. West Maui properties (think Kaanapali, Lahaina) must cease STR operations by January 1, 2029. South Maui (Wailea, Kihei) gets until January 1, 2031.

Two lawsuits are challenging the law, but as of March 2026, neither has produced a ruling. The Maui Planning Commission also rejected a proposed rescue plan that would have preserved about 4,500 units through new hotel zoning categories.

So what happens to the numbers when you pull 7,000 units out of a market?

Stay with me here, because this is the kind of supply-and-demand scenario that keeps data analysts up at night. The University of Hawaii Economic Research Organization (UHERO) projects the phase-out could mean roughly $900 million in annual visitor spending losses for Maui. That sounds catastrophic. But look at the other side: approximately 6,500 permitted TVR parcels, thousands of hotel rooms, and 2,400-plus timeshare and bed-and-breakfast operations will continue to serve visitors.

If you remove half the vacation rental supply from a market where visitor arrivals have been flat (9.64 million statewide in 2025, essentially unchanged from 2024), the remaining operators face a question: does demand follow the supply reduction, or does it redistribute?

History suggests it redistributes. When New York City’s Local Law 18 removed roughly 15,000 listings overnight, the remaining legal operators saw their occupancy and ADR climb. Maui’s phase-out happens over five years rather than overnight, which gives the market time to adjust. But the directional pressure is the same: fewer listings chasing the same demand pool means higher occupancy and stronger pricing power for those who remain.

I am not going to project specific post-phase-out ADR numbers for Maui, because there are too many variables in play (litigation outcomes, enforcement timelines, visitor arrival trends). But if you hold a permitted STR on Maui that is exempt from Bill 9 (hotel-zoned, resort-zoned, or a licensed STRH), the competitive landscape is about to shift dramatically in your favor.

Kauai’s $481 Nightly Rate and What It Actually Means

Kauai is the outlier in every data set I look at.

According to Beyond Pricing’s 2026 rankings, Kauai commands a $481 average daily rate, making it the most expensive STR market in the United States. Not Hawaii. The entire country. Kauai vacation rentals achieved an average daily rate of $464 in June 2025, representing an 18% jump from 2024 and a 72% increase from pre-pandemic 2019 levels.

But the occupancy picture is more complicated. Kauai sits at approximately 63% occupancy, well below Oahu’s 82%. This is the classic luxury-market pattern: high rates, lower volume. Think of it like a fine-dining restaurant versus a popular bistro. The fine-dining spot charges four times as much per plate but has empty tables on Tuesday nights.

Poipu on the South Shore consistently outperforms the North Shore in both ADR and year-round occupancy. The North Shore (Princeville, Hanalei) commands premium rates during peak season but faces steeper drop-offs in shoulder months.

One serious regulatory note: Kauai enforces what might be the strictest permit renewal policy in the country. Miss your TVR permit renewal by even one business day, and you forfeit the permit permanently. No reapplication. No grace period. If you are investing on Kauai, calendar management is not optional.

The Tax Burden Every Investor Needs to Understand

Let me put this plainly, because I have seen too many mainland investors underestimate what Hawaii’s tax structure does to their net returns.

The Transient Accommodations Tax (TAT) increased to 11% on January 1, 2026. Each county adds a 3% surcharge, bringing the combined TAT to 14%. Then there is the General Excise Tax (GET) at 4% to 4.5%, which applies to gross rental proceeds, not just the nightly rate.

Add it up: your guests are paying approximately 18% to 18.5% in combined taxes. And unlike mainland sales tax, the GET hits your gross revenue before expenses.

On top of that, Oahu’s property tax rate for STR properties runs $9 to $11.50 per $1,000 of assessed value, compared to $4 per $1,000 for standard residential. That is roughly triple the residential rate.

A Honolulu property generating $49,164 in annual gross revenue will owe approximately $9,100 in TAT/GET before property taxes, insurance, management fees, and maintenance. The occupancy is stellar. The gross revenue is solid. But the net margin requires careful pencil work.

The Supply Squeeze Investment Thesis

Here is what the data tells me when I step back and look at the full picture across all four islands.

Hawaii’s visitor arrivals have been essentially flat for two years. The state received 9.64 million visitors in 2025, a 0.6% dip from 2024 and still well below the 10.4 million pre-pandemic peak. But daily per-person spending hit a record $273, according to the Hawaii Tribune-Herald. Fewer people are coming, but they are spending more. Total visitor spending reached $21.75 billion in 2025, up 5.7% year over year.

At the same time, regulatory pressure is reducing the supply of legal vacation rentals. Maui is phasing out 7,000 units. Oahu keeps fighting over minimum-stay requirements. The Big Island is introducing mandatory registration. Kauai already enforces strict permit caps with no-forgiveness renewal policies.

This creates what I call a “supply squeeze” scenario. Demand is stable. Supply is contracting. For operators who hold valid permits and legal standing, the pricing power trajectory points upward.

But (and I want to be very clear about this) the barriers to entry are substantial. Home values range from $757,379 in Honolulu to $1.28 million on Maui. The tax burden is the steepest in the country. Regulatory compliance costs are real and growing. And if you are considering the Big Island or Kauai, remote management adds another layer of complexity. (My colleague Nedra Ellison wrote a thorough piece on managing a Hawaii STR from 2,500 miles away that is worth reading.)

This is not a market for casual investors. It is a market for operators who can navigate regulatory complexity, absorb high upfront costs, and commit to running their rental like a professional hospitality business.

Island-by-Island Comparison at a Glance

One thing that jumps out: the Big Island actually produces more annual gross revenue ($50,916) than Honolulu ($49,164) despite having less than half the listings. The ADR premium and the property mix (more multi-bedroom units) give Kailua Kona a slight edge in per-listing revenue. Honolulu wins on occupancy consistency and lower home values, which means a better gross yield.

We do our best to keep our data accurate and up to date, but markets move fast and we are only human. Always verify current figures directly with local sources before making investment decisions.

Run the Numbers for Hawaii

Want to see how these numbers play out for a specific property? Our free Honolulu Airbnb Calculator and Kailua Kona Airbnb Calculator pull real market data so you can estimate revenue, occupancy, and expenses for any address.

For a deeper look at individual markets including active rental counts, average daily rates, and neighborhood-level data, explore our Honolulu market profile, Kailua Kona market profile, or Haiku (Maui) market profile.

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