Big Island Vacation Rental Rules Are Changing

What Owners and Buyers Need to Know in 2026

If you own a short-term rental on the Big Island, or you’re thinking about buying one, Hawaii County’s proposed Bill 147 is worth paying close attention to. Here’s a plain-language breakdown of what’s changing, what it means for your property, and what you should do now.

What Is Bill 147?

Bill 147 is the county’s most significant update to vacation rental rules since Bill 108 passed in 2018. Where Bill 108 focused exclusively on unhosted rentals, Bill 147 brings hosted rentals into a formal regulatory framework for the first time, adding operational standards, clearer zoning rules, and a real enforcement structure with meaningful fines.

Hosted vs. Unhosted: The Distinction That Matters Most

The bill formally defines two types of short-term rentals:

A B&B is a hosted rental where someone lives on the same parcel as the rental while guests are there. An STVR is an unhosted rental with no one on-site. This isn’t just a terminology change. The two types are treated very differently in terms of where they’re allowed and what rules apply.

The county is consolidating its terminology, bringing both short-term vacation rentals (STVRs) and bed and breakfasts (B&Bs) under a single umbrella term: transient vacation rental, or TVR.​​​​​​​​​​​​​​​​

B&Bs have broad zoning coverage across most residential, commercial, and agricultural districts. STVRs are limited primarily to resort, resort node areas and visitor designation areas noted in the General Plan, plus some multi-family condo properties. If your rental is in Kona, Kohala Coast, or Waikoloa Beach Resort, you’re likely in a permitted zone. If it’s in Volcano, Captain Cook, or a rural residential area, the picture is more complicated.

Properties currently operating outside permitted zones may be able to continue under a nonconforming use certificate from the 2018 ordinance but the original pathway created under the 2018 ordinance is no longer available for new applicants.

One notable point worth highlighting: neither the current code nor the proposed bill requires the host to be the owner. The bill defines a “host” simply as a reachable person who resides on the same building site while the B&B is rented. That could be a family member, a tenant, or a property manager living on the parcel. The owner doesn’t need to be present at all. The bill does make owners and hosts jointly liable for any fines, which only makes sense if they’re treated as potentially different people.

Registration Deadline: July 1, 2026

Separate from Bill 147, the county already passed Ordinance 25-50 (Bill 47) requiring all TVR owners to register with the county. The registration portal is not yet live (the county is still building it) but the deadline is July 1, 2026. Once registrations are in place, the county plans to cross-reference its list against active Airbnb and VRBO listings.

Proposed registration fees:

• B&B (hosted): $250 initial, $100 annual renewal.
• STVR (unhosted): $500 initial, $250 annual renewal.
• Booking platforms (Airbnb, VRBO, etc.): $1,000 to operate legally in Hawaii County.

For updates on the registration process and to view the informational webinar recorded by the county, visit hawaiicountytar.com.

New Rules for How You Operate

Bill 147 adds a specific set of operational standards that don’t currently exist in county code. Most apply to both B&Bs and STVRs, with a couple of category-specific exceptions noted below.

Applies to both B&Bs and STVRs:

• Quiet hours from 10 p.m. to 8 a.m.
• Occupancy limits based on bedrooms, up to a maximum of 12 adults.
• No weddings, concerts, or large events.
• Gatherings must be residential in character: birthday parties, family dinners, picnics.
• Guest vehicles must park in designated on-site areas.
• All advertising must include your TVR registration number.
• Your street address must be visible from the road.

B&B specific:

• Breakfast may only be served to registered guests.

STVR specific:

• Individual bedrooms cannot be rented separately to multiple renters at the same time. The entire unit must be rented to one party.

Fines Are Real

The bill creates a dedicated enforcement fund and a new fine structure. First violation starts at $5,500. Second at $7,500. Third and beyond at $10,000. On top of that, fines include an additional amount equal to twice the highest daily rate the property was advertised at in the preceding 12 months, for each day the violation continues.

Here’s the part that should get your attention: if the county finds your property listed on Airbnb or VRBO, or bookable anywhere online, they can treat that as proof enough that you’re operating illegally. You then have to prove otherwise. The burden is entirely on you.

Why This Bill Exists

The county commissioned an economic impact study that found 8,008 active vacation rental listings on the Big Island as of March 2025. Kailua-Kona alone accounts for 43% of the island’s total STVR inventory. According to separate research from UHERO, roughly 40% of Kailua-Kona’s housing stock is classified as vacation rentals.

The study also found that only about 3,500 of those 8,008 units are currently registered, meaning roughly half are unregistered. The county estimates it is missing approximately $12 million in Transient Accommodations Tax and $1.6 million in General Excise Tax annually as a result. Registration and enforcement are largely aimed at closing that gap.

It’s also worth noting what the study found about owners: 54% rely on rental income to cover housing costs, and only 4% said they would convert to long-term rentals if STVRs were restricted. This is not primarily an investor story. Most operators are individuals with a personal financial stake.

What This Means If You’re Buying or Selling

If you’re selling a vacation rental, expect buyers to ask hard questions about zoning classification, registration status, and whether the rental income is legally protected going forward. If you’re buying, the Airbnb reviews and rental history might look great on paper, but the regulatory picture needs to be clearly understood before you factor that income into your offer.

Honestly, any sophisticated buyer is going to want to know whether the rental can continue operating legally under these new rules. That conversation needs to happen early.

Bottom Line

Bill 147 is still in committee and subject to change, but the direction is clear: the county is getting more serious about vacation rental compliance. Whether you own a rental today or are considering buying one, understanding how your property is classified under this framework is the right first step.

I’ll continue posting updates as the bill moves forward. You can also follow the Civil Beat coverage here.

Resources

Legislation

• Bill 147 (proposed operational standards and enforcement)
• Ordinance 25-50 / Bill 47 (TVR registration requirement)
• Ordinance 2018-114 / Bill 108 (original 2018 STVR rules)

Official County Resources

• Hawaii County Planning Dept: Short-Term Vacation Rentals
• Hawaii County TAR information and registration webinar

Research & News

• Hawaii County Economic Impact Study on STVRs (Hunden Partners, June 2025)
• Civil Beat: Vacation Rental Owners Could Face New Hawaii County Rules (April 2026)

Heads up: I’m a licensed real estate agent, not a land use attorney or vacation rental specialist. This post is for general informational purposes only. For advice specific to your situation, please consult a qualified land use attorney.