Is Makaha, Hawaii Good for Airbnb Investment?

Potentially—Makaha, Hawaii combines visitor demand with long-term real estate upside.

• Presents a unique and somewhat niche opportunity.
• While Makaha benefits from Hawaii's strong tourism appeal, offering a more secluded and authentic Hawaiian experience compared to bustling Honolulu.
• Tourism in Makaha is generally driven by those seeking outdoor activities like surfing and hiking, and a more relaxed pace.
• However, the investment potential must be carefully weighed against local regulations, which can be stringent, and the potential for lower nightly rates compared to more resort-heavy areas.
• Property values in Makaha, while lower, have shown steady appreciation, but the profitability of an Airbnb investment will heavily depend on consistent occupancy.

$2,800–$4,500 per month based on location, season, and property quality.

• Based on available vacation rental data for Makaha, Hawaii, Airbnb hosts typically earn between $2,800-$4,500 per month.
• Seasonal variations show peak earnings during winter months (December through March) when mainland visitors escape cold weather, with revenues increasing approximately 25-35% above summer averages.
• Summer months experience slightly lower demand due to higher temperatures and increased local competition from traditional hotels offering discounted rates.
• Key factors affecting earnings include proximity to Makaha Beach (properties within 200 yards typically earn 40-60% more), property size and amenities (pools and air conditioning significantly boost bookings).
• The area's remote location on Oahu's west side creates both challenges and opportunities, as guests seek authentic Hawaiian experiences away from crowded Waikiki.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with higher-end oceanfront properties reaching 15-18% during peak seasons.
• The payback period for Airbnb properties in Makaha ranges from 8-12 years depending on purchase price and occupancy rates.
• Makaha's remote west shore location creates seasonal demand fluctuations with winter surf season and summer family vacations driving 80% of annual bookings.

Makaha, Hawaii averages 65–70% annual occupancy, with seasonal variation.

• Makaha, Hawaii typically experiences average Airbnb occupancy rates of approximately 65-70% annually.
• Summer months (June through August) see moderate occupancy around 70-75%, while spring and fall shoulder seasons drop to 55-65%.
• The area experiences secondary peaks during major surf competitions and Hawaiian cultural events.
• Compared to the statewide Hawaii average of approximately 75-80% occupancy, Makaha performs slightly lower due to its more remote location on Oahu's west side and limited resort infrastructure.
• Nationally, where Airbnb occupancy rates average 48-52%, Makaha significantly outperforms due to Hawaii's consistent tourism demand, year-round warm weather, and limited hotel inventory in the immediate area.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Makaha, Hawaii include the beachfront areas along Farrington Highway which offer direct ocean access and premium pricing power due to their proximity to Makaha Beach Park and world-class surfing spots, attracting both leisure tourists and surf enthusiasts year-round.
• The hillside residential areas above Makaha Valley provide elevated ocean views and larger properties that command higher nightly rates while offering more privacy for families and groups seeking luxury accommodations.
• The central Makaha Valley neighborhoods near the golf course appeal to golf tourists and offer mid-range pricing with easy access to Makaha Resort Golf Club and hiking trails leading to Kaneana Cave.
• The northern sections closer to Yokohama Bay attract adventure seekers and nature lovers willing to pay premium rates for secluded beachfront access and proximity to Kaena Point State Park.
• The southern areas near Maili offer more affordable investment opportunities with good rental demand from budget-conscious travelers while still providing beach access and sunset views.
• Properties near the Makaha Surfing Beach area capitalize on the location's legendary surf breaks and consistent demand from international surf tourists.
• The residential pockets inland from the main highway provide larger lots and family-friendly accommodations that appeal to multi-generational Hawaiian vacation groups seeking authentic local experiences away from crowded resort areas.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Short-term rental regulations in Makaha, Hawaii are governed by both Honolulu County ordinances and state regulations.
• Properties must comply with occupancy limits typically set at two guests per bedroom plus two additional guests.
• Owner-occupancy requirements vary by zoning district, with some areas requiring the owner to be present during rentals while others allow non-hosted rentals for properties with valid permits.
• Makaha falls primarily under residential and resort zoning, where short-term rentals under 30 days are heavily restricted outside of designated resort areas.
• The registration process involves submitting applications to the Honolulu Department of Planning and Permitting, providing proof of legal nonconforming use, tax clearances.
• Recent regulatory changes since 2019-2021 have significantly tightened enforcement, eliminated most new short-term rental permits in residential zones, increased fines for violations to $10,000 per day.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Makaha, Hawaii are subject to multiple fees and taxes including Hawaii's Transient Accommodations Tax (TAT) at 10.25% of gross rental receipts.
• Operators must obtain a Nonconforming Use Certificate (NUC) from Honolulu County with application fees around $1,000-$2,000 and annual renewal fees of approximately $500-$1,000.
• A Transient Vacation Unit (TVU) permit is required with initial application costs of $1,500-$3,000 and annual renewal fees of $750-$1,500.
• Business registration with Hawaii requires a $20 initial fee and potential annual filing fees of $15.
• Additional costs may include fire safety inspections ($200-$500), building permits for modifications ($500-$2,000).