The Value of Residential STVRs in Hawaii County: Why Grandfathered Properties Like Puako 143 Are More Valuable Than Ever
As we enter 2026, many buyers and investors are asking the same question: “What is really worth owning in Hawaii right now?” The answer is becoming clearer every year: grandfathered residential Short-Term Vacation Rentals (STVRs) are extremely valuable and will remain so long-term.
Puako 143, a rare, permitted residential STVR in one of the Big Island’s most desirable seaside communities, is a prime example.
What You Need to Know About Residential STVRs in Hawaii County
Understanding Hawaii County’s STVR rules is key to appreciating properties like Puako 143.
Hawaii County stopped approving new residential STVRs on April 1, 2019. Today, short-term rentals are generally allowed only if they were lawfully operating before that date.
- Existing residential STVRs remain valid
- Licenses can be transferred to new owners
- No new residential STVR licenses can be created
This has turned licensed residential STVRs into a finite, diminishing asset class. Once they are gone, they are gone for good.
From an investment perspective, scarcity drives value.
Why Grandfathered STVRs Are So Valuable
Owning a residential STVR provides multiple layers of value:
- Income Generation: A well-run STVR can generate substantial rental income.
- Lifestyle Flexibility: Owners can enjoy the home while earning income when not in use.
- Future Security: Ideal for second homes that can later become retirement residences.
- Investor Appeal: Legal income properties outside resort zones are increasingly rare.
Puako 143 meets all of these criteria.
Puako 143: A Great Example of STVR Value
Puako 143 is a permitted residential STVR located at the quiet south end of Puako Beach Drive. It has been tastefully renovated and performs exceptionally well as a vacation rental.
The property generates approximately $100,000 in net annual income, helping owners:
- Offset mortgage payments
- Cover taxes, insurance, and upkeep
- Lower total cost of ownership
- Increase long-term ROI
In short, this property works for you.
Flexible Living, Designed for Income and Enjoyment
Upstairs features:
- Three bedrooms and two bathrooms
- Open-concept living space
- Large covered lanai for entertaining
Downstairs includes a private studio with:
- Private patio
- Garden views
- Separate living space for guests or renters
This dual-living layout provides excellent flexibility for owners.
The Best of Outdoor Living
- Mauka lanai: Forest and Mauna Kea views
- Makai lanai: Ocean breezes and water views
The lot allows for excellent privacy and future enhancements.
ADU Potential: Thinking Ahead
Puako 143 aligns with Hawaii’s ADU rules, allowing for:
- Additional living space
- Long-term rental opportunities
- Multi-generational living
- Added resale value
Learn more at hawaiiadu.org.
Starting 2026 with a Smart, Strategic Move
No new licensed residential STVRs are being created, but existing ones are still transferable. Homes like Puako 143 represent both lifestyle and long-term investment value.
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