By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: Deed-restricted homes on Maui are sold below market to income-qualified buyers under Maui County Code Chapter 2.96. After the County’s 2025 overhaul (Bill 40, Ordinance 5875), restrictions on for-sale workforce units run 8 to 15 years depending on income tier and home type, and resale prices are capped by a County formula. The 2026 Maui median income is $131,500 for a household of four.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and here’s how deed-restricted homes on Maui work in 2026: who can buy them, what the restrictions mean when you sell, and how they differ from state-financed projects. With the countywide single-family median at $1,150,000 in September 2026 (REALTORS® Association of Maui data via Maui Now), these homes are one of the main paths to ownership at a lower price, but they come with rules that stay with the property.

General information, not tax or legal advice. Confirm your situation with a Hawaiʻi attorney and the agency that oversees the project.

What is a deed-restricted workforce home on Maui?

A deed-restricted workforce home is a unit a developer must sell at a capped price to an income-qualified buyer, with resale and occupancy rules recorded against the property. Under Chapter 2.96, the Residential Workforce Housing Policy, buyers can have gross income and assets of up to 140% of area median income (the Housing Director can waive the asset limit). For-sale units are split into three tiers:

• Below-moderate: 80–100% of AMI (30% of units)
• Moderate: 100–120% of AMI (50% of units)
• Above-moderate: 120–140% of AMI (20% of units)

The County Council gave final approval to the Bill 40 revisions in late October 2025, and the County’s published ordinance is numbered 5875.

How long do Maui deed restrictions last after the 2025 changes?

Restriction periods now depend on the income tier and whether the home is single-family or multifamily. They’re longer than before:

Income tier	Multifamily / two-family	Single-family	Before Bill 40 (all units)
Below-moderate	12 years	15 years	10 years
Moderate	10 years	12 years	8 years
Above-moderate	8 years	10 years	5 years

Workforce units built on County-owned land are restricted in perpetuity. Based on the committee version of Bill 40, the owner-occupancy rule also became permanent, with an option to rent long-term at capped rents and hardship waivers for active military duty, medical relocation or temporary work off-island.

What are the 2026 income limits for Maui County?

The County Department of Housing’s 2026 Affordable Sales and Rental Guidelines (prepared June 1, 2026) use a HUD median of $131,500 for a household of four on Maui island, excluding Hāna. For four people, that works out to:

AMI level	Household of four	Sample max price, 3-bed single-family	Sample max price, 3-bed multifamily
80%	$105,200	$481,300	$433,200
100%	$131,500	$601,700	$541,500
120%	$157,800	$722,000	$649,800
140%	$184,100	$842,300	$758,100

The sample prices assume principal and interest at 28% of gross income, a 5.000% rate, 5% down and a 30-year fixed loan, with no County subsidy. Hāna, Lānaʻi and Molokaʻi use their own adjusted medians.

One thing to watch: the state’s housing agency, HHFDC, published separate 2026 Maui County guidelines (effective May 1, 2026) that use $148,000 as 100% for a household of four. State-financed or HRS Chapter 201H projects follow HHFDC’s chart, while County 2.96 units follow the County’s. Always check which chart applies to the project you’re looking at.

How does resale work on a Maui County workforce home?

When you decide to sell during the restriction period, you must notify the Department of Housing, and the County gets the first option to buy. Under the Bill 40 text, the County has 60 days after written notice (down from 90). If the County passes, you sell to another income-qualified buyer at a price the Department approves.

The resale cap uses two appraisals: one done before you move in and one when you decide to sell. Your maximum resale price is your purchase price plus 25% of the difference between those appraisals. So if your home appraised $300,000 higher at resale than at purchase, your cap would be your price plus $75,000.

How are state HHFDC resale rules different?

Homes sold under HHFDC programs follow HRS §201H-47. For 10 years after purchase, HHFDC has the first option to buy back the home at your original cost plus improvements plus 1% simple interest per year. HHFDC’s shared appreciation equity program has no time limit, and HHFDC’s share is due when you sell, transfer or rent. Under both programs, everyone on title must live in the home.

Are any Maui affordable for-sale programs open this fall?

A few, and they’re narrow:

• Lahaina Community Land Trust opened a homebuyer portal in April 2026 for people whose home was damaged or destroyed in the August 8, 2023 fire, with income up to $300,000 or 140% of AMI. Homes use a 99-year ground lease, and resale appreciation is fixed at 1.5% a year.
• Nā Hale O Maui broke ground in April 2026 on seven four-bedroom land-trust homes at the Fairways at Maui Lani in Kahului, estimated at $425,000–$525,000 on a 99-year ground lease.
• Hoʻokumu Hou, the County’s wildfire-recovery first-time buyer program offering up to $600,000 in forgivable assistance, is closed to new applicants.

Land-trust homes are leasehold: you own the house, but the land is leased. I explain what that means in my guide to leasehold vs fee simple on Maui. For low-rate financing, see my post on first-time homebuyer programs on Maui.

My Take: What I’m Telling Buyers About Deed-Restricted Homes

A deed-restricted home can cost hundreds of thousands of dollars less than a market-rate home, but I’d treat it as a home to live in, not an investment. With 25% of appreciation going to you under the County formula, and possibly a 10-to-15-year restriction, your equity grows more slowly than on an open-market purchase. That trade-off is the point of these programs, and it should be part of your plan from day one.

Before you apply, I’d do three things. First, find out which agency oversees the project and get its income chart, because the County and HHFDC numbers differ. Second, read the actual recorded restrictions, not a summary, with a Hawaiʻi attorney. Third, get pre-qualified with a lender who has closed deed-restricted loans, since some lenders won’t.

Sellers of these homes should start with the Department of Housing before talking about price. The County’s first option and the resale cap set the ceiling, so it’s worth knowing that number before you plan your next move.

FAQ

Can I rent out a deed-restricted home on Maui?
Only as the restrictions allow. Under the Bill 40 text, the alternative to owner-occupancy is a long-term rental at a capped rent, plus limited hardship waivers. Short-term rental isn’t part of it.

What happens when the restriction period ends?
The resale cap and County buyback option end, but check your recorded documents for any continuing occupancy terms.

Does the County deed restriction apply to HHFDC projects?
No. HHFDC-financed homes follow state rules under HRS §201H-47.

Where do I find open lotteries?
Check the County Department of Housing and HHFDC websites, and each developer’s sales office.

Ask Benjamin

If you’re comparing a deed-restricted home with an open-market condo or home, I’m Benjamin Finnerty, and I can help you look at the price, restrictions and long-term numbers side by side. Call or text 808-481-9748 or email benjamin@the808team.com.

Sources: County of Maui (Ordinance 5875 / Bill 40 CD1 committee report; Department of Housing 2026 Affordable Sales and Rental Guidelines); HHFDC 2026 Maui County Income and Sales Price Guidelines; HRS §201H-47; Hoʻokumu Hou program policy; Maui Now (Oct. 12 and 26, 2025; Apr. 4 and 27, 2026; May 16, 2026; Oct. 9, 2026).