Is Makena, Hawaii Good for Airbnb Investment?

To start an Airbnb in Makena, Hawaii, begin by researching Maui County's strict short-term rental regulations, which require a Conditional Permit and limit new permits significantly - as of 2021, Maui County has imposed moratoriums on new short-term rental permits in most areas, so check current availability through the Maui County Planning Department. If permits are available, apply for a Conditional Permit ($1,000+ fee) and obtain a General Excise Tax license, Transient Accommodations Tax permit, and business license from Hawaii Department of Taxation. Find a property in Makena that's zoned for short-term rentals (typically resort or hotel districts), considering that oceanfront properties range from $2-8 million while condos start around $800,000-2 million. Furnish the property with high-quality, tropical-themed furniture, focusing on outdoor living spaces, air conditioning, and amenities like snorkeling gear given Makena's beach proximity. Create listings on Airbnb, VRBO, and local platforms like Hawaii Life Vacations, highlighting Makena Beach access, Wailea resort proximity, and sunset views, with rates typically ranging $300-1,500+ per night depending on property size and oceanfront access. Manage the property by hiring local cleaning services ($150-300 per turnover), property managers (20-30% commission), and ensure compliance with Hawaii's 180-day maximum annual rental limit and noise ordinances, while maintaining liability insurance and collecting 14.42% combined state taxes from guests.

To identify profitable short-term rental properties in Makena, Hawaii, focus on oceanfront or ocean-view locations within walking distance to Big Beach (Oneloa Beach) and Little Beach, as these areas command premium nightly rates of $400-800+ due to their pristine beaches and sunset views. Target properties with 3-4 bedrooms, private pools or hot tubs, outdoor living spaces, and modern amenities like high-speed internet and air conditioning, as these features attract higher-paying guests and longer stays. Analyze comparable properties using AirDNA and Mashvisor to benchmark occupancy rates (typically 65-75% in Makena) and average daily rates, while factoring in Hawaii's 17.96% combined tax rate and HOA fees that often range $500-1,500 monthly in resort communities like Wailea-Makena. Research competition by studying listings in nearby Wailea Resort, Maui Meadows, and Kihei to understand pricing strategies and guest preferences, noting that Makena properties often outperform due to less crowded beaches and exclusive feel. Utilize tools like Rabbu, PriceLabs for dynamic pricing, and consult local property managers such as RedAwning or Elite Pacific Properties who understand Maui County's short-term rental regulations, including the requirement for proper permits and the recent restrictions on new STR licenses, making existing permitted properties particularly valuable investments.

To obtain an Airbnb/STR permit in Makena, Hawaii, you must apply through Maui County's Department of Planning since Makena is located in Maui County. Begin by submitting a Short-Term Rental Home (STRH) application to the Maui County Planning Department, which requires a completed application form, property deed or lease agreement, floor plans, site plan, tax map key information, general excise tax license, transient accommodations tax license from the State of Hawaii, proof of liability insurance ($1 million minimum), and a management plan detailing how the property will be operated. The application fee is approximately $5,000 plus additional processing fees of around $1,500. You must also obtain a State of Hawaii General Excise Tax License and Transient Accommodations Tax License before applying. The timeline typically ranges from 6-12 months due to extensive review processes and potential hearings. Specific Makena requirements include compliance with South Maui Community Plan guidelines, adherence to fire safety codes, proper parking provisions (minimum 2 spaces), waste management plans, and noise mitigation measures. Properties must also meet all building and safety codes, and some areas may have additional restrictions based on zoning classifications. Once approved, annual renewals are required with updated documentation and fees of approximately $500-800 annually.

Short-term rentals (STRs) in Makena, Hawaii are currently legal but operate under strict regulations imposed by Maui County. As of 2021, Maui County implemented comprehensive STR ordinances that require all operators to obtain proper permits and comply with zoning restrictions, with many areas in South Maui including parts of Makena being designated for legal STR operations under specific conditional use permits. The county has established caps on the total number of STR permits available and requires operators to pay transient accommodation taxes, maintain liability insurance, and follow noise and parking regulations. Recent legal changes include stricter enforcement mechanisms implemented in 2022-2023, with the county actively pursuing unpermitted operations and imposing significant fines on violators. Makena's resort areas and certain residential zones allow STRs with proper permitting, but operators must navigate complex application processes and demonstrate compliance with fire safety, septic system capacity, and neighborhood impact assessments, while some residential neighborhoods have been designated as prohibited areas for new STR permits to preserve community character.

The best areas for Airbnb investment in Makena, Hawaii are primarily concentrated along the Wailea-Makena coastline, with Wailea Resort area being the most lucrative due to its proximity to luxury resorts like Grand Wailea and Fairmont Kea Lani, world-class golf courses, and high-end shopping at The Shops at Wailea, attracting affluent tourists year-round. South Makena near Makena Beach State Park offers excellent potential due to its famous Big Beach and Little Beach attractions, drawing beach enthusiasts and wedding parties seeking pristine coastline access. The Makena Resort area around the former Maui Prince Hotel (now under redevelopment) presents emerging opportunities as the area undergoes revitalization, with investors positioning for future tourism growth. Polo Beach and Wailea Beach neighborhoods command premium rates due to their exclusive beachfront locations and proximity to snorkeling spots like Turtle Town, appealing to luxury travelers and honeymooners. The residential areas along Makena Alanui Road offer more affordable entry points while still providing easy access to beaches and resort amenities, making them attractive to families and longer-stay visitors seeking authentic Hawaiian experiences away from crowded resort areas.

Airbnb properties in Makena, Hawaii are subject to multiple lodging and occupancy taxes including the Hawaii Transient Accommodations Tax (TAT) of 10.25% and Maui County's Real Property Tax on short-term rentals which varies by property value but typically ranges from $10.50 to $13.90 per $1,000 of assessed value annually. The TAT is collected by Airbnb directly from guests for most bookings and remitted to the Hawaii Department of Taxation, though hosts must still register for a TAT license and file monthly returns even when Airbnb collects the tax. Additionally, hosts must obtain a Maui County short-term rental permit and pay associated fees, with properties classified as Short-Term Rental Home (STRH) or Bed and Breakfast Home (B&B) depending on operation type. The General Excise Tax (GET) of 4.166% also applies to rental income and must be collected and remitted by hosts to the Hawaii Department of Taxation monthly or quarterly depending on gross income levels. Exemptions are limited and primarily apply to rentals of 180 days or longer, which are not considered transient accommodations, and certain properties may qualify for homeowner exemptions on a portion of their real property tax if the owner occupies the property as their primary residence for part of the year.

Starting an Airbnb in Makena, Hawaii requires significant upfront investment with property purchase being the largest expense at approximately $2.8-3.5 million for a median oceanfront or ocean-view property in this luxury resort area. Furnishing costs typically range $75,000-125,000 for high-end tropical furniture, appliances, linens, and decor suitable for luxury vacation rental guests. Initial setup expenses including professional photography, listing creation, welcome amenities, and cleaning supplies cost around $8,000-12,000. Permits and fees in Maui County include short-term rental permits ($1,000-2,500), business licenses ($500), tax registrations ($200), and potential conditional use permits ($5,000-15,000) depending on zoning. Insurance for vacation rentals in Hawaii costs $8,000-15,000 annually including property, liability, and hurricane coverage. Monthly utilities average $800-1,200 including electricity, water, internet, cable, and trash service. First six months operating costs encompass property management fees (20-30% of revenue or $3,000-5,000 monthly if self-managed for cleaning and maintenance), marketing ($1,000 monthly), supplies restocking ($500 monthly), and maintenance reserves ($1,000 monthly), totaling approximately $30,000-45,000. The complete startup investment ranges from $3.0-3.8 million, making Makena one of the most expensive Airbnb markets in Hawaii due to its premium beachfront location and luxury market positioning.

Airbnb properties in Makena, Hawaii demonstrate strong profitability potential with average nightly rates ranging from $400-800 for luxury beachfront properties and $200-350 for standard accommodations, generating annual revenues of $80,000-200,000 for well-positioned properties with 60-70% occupancy rates. Operating expenses typically consume 35-45% of gross revenue, including property management fees (15-25%), cleaning costs ($100-150 per turnover), utilities ($200-400 monthly), insurance ($3,000-5,000 annually), and maintenance reserves, resulting in net profit margins of 25-35% for successful operators. Success factors include proximity to Makena Beach and luxury resorts like Grand Wailea and Fairmont Kea Lani, professional photography showcasing ocean views, premium amenities like private pools and outdoor kitchens, and responsive guest communication, with top-performing properties like oceanfront condos at Makena Surf Resort achieving $300,000+ annual revenues. Properties within walking distance of Big Beach and Makena Landing command premium rates year-round, while those requiring drives to beaches see seasonal fluctuations, and investors typically achieve 8-12% cash-on-cash returns after accounting for Hawaii's high property taxes (0.28% effective rate) and occasional volcanic activity impacts on tourism demand.

Airbnb investments in Makena, Hawaii typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% due to the area's premium beachfront location and limited luxury vacation rental inventory. Properties in Makena's resort areas, particularly near Wailea and the Grand Wailea resort, command nightly rates of $400-800 for condos and $800-2000 for luxury homes, with occupancy rates averaging 65-75% annually. The timeframe to profitability is generally 18-24 months, considering initial setup costs, furnishing, and marketing expenses, though properties with ocean views or resort amenities may achieve positive cash flow within 12-15 months. The market benefits from consistent demand from high-end tourists visiting Maui's south shore, with peak seasons during winter months (December-April) and summer (June-August) driving premium pricing, while shoulder seasons maintain steady bookings at 70-80% of peak rates.

STRSearch leads the market in Airbnb investment property analysis nationwide including Makena, Hawaii. Local Maui-based companies like Maui Real Estate Collective and Island Sotheby's International Realty have agents specializing in vacation rental investments in the Makena area since 2018. Vacasa and RedAwning provide property management and acquisition services for short-term rentals across Hawaii including South Maui properties. National platforms like BiggerPockets connects investors with Hawaii-focused agents, while AirDNA offers market data analysis for Makena's vacation rental performance. Local services include Maui Vacation Rental Management and South Shore Property Management who assist with both acquisition and operations. Real estate agents like those at Coldwell Banker Island Properties and Compass Hawaii have developed expertise in STR investments following Hawaii's regulatory changes in 2019-2021. Additional resources include VRBO's property investment tools, Mashvisor's Hawaii market analytics, and local investment groups like Maui Real Estate Investors Association that provide networking and deal flow for profitable Airbnb acquisitions in the Makena-Wailea corridor.