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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
The best Hawaii markets for real estate investors in 2027 offer entry points from about $382,000 in Volcano and strong short-term rental potential, led by about $124,000 in average annual STR revenue in Kapolei and AirDNA scores of 99 in Volcano and 98 in Papaikou. Hawaii is one of the most expensive housing markets in the country, and the six markets below cover four islands, from the state capital in Honolulu and the fast-growing west side of Oahu around Kapolei and Ewa Beach to Kahului on Maui, Lihue on Kauai, Kailua-Kona on the Big Island's dry west coast and the rainforest towns of Volcano and Papaikou on its east side. Median sale prices run from about $615,000 in Honolulu to about $1.1 million in Kahului (Redfin, 2026), and BiggerPockets puts rent-to-price ratios at only 0.23% a month in Urban Honolulu and 0.21% in the Kahului metro, with rents near $2,000. Investors buying here typically finance with Hawaii DSCR loans, which are qualified primarily based on the property rather than the borrower's personal income, although at these prices the “DSCR Ratio” generally depends on a larger down payment or a property that already earns visitor income.
This breakdown uses market data collected as of October 2026, the most current snapshot available heading into next year's buying season. If you're evaluating a purchase in the final months of 2026, keep in mind that your first full year of rental income, appreciation, or short-term rental revenue lands in 2027 regardless of when you close. A deal you underwrite today is already a 2027 investing decision, just one made with the freshest data available right now.
Hawaii taxes short-term stays more heavily than almost any other state, with a 4.5% general excise tax (4% state plus a 0.5% county surcharge), an 11% state transient accommodations tax since January 1, 2026 and a 3% county TAT in all four counties, i.e. 18.5% in all (BNBCalc). Additionally, every county limits where new vacation rentals can operate: Honolulu's code sets a 90-day minimum stay outside its resort areas, Maui is phasing out apartment-zoned rentals under Bill 9, Kauai confines them to its Visitor Destination Areas, and the Big Island allows unhosted rentals in residential and agricultural zones only with a grandfathered certificate. In practice, for an investor buying a nightly rental here, the zoning at a specific address matters more than any market average below.
Hawaii is also a buyer's market heading into 2027. Redfin's “Compete Scores” run from 42 in Ewa Beach (“somewhat competitive”) down to just 5 in Kailua-Kona (“not very competitive”), and Honolulu homes are taking a median of 90 days to sell. Redfin search data shows buyers from Los Angeles and San Francisco looking at Honolulu more than any other metro, while Honolulu buyers lead the searches into the Big Island.
Below, we break down six Hawaii markets worth watching, using current data from Zillow, Redfin, BiggerPockets, and AirDNA.
Note: Home price appreciation and rent-growth figures below come from Redfin's median sale price data, Zillow's Home Value Index and BiggerPockets' Market Finder, which use different methodologies and can vary from one another, so treat them as directional. Only Honolulu and Kahului have BiggerPockets pages, and Kahului's covers the Kahului-Wailuku-Lahaina metro, so Zillow's figures are used for the other markets. Several of Redfin's Hawaii pages show figures that look unreliable (e.g. a 29.7% drop in Honolulu's price per square foot) or rest on only a handful of sales (Volcano and Papaikou), so those figures are left out, and Redfin's Lihue figures rest on only 12 sales. Redfin's migration table for Ewa Beach repeats Honolulu's pattern and is left out. AirDNA's Honolulu figures cover its full Oahu market, and Kapolei, Ewa Beach, Kahului, Lihue, Kailua-Kona, Volcano and Papaikou are submarkets of its Oahu, Maui, Kauai and Big Island markets.
Capital-city depth at a buyer's pace
Honolulu is the state capital, and the City and County of Honolulu covers all of Oahu and about two-thirds of Hawaii's population, with state government, the military, healthcare and Waikiki tourism behind its rental demand, and it is the deepest and most liquid market on this list. It is also the market where the rules most clearly push investors toward long-term rentals rather than nightly stays.
BiggerPockets points to tourism, government and healthcare, with the State of Hawaii and Queen's Medical Center among the major employers, and Redfin search data (April to June 2026) shows Los Angeles (a net 494), San Francisco (475) and New York (122) buyers looking at Honolulu most, although 27% of local buyers searched to leave, led by Hilo and Las Vegas. However, the population is shrinking slightly, and First Street data on Redfin rates the flood risk as “moderate” (11% of properties). On the STR side, the city's code sets a 90-day minimum stay outside the resort areas (a December 2023 federal court injunction only protects 30-to-89-day rentals that were legally operating before October 2022), and new stays under 30 days are allowed only in resort zones, a few apartment-zoned areas near Ko Olina, Turtle Bay and the Hoakalei Resort and two parcels in Waikiki's apartment precinct, with registration costing $1,000 and $500 a year to renew (BNBCalc).
The Oahu market posts an AirDNA score of 87/100, with Seasonality (99) and Rental Demand (86) leading, Investability (66) and Regulation (66) next, and Revenue Growth (64) the “soft spot.” Annual revenue per listing averages $72,121 (down 0.9% year-over-year), with an average daily rate of $291.78 (down 1.1%) and occupancy of 74% (down 0.2%). Total active listings sit at 7,918, up 0.3%, the deepest STR market in the article, and the Downtown Oahu submarket scores 98 ($54K a year at 75% occupancy). Note that these figures cover the whole island, including resort areas where nightly stays are allowed, so they say little about a home in a residential neighborhood.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Honolulu and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · BiggerPockets Market Finder↗ · BNBCalc Honolulu STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Honolulu offers the deepest market, the lowest Redfin median and the most negotiating room among Hawaii's larger markets, but nightly rentals are limited to a few resort areas. Investors should generally underwrite on long-term rents, take advantage of the slower sales pace to negotiate, and buy within the resort zones only if nightly stays are the plan.
Second-city growth and resort-zone rentals
Kapolei and Ewa Beach anchor West Oahu, the island's fastest-growing area, about 20 miles west of downtown Honolulu, with newer subdivisions, the Ko Olina resort area and the Hoakalei Resort, two of the few places on Oahu where new nightly rentals can be registered. It is the long-term rental market on this list with the highest rents, plus a resort-zone STR option.
The case for West Oahu rests on families and military households, with Joint Base Pearl Harbor-Hickam nearby and Kapolei built up as Oahu's “second city,” and on rents that run well above Honolulu's. However, the city's 90-day minimum applies here too, so nightly stays are limited to the resort areas, i.e. Ko Olina in Kapolei and the Hoakalei Resort in Ewa Beach, which are among the few areas where new stays under 30 days are allowed (BNBCalc).
The Kapolei submarket posts an AirDNA score of 97/100, with Seasonality (97), Investability (89) and Rental Demand (87) leading, Regulation (72) next, and Revenue Growth (59) the “soft spot.” Annual revenue per listing averages about $124,000 (down 0.8% year-over-year), the highest in the article, with an average daily rate of $626.26 (up 3.7%) and occupancy of 71% (down 5.2%) across 476 listings (up 9.2%), and the Ko Olina resort villas carry the top end, such as a pair of oceanfront villas ($728K a year at 92% occupancy). The Ewa Beach submarket is much smaller, scoring 63/100 on 59 listings (up 11.3%), with revenue of $42,464 (up 2.0%), a daily rate of $172.71 (down 2.2%) and occupancy of 76% (up 2.0%), the highest on the list.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Kapolei and Ewa Beach and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Zillow: Ewa Beach↗ · Redfin Housing Market↗ · Redfin Housing Market↗ · BNBCalc Honolulu STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Kapolei and Ewa Beach offer the highest rents in the article and a resort-zone STR option at Ko Olina and Hoakalei. Investors should generally buy for the long-term rent in the newer subdivisions, and treat Ko Olina and Hoakalei units as resort products priced for nightly income.
Maui's main street for long-term tenants
Photo: ideatrendz, CC BY-SA 2.0 (cropped)
Kahului is Maui's commercial center, home to the island's main airport, its deep-water harbor and, next door in Wailuku, Maui Memorial Medical Center, with steady long-term rental demand from the people who keep the island running. It has the highest prices on this list and almost no STR market of its own, so it is a long-term rental market.
BiggerPockets points to tourism, healthcare and retail, with Maui Memorial Medical Center among the major employers, and Redfin search data (April to June 2026) shows San Francisco (a net 185), Los Angeles (183) and Seattle (116) buyers looking at Kahului most. However, First Street data on Redfin rates the flood risk as “major” (12% of properties). On the STR side, Bill 9, signed on December 15, 2025, phases out short-term rentals in Maui's apartment-zoned districts (about 7,000 units on the “Minatoya list,” about 6,200 of them actively operating) by January 1, 2031, or January 1, 2029 in West Maui, and two lawsuits challenging it are pending with no injunction so far. Outside those districts, Maui requires a discretionary Short-Term Rental Home permit, which involves notifying neighbors within 500 feet and a Planning Commission hearing (BNBCalc), and the phase-out could add to the island's long-term rental supply over time.
The Kahului submarket posts an AirDNA score of 40/100, the lowest in the article, with Seasonality (57) leading, Investability (48) next, and Rental Demand (44), Revenue Growth (44) and Regulation (41) the “soft spots.” Annual revenue per listing averages $87,135 (up 47.3% year-over-year), with an average daily rate of $614.62 (up 45.1%) and occupancy of 39% (up 2.9%), but on only 10 active listings (down 41.2%), so a few high-end beach homes, such as a three-bedroom villa with a private pool ($329K a year), drive these averages. In other words, there is no real STR market to speak of in Kahului itself.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Kahului and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · BiggerPockets Market Finder↗ · Maui Now: Bill 9↗ · BNBCalc Hawaii STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Kahului offers Maui's steadiest long-term tenant base and the highest appreciation on this list, but nightly rentals are tightly limited and prices are the highest in the article. Investors should generally buy for the long-term rent, expect the DSCR to depend on a larger down payment, and check the flood map for each address.
Thinking About One of These Markets?
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Garden Isle gains in a tightly zoned town
Lihue is Kauai's county seat and the island's main hub, home to its airport, Nawiliwili Harbor and the county and state offices, with a high-earning STR submarket built around a handful of resort properties. It has the fastest STR revenue growth on this list, on an island that has held vacation rentals to designated zones since the 1980s.
The case for Lihue rests on government, the airport and the harbor, which keep long-term rental demand steady, and on Kauai's tourism, which pushed STR revenue up more than a quarter over the past year. However, Kauai allows vacation rentals only in its Visitor Destination Areas, and VDA zoning in Lihue is very limited (Hawaii Life). Outside the VDAs, only nonconforming rentals that were operating before March 7, 2008 (with certificates obtained by March 30, 2009) may continue, with an annual renewal at $750.
The Lihue submarket posts an AirDNA score of 92/100, with Revenue Growth (91) and Seasonality (80) leading, Investability (73) next, and Rental Demand (70) and Regulation (70) the “soft spots.” Annual revenue per listing averages about $101,000 (up 26.8% year-over-year), with an average daily rate of $590.63 (up 32.3%) and occupancy of 55% (down 8.3%). Total active listings sit at 394, down 21.7%, and the top listings are multi-villa resort units, such as five two-bedroom villas at a Marriott resort ($638K a year), so the averages overstate what a typical home or condo would earn.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Lihue and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · Hawaii Life: Kauai Vacation Rental Zoning↗ · AirDNA Market Data↗
Investor Takeaway: Lihue offers Kauai's fastest-growing STR revenue and a stable government and airport job base, but new vacation rentals are limited to very little resort-zoned land. Investors should generally buy for the long-term rent outside the VDA, and confirm the zoning or the permit history of any property being sold as a vacation rental.
Kona coast condos and a buyer's bargaining edge
Kailua-Kona is the hub of the Big Island's sunny west coast, home to Ali'i Drive, the Ironman and the island's busiest airport, with a deep STR market and the softest sales market on this list. It is the market in the article where buyers have the most leverage – and where condos along the coast make up much of the inventory.
The case for Kona rests on tourism, with the resorts, the Ironman and year-round sun drawing visitors, and on rents that are up 11.5% over the year, and Redfin search data (April to June 2026) shows Honolulu (a net 628), Los Angeles (316) and Seattle (296) buyers looking at the Big Island most. On the STR side, Hawaii County allows unhosted vacation rentals outright in its Resort, General Commercial and Village Commercial districts, in General Plan resort areas and in condominiums in multifamily zones, and elsewhere only with a nonconforming use certificate, which the county stopped accepting applications for in 2019 (Wai Pacific). Additionally, under Ordinance 25-50, effective July 1, 2026, every vacation rental must register with the county ($500 for an unhosted rental, then $250 a year to renew).
The Kailua-Kona submarket posts an AirDNA score of 86/100, with Seasonality (96) and Rental Demand (83) leading, Regulation (71) next, and Revenue Growth (62) and Investability (60) the “soft spots.” Annual revenue per listing averages $81,671 (up 0.6% year-over-year), with an average daily rate of $407.66 (up 5.5%) and occupancy of 64% (down 4.8%). Total active listings sit at 2,993, down 3.4%, the deepest STR submarket in the article outside Oahu.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Kailua-Kona and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · Hawaii County Ordinance 25-50 Summary↗ · Wai Pacific: Hawaii County STVR Rules↗ · AirDNA Market Data↗
Investor Takeaway: Kailua-Kona offers the most negotiating room in the article and a deep, year-round STR market on the Big Island's resort coast. Investors should generally use the high share of price cuts to negotiate, confirm that a property's zoning allows nightly stays before buying, and register any rental with the county.
Rainforest retreats and record scores
Volcano sits at about 3,700 feet beside Hawaii Volcanoes National Park, and Papaikou lies along the green Hamakua Coast just north of Hilo, near Akaka Falls, with the two highest AirDNA scores in the article – and the lowest home values! They are the classic Big Island getaway markets, in a county where the zoning decides whether an investor can rent nightly at all.
The case for this side of the island rests on the national park, which draws visitors year-round, and on the waterfalls, rainforest and coastline north of Hilo, with nightly rates far below the resort coasts but steady occupancy. However, outside the county's resort and commercial districts and multifamily condos, including on residential and agricultural land, Hawaii County allows unhosted vacation rentals only with a nonconforming use certificate, and applications for those closed in 2019 (Wai Pacific), so investors should generally confirm a property's zoning or certificate before buying, or plan on a hosted stay. Every rental must also register under Ordinance 25-50.
The Volcano submarket posts an AirDNA score of 99/100, the highest in the article, with Seasonality (98), Revenue Growth (89), Investability (86) and Rental Demand (86) all strong and Regulation (74) the “soft spot.” Annual revenue per listing averages $42,026 (up 5.6% year-over-year), with an average daily rate of $205.78 (up 5.1%) and occupancy of 61% (up 1.0%) across 345 listings (down 1.1%), and small, distinctive stays carry the top end, such as a one-room cottage ($131K a year at 88% occupancy). Papaikou scores 98/100, with revenue of $48,362 (up 15.7%), a daily rate of $253.73 (up 13.2%) and occupancy of 59% (up 2.1%) across 103 listings (down 12.7%), with Investability (58) its “soft spot.”
Financing note: Volcano and Papaikou deals often qualify on TTM actuals or STR revenue projections given the nightly revenue base, and Harpoon Capital offers industry leading DSCR Loans for properties throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Zillow: Papaikou↗ · Wai Pacific: Hawaii County STVR Rules↗ · Hawaii County Ordinance 25-50 Summary↗ · AirDNA Market Data↗
Investor Takeaway: Volcano and Papaikou offer the highest STR scores and the lowest entry prices in the article, with year-round park and coastline demand. Investors should generally confirm a property's zoning or nonconforming use certificate with the county before buying, or plan on a hosted rental, and underwrite on trailing twelve-month actuals.
| MARKET | AIRDNA SCORE |
ANNUAL REVENUE |
AVG. DAILY RATE |
OCCUPANCY | YOY LISTING GROWTH |
|---|---|---|---|---|---|
| Volcano | 99 | $42,026 (+5.6%) |
$205.78 (+5.1%) |
61% (+1.0%) | -1.1% (345 listings) |
| Papaikou | 98 | $48,362 (+15.7%) |
$253.73 (+13.2%) |
59% (+2.1%) | -12.7% (103 listings) |
| Kapolei | 97 | $124K (-0.8%) |
$626.26 (+3.7%) |
71% (-5.2%) | +9.2% (476 listings) |
| Lihue | 92 | $101K (+26.8%) |
$590.63 (+32.3%) |
55% (-8.3%) | -21.7% (394 listings) |
| Honolulu (Oahu) | 87 | $72,121 (-0.9%) |
$291.78 (-1.1%) |
74% (-0.2%) | +0.3% (7,918 listings) |
| Kailua-Kona | 86 | $81,671 (+0.6%) |
$407.66 (+5.5%) |
64% (-4.8%) | -3.4% (2,993 listings) |
| Ewa Beach | 63 | $42,464 (+2.0%) |
$172.71 (-2.2%) |
76% (+2.0%) | +11.3% (59 listings) |
| Kahului | 40 | $87,135 (+47.3%) |
$614.62 (+45.1%) |
39% (+2.9%) | -41.2% (10 listings) |
Source: AirDNA, current as of 2026. Markets 2 and 6 each cover two submarkets, so the table shows eight rows. Scores and figures reflect each market or submarket as defined by AirDNA and may not correspond 1:1 with city or county boundaries. As of October 2026
A few patterns stand out. The highest scores belong to the least expensive places on this list, Volcano and Papaikou, where modest nightly rates earn steady occupancy year-round, while the highest revenue comes from resort-zoned products, i.e. the Ko Olina villas in Kapolei ($124K) and the resort units that dominate Lihue ($101K). Additionally, Seasonality scores sit at 80 or above everywhere except Kahului, so Hawaii's demand is far steadier through the year than most vacation markets, and the real constraint on an STR here is zoning rather than season.
Hawaii's real estate landscape offers a strategy for nearly every type of investor:
Market-level data is a starting point, not a substitute for underwriting the specific property, neighborhood and rental strategy in front of you. Every Hawaii county limits where new vacation rentals can operate, and Maui's Bill 9 shows how quickly the rules can change, so investors should confirm the zoning and any existing permit or certificate at a specific address before they close, and budget for roughly 18.5% in combined taxes on nightly stays.
If you are ready to invest in one of these markets, start with our Hawaii DSCR loans page.
Sources: Redfin housing market data, BiggerPockets Market Finder, Zillow Home Value Index, AirDNA market and submarket data (airdna.co), BNBCalc Hawaii STR guide, BNBCalc Honolulu STR guide, Maui Now, Hawaii Life, Gather Vacations and Wai Pacific. Data collected as of October 2026, ahead of the 2027 investing season.
At the state level, short-term rental operators register for the general excise tax and the transient accommodations tax and show their TAT number in ads, and stays carry about 18.5% in combined taxes. Each county adds its own rules: Honolulu requires a $1,000 registration and allows stays under 30 days only in its resort zones and a few nearby areas, Maui requires a discretionary STR home permit outside its apartment districts, Kauai limits vacation rentals to its Visitor Destination Areas, and Hawaii County requires every rental to register and allows unhosted rentals in residential and agricultural zones only with a grandfathered certificate.
No. Out-of-state and first-time investors can buy investment property in Hawaii without any license. A DSCR loan qualifies you primarily based on the property itself rather than your personal income or professional credentials, which is part of why it's such a common financing tool for out-of-state buyers.
A DSCR (Debt Service Coverage Ratio) loan qualifies a property primarily based on the property (its rent, value and location) relative to its mortgage payment, rather than the borrower's personal income or tax returns. If the property's projected or actual rent covers the mortgage payment (a DSCR of 1.00x or higher), it's generally easier to qualify, and Harpoon Capital also offers options for deals below 1.00x.
Yes, but generally only where the zoning allows it or where a property already holds a valid permit or certificate. On Oahu that means the resort zones and a few nearby areas such as Ko Olina and Hoakalei, on Kauai the Visitor Destination Areas, and on the Big Island the resort and commercial districts, condos in multifamily zones or a home with a nonconforming use certificate, while Maui is phasing out its apartment-zoned rentals by 2031. Investors should typically confirm the status of a specific property with the county planning department before making an offer.
Harpoon Capital's DSCR loan program allows as little as 15% down on qualifying purchases, up to 85% LTV, with cash-out refinances available up to 80% LTV. Exact terms depend on the property, credit profile, and DSCR ratio. Fill out our DSCR Loan Application to see specific numbers for your deal.
Ready to Run the Numbers on a Hawaii Deal?
Whether you're eyeing a long-term rental in Honolulu or a rainforest getaway in Volcano, get a same-day rate and terms with our two-minute DSCR quote form, or explore the full Hawaii DSCR Loans Program to see how we qualify the property, not just the borrower.
This article is for informational purposes only and does not constitute investment, legal, or financial advice. Harpoon Capital encourages investors to conduct independent due diligence before making any real estate investment decision.