Understanding Hawaii Zoning Laws: What You Can (and Can’t) Do With Your Property

Zoning may not be the most glamorous topic in real estate—but in Hawaii, it’s one of the most important. Whether you’re dreaming of building a rental cottage, running a vacation rental, starting a small farm, or just planning future improvements, your property’s zoning is the gatekeeper.

Here’s a very basic breakdown of Hawaii’s zoning system and what it means for homeowners, buyers, and sellers. Keep in mind: this is only a starting point. Zoning laws are complex, and regulations can shift over time—so it’s essential to do your own due diligence or consult with the county to confirm what’s currently allowed for your specific property.

The Key Zoning Categories in Hawaii (and Why They Matter)

Hawaii’s zoning laws can feel like a maze, but understanding the basics is essential—especially if you’re thinking about building, renting, or investing. Here’s a basic breakdown of the most common zoning categories across Hawaii (with a focus on Maui County), and what each generally allows.

💡 Important: This is only a starting point. Zoning laws are nuanced, and what’s allowed can vary depending on lot size, overlays, permits, and evolving regulations. Always do your due diligence and check with the county for your specific parcel.

1. Residential (R-1, R-2, R-3, etc.)

• Allows: Single-family homes, sometimes ohanas or ADUs (with limits).

• May allow: Short-term rentals only with a permit and in eligible areas.

• Restrictions: Lot coverage, building height, subdivision potential.

2. Apartment (A-1, A-2, etc.)

• Allows: Multi-family housing like condos or low-rise apartments.

• Key for Investors: Many short-term rentable condos fall under Apartment zoning.

• Minatoya List Connection: If a unit is Apartment-zoned and on the Minatoya List, it may qualify for legal short-term rental use without a permit.

• Heads-up: Maui County is reviewing STR use in Apartment zoning. Changes may affect future rental eligibility, especially in places like West Maui and Kihei.

3. Agricultural (AG)

• Allows: Farm dwellings, agricultural operations.

• May allow: Ohanas, farm stands, barns, and limited STRs (with a permit).

• Important: AG land must be used for bona fide agricultural purposes to maintain compliance. Subdividing and STRs face significant restrictions.

4. Rural

• Allows: Low-density residential and small-scale ag.

• Often considered a bridge between Residential and AG zoning.

• Typically requires larger lot sizes and has limits on how many structures are allowed.

5. Hotel/Resort

• Allows: Hotels and transient accommodations by default.

• Most flexible for STRs—ideal for investors or buyers seeking true vacation-rental zoning.

• Found in resort areas like Wailea, Kāʻanapali, or Kapalua.

6. Conservation

• Highly regulated under the State Department of Land and Natural Resources (DLNR).

• Allows: Very limited use—often preservation, cultural practices, or very low-impact dwellings.

• Any construction or land alteration requires permits and careful review.

7. Interim Zoning

• What it is: A temporary classification applied to properties that haven’t been assigned a specific zoning designation. You’ll see this in various parts of Hawaii, often on parcels that were never formally zoned decades ago.

• Why it matters: Interim zoning is flexible—but not unlimited. Development is typically reviewed on a case-by-case basis, and approval depends on the county’s planning policies and long-term land use goals.

• The opportunity: In Hawaii, Interim-zoned land is often viewed as a hidden gem—especially for buyers or investors with a clear vision. Because it hasn’t been locked into a residential, ag, or commercial category, there may be potential to rezone or apply for a special use that aligns with your project.

• Pro tip: If you’re considering a property with interim zoning, check with the planning department early. It could be a path to something creative—or even open the door to value-added entitlement work.

8. Business/Commercial (B-1, B-2, etc.)

• Allows: Offices, shops, restaurants, and some mixed-use buildings.

• May allow: Residential units or STRs, depending on exact zoning and location.

• STRs in commercial-zoned buildings may still require permits or meet Minatoya criteria.

9. Industrial (M-1, M-2)

• Allows: Manufacturing, warehousing, trades, and light industry.

• Does not allow: Residential use—living on-site is generally not permitted.

• Can be attractive for commercial buyers or live/work situations with special approvals.

Other Considerations: Zoning Overlays

• SMA (Special Management Area): Coastal parcels often require SMA permits for building or renovations—intended to protect environmental and cultural resources.

• Historic Districts: Additional rules apply in places like Lahaina to preserve architectural character.

• Community Plan Overlays: Each district has its own long-term development vision that can impact what’s allowed—even if the zoning technically permits it.

Lastly… A Note on Property Taxes

💵 How Zoning Affects Property Taxes (A Quick Note)

Zoning doesn’t just influence what you can build or rent—it can also affect how much you pay in property taxes. For example, agricultural land may qualify for lower tax rates if it meets ag use requirements, while hotel or STR-approved properties often fall into higher tax brackets.

The county assesses taxes based on both zoning and usage, so it’s crucial to understand how your property is classified.

📌 I’ll be diving deeper into the relationship between zoning and property taxes in a separate article soon—stay tuned!