Hawaii is one of the most visited destinations in the world, but that doesn't automatically make it a great place to invest in a short-term rental. With strict local regulations and high property costs, not to mention competitive markets, buying an Airbnb in Hawaii is definitely an investment. That said, the right places still hold real opportunity. The best Airbnb markets in Hawaii are both popular and dependable. They offer staying power in a landscape that's constantly shifting, with numbers that hold up long after the busy season ends.
Here are our top picks for the best Airbnb markets in Hawaii:
- Mountain View, HI: Best up-and-coming market
- Kihei, HI: Best for beachfront vacation homes
- Volcano, HI: Best for a more affordable entry-point
- Waianae, HI: Best area for low competition
- Kapolei, HI: Best for growing development
How we picked the best Airbnb markets in Hawaii
Rather than start with the usual hot spots, we let the data lead. Some markets confirmed what you might expect, but others surprised us by quietly outperforming better-known destinations thanks to booking behaviors that fly under the radar.
Here's what we focused on:
- Legal clarity: Hawaii's short-term rental rules vary island to island, so we prioritized areas with established STR laws that are still mostly favorable to hosts.
- Volume and seasonality: Markets with strong year-round demand or reliable seasonal peaks.
- Revenue consistency: Not every market with a high nightly rate is actually profitable. We looked for markets where occupancy and ADR work together to deliver reliable income, with data sourced from SummerOS.
- Property mix: We favored markets that offer flexibility (i.e., a variety of homes that work for couples or families).
- Momentum: We considered which markets have long-term staying power, not just temporary hype.
We finally narrowed it down to five areas representing five distinct opportunities across Hawaii, each with its own reason to stand out. Not every market will be right for your strategy, but each one is worth a closer look.
Now with SummerOS, you can analyze revenue, market trends, and occupancy rates for every market in the U.S. From revenue projections to competitive set analytics, SummerOS empowers you to build your Airbnb portfolio with confidence. Find your next investment opportunity with SummerOS!
1. Mountain View, HI: Best up-and-coming market
Mountain View is a quiet Big Island community poised for growth. Tucked between Hilo and Hawaii Volcanoes National Park, it offers a strategic location that adventurous travelers are just starting to discover.
It has less than 100 short-term rentals in the area, so competition is low, and early hosts can capture demand before the crowd catches on. The vibe here is rural and authentic, giving guests a taste of local Hawaii far from the big resorts.
Property prices in Mountain View are relatively affordable by Hawaii standards, with an average home priced around $484,412. This lower barrier to entry makes it attractive for new investors looking to break into the market. Annual gross rental revenue averages $37,867, which might seem modest next to Hawaii's pricier locales, but it reflects a solid return against the cheaper home prices.
Plus, an ADR of $170 and roughly 69% occupancy indicate steady bookings throughout the year, and there's plenty of room to grow those numbers as tourism in the area increases.
What makes Mountain View truly "up-and-coming" is its untapped potential. The town sits just 15 miles from the volcanic wonders of Kilauea and scenic hikes, yet it's not flooded with listings, a golden opportunity rarely seen in this state.
2. Kihei, HI: Best for beachfront vacation homes
Kihei on Maui embodies the classic Hawaiian beach getaway, making it a superstar for vacation rentals. This sunny South Maui town boasts miles of golden shoreline and calm, swimmable waters. It's the kind of area travelers pay a premium for.
It's no surprise Kihei has about 1,700 active rentals, one of the largest short-term rental markets in the state. Vacationers flock here for the beachfront condos and homes, keeping the occupancy rate at a strong 76%.
Note that Kihei's popularity comes with a high price tag. The average home price is roughly $2,193,957, reflecting the premium for owning property near Maui's world-class beaches. While the buy-in cost is steep, the rental income is correspondingly robust. Kihei's short-term rentals generate about $77,594 in annual gross revenue on average, thanks to an ADR of $334 per night.
Guests are clearly willing to pay a premium for ocean views and immediate beach access, and high demand and high rates mean hosts can see healthy returns despite the hefty investment.
3. Volcano, HI: Best for a more affordable entry-point
Volcano (often called Volcano Village) is a market that proves you don't need a multi-million dollar property to succeed with Airbnbs in Hawaii. This small town sits on the border of Hawaii Volcanoes National Park, serving as the gateway for travelers eager to see Kīlauea's lava flows and explore the park's landscapes.
With an average home price around $503,514, Volcano offers one of the most affordable entry points in the state. For investors, that means the dream of owning a Hawaiian vacation rental is much more attainable here than in the big resort towns.
Despite the lower prices, the earning potential remains attractive. Volcano's short-term rentals (just over 100 units in total) earn roughly $42,421 in annual gross revenue on average. Nightly rates are about $194 ADR, and occupancy hovers near 72%, showing consistent demand.
Tourists may come primarily for the national park, but they also appreciate the unique stay experience Volcano provides, and many visitors opt to spend a night or two here to see the volcano by day and stargaze by night rather than doing a long drive from the coast. That means a well-run Airbnb in Volcano can count on a steady stream of nature lovers and park-goers.
4. Waianae, HI: Best area for low competition
If you're looking for a high-demand market without dozens of rival listings on the same block, Waianae on Oahu's west coast is a great choice. This area has only about 120 short-term rentals–surprisingly low given Oahu's popularity–which means hosts face far less competition than in tourist hubs like Waikiki.
And yet, the demand is definitely there: Waianae's occupancy rate averages around 81%, the highest of any market on this list. Guests are booking almost every available night, a clear sign that supply hasn't kept up with interest.
Waianae's appeal lies in its beautiful, uncrowded beaches and authentic atmosphere. Visitors who venture out here can enjoy stretches of coastline with a fraction of the crowds found in Honolulu.
And, because traditional hotels are scarce on Oahu's Leeward side, vacation rentals pick up the slack; often larger groups or families rent houses here as a peaceful alternative to the city. This dynamic pushes the ADR to about $517 per night. Guests are willing to pay a premium for these homes, especially since there are so few options to begin with.
Waianae's numbers are eye-opening. An average gross revenue of $139,735 per year per rental means strong cash flow potential. Meanwhile, the average property price is around $683,934, significantly less than Honolulu's glitzy neighborhoods.
This combination of moderate home prices and high income is rare in Hawaii, and represents a high-reward opportunity where a host can really stand out from the pack and reap the benefits of an underserved market.
5. Kapolei, HI: Best for growing development
Kapolei, located on Oahu, is known as the "Second City" of Honolulu, and it's living up to that name with rapid growth and development. For Airbnb investors, Kapolei's expansion translates into a market brimming with future potential.
This master-planned community features new shopping centers, businesses, and family attractions yet, surprisingly, the short-term rental scene here is still relatively quiet with only about 100 rentals currently listed. Low inventory amid a growing population and increasing tourism makes for excellent opportunities–if you get in early.
The performance metrics for Kapolei's existing rentals are nothing short of impressive. The average daily rate is a whopping $807 while properties still maintain about 79% occupancy over the year. That combination yields an average gross revenue of $184,399 annually.
With an average home price around $1,037,751, Kapolei isn't cheap, but it's a relative bargain compared to Honolulu's priciest districts. Importantly, buying in Kapolei means investing in a booming area, and property values here have been rising as new developments come online.
Is Hawaii good for Airbnb investments?
Hawaii is an excellent environment for Airbnb and other short-term rentals, provided you choose the right market and research the regulations. The islands as a whole benefit from a year-round tourism season, driven by Hawaii's tropical climate.
The five best Airbnb markets in Hawaii show consistently high occupancy and strong nightly rates. This means that well-run rentals can generate steady income throughout the year, not just during peak seasons. There's strong demand for a variety of rental experiences–you just need to find the right niche.
If you want to explore Hawaii's STR opportunities even further, SummerOS can turn insights into action. With SummerOS, you get up-to-date STR data and trends for every Hawaii market. Use SummerOS to compare revenue projections, occupancy rates, ADR, and home prices side by side, so you can identify the perfect spot for your next Airbnb investment.
Try SummerOS to see what's working in Hawaii, and find your next Airbnb investment today!
