Land Use & Zoning
What is 'Maui County's Short-Term Rental Home' (STRH) permit and its significance?
AA. A permit required for all long-term rentals in Maui
BB. A county permit allowing residential properties to operate as vacation rentals; limited in number and restricted to specific zones, reflecting Maui's attempt to balance tourism with residential housing needs✓ Correct
CC. A state permit for all vacation rentals on all islands
DD. A federal permit required under the Clean Water Act for ocean-view rentals
Explanation
Maui County's Short-Term Rental Home permit program limits where and how many vacation rentals can operate. STRHs are restricted to designated resort/hotel zones (and limited residential zones), with caps on permits.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
1031 ExchangeA tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
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