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After months of anticipation, Maui County has released the Temporary Investigative Group (TIG) Report — a defining document that outlines how officials plan to phase out short-term rentals (STRs) in Apartment-zoned districts. The report reveals, for the first time, which condominium projects are proposed for exemption and which may lose STR eligibility altogether.

Important: This report is a recommendation, not yet law. The County Council will now deliberate, amend, and eventually vote on the TIG findings before any phase-out becomes official.

Summary of the TIG Findings

The TIG report identifies roughly 7,000 units across more than 100 Apartment-zoned condominium properties currently operating as short-term rentals. These units contribute an estimated $1.7 billion annually in visitor spending and account for about 15% of Maui’s total lodging inventory.

According to the TIG, these rentals have played a key role in the island’s economy — but have also intensified housing scarcity for residents. The report recommends limiting STRs primarily to areas already designated as visitor-oriented, such as Wailea, Kaanapali, and Kapalua, while transitioning most Apartment-zoned STRs back into the local housing market.

The County’s stated goals are to: (1) increase housing availability for Maui residents, (2) maintain tax revenue from legal visitor accommodations, and (3) balance tourism with community sustainability.

Which Condos Are Proposed for Exemption

The TIG proposes that approximately 53 Apartment-zoned condo projects be exempt from the short-term rental phase-out. These properties — concentrated in Kaanapali, Kapalua, Wailea, and Maalaea — are expected to be rezoned into new Hotel (H-3 or H-4) districts, preserving their ability to operate as vacation rentals.

Exempted Apartment-Zoned Condos (Proposed) — Island of Maui

Maui condominiums proposed as Exempt from the phase-out.

What the second list means: The next table lists Apartment-zoned properties not proposed for exemption and, under the TIG recommendation, expected to lose STR eligibility unless future legislation provides another path to compliance.

Not Exempt (Apartment-Zoned VRs Expected to Lose STR Eligibility) — Island of Maui

Clarification on Zoning and Scope

This proposed exemption list does not include other zoning classifications already permitted for short-term rentals, such as Hotel (H-1, H-2), Residential (R-2, R-3), Agricultural (AG), Business (B-2), Planned Unit Development (PUD), Open Space (OS-2), or Neighborhood Business Country Town (NBCID). Those districts remain unaffected by the proposed Apartment zoning restrictions. Here is a complete list of all the vacation rental condos that were already exempted and should NOT lose their legal vacation rental status.

For reference, you can view Maui County's Version of a "complete list" of all Maui County condominiums here.

Market Reaction: When Data Meets the Deal
For investors, the TIG report brings long-awaited clarity after months of rumors and uncertainty. But it also draws a definitive line in the sand. “Exempt” properties are expected to hold their value and liquidity, while “non-exempt” condos may face downward pressure as buyer demand and financing options shift.

Developers and market analysts anticipate a split: a resilient short-term rental segment versus repositioned long-term residential inventory. Appraisers are already preparing to factor exemption status into valuation models, and some lenders are signaling that loan terms could hinge on whether a property is exempt.

Even the TIG acknowledges the tradeoff. While reclaiming housing for residents is the goal, the shift may ripple through the local economy, impacting small businesses, property managers, and tourism jobs. The report encourages the County Council to phase in the changes to avoid economic disruption.

In a shifting landscape, knowing your property's status isn’t just smart — it’s essential.