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

Quick Answer: Maui County’s new Affordable Long-Term Rental Exemption (form DFT-467) is open for the 2027 assessment year, with a filing deadline of Thursday, December 31, 2026. To qualify, monthly rent can’t exceed 70% of HUD’s Fair Market Rent: $1,400 for a one-bedroom, $1,837 for two, $2,379 for three and $2,965 for four bedrooms, under a lease of at least 12 months.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and the Maui affordable long-term rental exemption is one of the more useful property tax changes of the year for owners deciding what to do with a condo or ʻohana. It’s separate from the long-term rental exemption many landlords already use. Here’s how it works, as of the County’s form revised April 24, 2026.

General information, not tax or legal advice; confirm with a CPA or Hawaiʻi attorney.

What is Maui’s Affordable Long-Term Rental Exemption?

It’s a real property tax exemption, under Maui County Code Chapter 3.48.467, for dwelling units rented long-term at or below set rent limits. The Council’s Special Committee on Real Property Tax Reform advanced the idea as Bill 168 in January 2026, describing it as an incentive for homes rented at no more than 70% of HUD’s Fair Market Rent, starting with the tax year that begins July 1, 2027.

Eligibility is measured on January 1, 2027, and the exemption shows up on the following July tax bill.

What are the rent limits?

The County’s form lists these maximum monthly rents:

Unit size	Maximum monthly rent (DFT-467, 2027 assessment year)
1 bedroom	$1,400
2 bedrooms	$1,837
3 bedrooms	$2,379
4 bedrooms	$2,965

Those caps line up with 70% of HUD’s fiscal year 2026 Fair Market Rents for the Kahului-Wailuku-Lahaina area (for example, $2,000 for a one-bedroom and $2,624 for a two-bedroom). HUD’s FY2027 rents took effect October 1, 2026 and are slightly higher for smaller units, so confirm with the Real Property Assessment Division which figures apply when you file. My post on Maui Fair Market Rents for 2027 has the full HUD table.

If your rent is above the cap, the form directs you to the regular Long-Term Rental Exemption application instead.

Who qualifies?

The form’s requirements are specific. As of the 2027 form:

• The unit must be occupied on January 1 of the assessment year.
• The lease must be signed and run at least 12 consecutive months with the same tenant. Six-month and month-to-month leases don’t qualify.
• The tenant must be a natural person with no other place of residence.
• Renting a single bedroom doesn’t count; it has to be a dwelling unit.
• Owners can’t rent to themselves, and owners, corporate officers or members, and partners with an ownership interest are excluded.
• Commercial portions are excluded, and properties in the “commercialized residential” class aren’t eligible.
• Section 8 tenants can qualify with a current signed lease.
• Only one affordable long-term rental exemption is allowed per parcel.

You’ll need a copy of the signed lease, and the bedroom count, rent and lease dates on the form must match it.

How does this compare with the regular long-term rental exemption?

The regular exemption has no rent cap. According to the County’s FAQ, it provides up to $200,000 on a parcel occupied as a long-term rental for 12 or more consecutive months by the same tenant, or an additional $100,000 for an owner who also has a home exemption on the property. Applications are due December 31 with a signed lease.

The County’s form for the affordable version describes its own exemption amounts and conditions, so read it closely or call the Real Property Assessment Division at (808) 270-7295 before you set rent around it.

Why does the tax class matter so much?

Maui’s fiscal year 2027 rates (Resolution 26-69, effective July 1, 2026) show the gap:

Class (FY2027, first tier)	Rate per $1,000 of net taxable value
Owner-occupied (up to $1.5 million)	$1.65
Long-term rental (up to $1.5 million)	$2.90
Non-owner-occupied (up to $1 million)	$6.25
TVR-STRH (up to $900,000)	$13.00

As a simple illustration, on a condo with a $600,000 net taxable value before exemptions, the non-owner-occupied rate works out to about $3,750 a year. In the long-term rental class with the standard $200,000 exemption, it’s about $1,160 ($400,000 x $2.90 per $1,000). Your actual bill depends on your assessment and classification. I walk through the other taxes on rental income in my post on GET for long-term landlords.

What happens if the lease ends or circumstances change?

You have to keep the County informed. Per the form, if the lease ends before October 1 of the following assessment year, you must reapply, and any change in status must be reported to the assessor within 30 days. Misstatements can lead to disqualification and penalties, and may be treated as a misdemeanor under County code.

My Take: What I’m Telling Owners and Buyers

For owners who are switching a vacation-rental condo to long-term tenants, the transition is, for the most part, fairly simple. The one thing I tell them to pay attention to is the property’s assessed tax use and the dates when that changes, because there’s a significant difference between the tax basis for a long-term rental and a short-term rental. With this exemption, January 1 eligibility and the December 31 filing deadline are the dates to put on the calendar.

Whether renting at the cap makes sense is a numbers question. Compare the rent you’d give up against the tax savings, and include association dues, insurance and GET. For some smaller units the gap between market rent and the cap may be modest; for others it may be large. If you’re buying a condo with a long-term rental plan, ask for the current tax classification and exemptions before you write an offer.

Frequently Asked Questions

What is the deadline for Maui’s Affordable Long-Term Rental Exemption?

December 31, 2026, for the 2027 assessment year, per County form DFT-467.

What is the maximum rent for a two-bedroom?

$1,837 a month on the 2027 form, which is 70% of HUD’s FY2026 Fair Market Rent for Maui.

Can I use a six-month lease?

No. The lease must run at least 12 consecutive months with the same tenant.

Can I get more than one affordable exemption?

Only one per parcel, according to the form.

Where do I file?

With the County of Maui Real Property Assessment Division, 110 ʻAlaʻihi Street, Suite 110, Kahului, or by email at rpa.ltr@co.maui.hi.us.

Ask Benjamin

If you’re weighing long-term tenants against selling, I’m Benjamin Finnerty, and I’m happy to pull recent sales and rents for your building so you can compare the options. Call or text 808-481-9748 or email benjamin@the808team.com.

Sources: County of Maui, Claim for Affordable Long-Term Rental Exemption, form DFT-467 (rev. 4/24/2026); County of Maui Long-Term Rental Classification & Exemption FAQs; Maui County Council Resolution 26-69, FD2 (May 15, 2026); Maui Now (Jan. 10, 2026); HUD FY2026 and FY2027 Fair Market Rents.