OWN AN OAHU PROPERTY? TALK TO OUR MANAGEMENT TEAM
Thinking about buying or renting out a condo in Waikiki? Before you list, it pays to understand where legal short-term rentals are allowed on Oahu. The rules have tightened in recent years, and a property that works as a vacation rental in one building may be limited to long-term leases next door.
In this guide, we cover the current zoning rules, the taxes every Oahu host needs to know, and nine Waikiki buildings where legal short-term rentals are commonly operated. Rules change, so always confirm the details for your specific property before you buy or list.
Where Are Legal Short-Term Rentals Allowed on Oahu?
On Oahu, legal short-term rentals are concentrated in resort-zoned areas. The main ones are Waikiki, Ko Olina and Turtle Bay. Outside these areas, the City and County of Honolulu restricts vacation rentals to protect housing for long-term residents.
The 90-Day Rule (Bill 41)
In 2022, Honolulu passed Ordinance 22-7, commonly called Bill 41. It set a 90-day minimum stay for rentals outside resort zones, up from the previous 30-day minimum. In practice, this means:
- Inside resort zones (such as Waikiki), stays shorter than 90 days are generally allowed, as long as the building’s own rules permit them and the unit is properly registered.
- Outside resort zones, most homes and condos cannot be rented for less than 90 days. The main exception is properties that hold a valid Nonconforming Use Certificate (NUC), which are limited and no longer issued to new applicants.
Parts of Bill 41 have been challenged in court and updated over time, so check the latest guidance from the Honolulu Department of Planning and Permitting (DPP) before making decisions. You can also read our guide to Nonconforming Use Certificates on Oahu.
Building Rules Matter Too
Zoning is only the first step. Even in Waikiki, some condo associations prohibit vacation rentals or require minimum stays of 30 days or more. Always review the building’s bylaws and house rules, and work with a knowledgeable Oahu real estate agent before you buy.
Taxes for Legal Short-Term Rentals on Oahu
Every Oahu vacation rental owner must register with the Hawaii Department of Taxation, display their tax ID on online listings, and file returns on a regular schedule. The three main taxes on short-term rental income are:
- Transient Accommodations Tax (TAT): 11% of gross rental income for stays under 180 days. The state rate increased from 10.25% to 11% on January 1, 2026.
- Oahu Transient Accommodations Tax (OTAT): an additional 3% county tax on the same rentals.
- General Excise Tax (GET): 4.5% on Oahu (the 4% state rate plus a 0.5% county surcharge).
These taxes can typically be passed on to guests. Honolulu also applies a higher real property tax class to transient vacation units, so factor that into your numbers when evaluating a purchase. Many owners have their property manager handle registration and filings, so ask what is included before you sign.
Buildings That Allow Legal Short-Term Rentals in Waikiki
Here are nine popular Waikiki buildings where legal short-term rentals are commonly operated. Building rules can change, so confirm current policies with the association or your agent before you buy.
1. Ilikai
Set between Waikiki and Ala Moana Beach Park, the Ilikai offers sweeping Pacific views. It introduced the condotel concept to Hawaii in 1964, blending condo ownership with hotel amenities, and its lobby, shops and pool deck were renovated in 2014.
Type: Condotel, privately owned units with hotel amenities
2. Ilikai Marina
Just down the road from the Ilikai, Ilikai Marina offers studios and one-bedroom condos with kitchens and private lanais overlooking the marina, a good fit for both short getaways and longer stays.
Type: Residential
3. Waikiki Banyan
One block from Waikiki Beach, Waikiki Banyan is known for its family-friendly feel. One-bedroom suites come with full kitchens and private lanais, and the 6th-floor recreation deck features a pool, two hot tubs, a sauna, barbecues and a children’s playground.
Type: Condotel, privately owned units with hotel amenities
4. Waikiki Sunset
Near the heart of Waikiki, Waikiki Sunset offers one- and two-bedroom suites with full kitchens and private balconies, plus a heated pool, sauna, barbecue area and on-site convenience store.
Type: Condotel, privately owned units with hotel amenities
5. Waikiki Beach Tower
This upscale beachfront condominium resort features spacious suites with high-end furnishings, full kitchens and large ocean-view balconies, along with a fitness center, pool, hot tub, barbecues and lounge.
Type: Condotel, privately owned units with hotel amenities
6. Pacific Monarch
A short walk from Waikiki Beach, Pacific Monarch offers studios and one-bedroom suites with kitchenettes and lanais. Its rooftop pool and hot tub look out over the ocean, the city and Diamond Head.
Type: Condotel, privately owned units with hotel amenities
7. Island Colony
One of Waikiki’s tallest towers, Island Colony offers studios and one-bedroom suites with private lanais and city, mountain or ocean views, plus a pool, sauna and recreation deck.
Type: Condotel, privately owned units with hotel amenities
8. Aloha Surf
In the heart of Waikiki, Aloha Surf is made up mostly of compact studios, an accessible entry point for buyers. The gated property includes a pool and barbecue area.
Type: Condotel, privately owned units with hotel amenities
9. Scandia Tower
Half a block from the beach near Kapahulu Avenue, Scandia Tower offers spacious two-bedroom units with private lanais, plus bike and surfboard storage.
Type: Residential
FAQs About Legal Short-Term Rentals on Oahu
What counts as a short-term rental on Oahu?
Under Honolulu’s current rules, a rental of less than 90 consecutive days is treated as a short-term rental. Outside resort zones, these are generally not allowed unless the property holds a valid NUC.
Where are legal short-term rentals allowed on Oahu?
Mainly in resort-zoned areas, including Waikiki, Ko Olina and Turtle Bay, subject to each building’s rules and registration requirements.
Can I get a new short-term rental permit outside a resort zone?
Generally, no. New Nonconforming Use Certificates are not being issued, so most properties outside resort zones are limited to stays of 90 days or more. Check with the DPP for current options.
What taxes do Oahu short-term rental owners pay?
The 11% state TAT, the 3% Oahu TAT and 4.5% GET on gross rental income, plus real property tax at the transient vacation unit rate.
Get Local Guidance on Your Oahu Rental
Whether you already own a Waikiki condo or are considering a purchase, our team can help you understand what is allowed and how to operate in compliance. Midway Vacations offers full-service management with in-house housekeeping, along with licensed real estate support through Midway Realty.
Curious how condotels compare to residential buildings? Read our guide on what a condotel is in Hawaii, or contact our team with your questions about short-term rentals on Oahu or Maui.
OWN AN OAHU PROPERTY? TALK TO OUR MANAGEMENT TEAM
This article is for general information only and is not legal or tax advice. Rules change, so confirm current requirements with the Honolulu DPP, the Hawaii Department of Taxation or a qualified professional.
