Maui H3/H4 Zoning Update: Planning Commission Approves, Council Next

If you’ve been watching Maui’s short-term rental and zoning conversation, you may recall my earlier deep dive into the proposed changes and TIG recommendations. In mid-2025, the Maui Planning Commission took a step that matters a lot for owners and investors: it approved the process to move forward with creating these new zoning categories. 

Here’s what that means in plain language and why it’s a positive sign for Maui’s long-term market, even if things don’t move overnight.

Lahaina, West Maui

What H3 and H4 Zoning Actually Are

In very simple terms:

• H3 and H4 are proposed hotel-type zoning districts that would mirror the existing A-1 and A-2 apartment-zone standards, but allow transient vacation rentals (TVRs) as an outright permitted use.
• Right now apartment-zoned properties face restrictions on short-term rentals under Bill 9, but H3/H4 zoning is designed to give certain properties a legal long-term path to continue operating as visitor accommodations where that makes sense.

In many ways, H3 and H4 simply recognize a reality on Maui — some properties were built to house our community, while others were designed to welcome visitors.

What Happened — and What’s Next?

The Maui Planning Commission advanced a proposal that would create two new hotel zoning districts — H3 and H4 — in August 2025. It’s a meaningful milestone, though still just the early stages of the process.

1. Public Notice: Now that the Planning Commission has taken its first vote, the proposal enters the County’s normal process, including a public notice period before it moves to the Maui County Council.
2. Maui County Council Vote: The next formal decision point is a vote by the Maui County Council on whether to adopt the ordinance creating H3 and H4 zoning.
3. Potential Final Outcomes: Once H3/H4 is established, affected properties would still need to individually apply for rezoning (via a Conditional Improvement Zone or similar process) to move from A-1/A-2 to H3/H4.

Key Decision Ahead

Council approval is required to actually establish these new zoning categories in the Maui County Code.

In other words: H3/H4 zoning is the box.

Each property still has to be placed into that box through a separate, project-specific review.

Why the TIG “No” Vote Isn’t a Death Knell

You may have heard that the TIG’s push for an immediate island-wide upzone didn’t pass. Their plan to fast-track H3/H4 for a select group of properties wasn’t adopted, and the Planning Commission decided against a blanket fix.

Simply put: there’s no quick one-size-fits-all solution. Any changes will go through the normal process, and each building will have to individually apply for zoning changes.

The Reassuring Part

• The fact that H3 and H4 districts advanced through the Planning Commission shows that county leaders broadly agree such zoning is necessary for Maui’s future.
• The decision to pass on a rushed, one-size-fits-all approach shows that the focus is on thoughtful planning — not a rejection of visitor-focused properties.

Overall, Maui is working toward a balanced, long-term solution that protects housing for residents while still allowing appropriate visitor accommodations.

Key Takeaways for Owners and Investors:

• H3/H4 zoning could provide a clear legal path for certain properties to continue operating as visitor accommodations.
• Some older or visitor-oriented properties may naturally fit these new categories.
• Owners currently operating TVRs should start thinking about strategic positioning if rezoning opportunities emerge.

Timeline Snapshot: Where We Stand

This is a deliberately paced process—not a lightning-strike change. It gives owners time to plan and adjust.

What This Could Mean for Investors

Visitor-Focused Zones Succeed

If H3/H4 is adopted, properties clearly geared toward visitors could rezone successfully, helping preserve value in many TVR-heavy buildings.

Case-by-Case Approach

The Council might approve rezoning one property at a time, reviewing each project carefully based on location and building characteristics.

Prioritizing Housing Where it Makes Sense

In some areas, the county may keep existing zoning to support long-term housing and protect Maui’s residential neighborhoods.

It’s about matching the right property type with the right zoning and use—and being positioned early.

The Perspective from a Local Professional

Although it’s been a rocky road, this period is more of a thoughtful recalibration than a crisis. Working with buyers, sellers, and investors every day, I see how carefully leaders are trying to balance housing needs, visitor accommodations, and property rights.

For owners and investors, that means:

• Understanding how your property fits into the future zoning map.
• Being proactive with strategy and professional guidance as the process unfolds.

The path forward may not be overnight, but it points toward a more stable and predictable Maui market.

If you’re curious how your property might line up under H3/H4, I’d be happy to walk through it with you.