Exploring Hawaii's Premier Airbnb Investment Hotspots

If you're an Airbnb investor looking to capitalize on Hawaii's thriving tourism industry, this article is your comprehensive guide. We delve into some of the most promising Hawaiian locations for Airbnb investment, including Mountain View, Volcano, Kapaa, Hana, Maui, Naalehu, Kaunakakai, and Hilo. Each market is analyzed in terms of ROI, average daily rates (ADR), occupancy rates, and their unique appeals to tourists. Read on to identify the ideal Hawaiian market for your Airbnb investment strategy.

Discovering the finest Airbnb markets throughout the United States has never been easier with Awning's Top Airbnb Market tool. Updated monthly, this comprehensive tool offers rankings and direct links to the Airbnb data of each market, empowering you to make well-informed decisions.

To make your investment decision easier, here's a snapshot of Hawaii's top Airbnb markets and what they're best for:

1. Mountain View, HI - Best for investors seeking returns in a growing tourist hotspot
2. Volcano, HI - Ideal for nature lovers and those looking for affordability
3. Kapaa, HI - Perfect for long-term investment with steady returns
4. Hana, HI - Best for investors interested in luxury and unique experiences
5. Kapolei, HI - Ideal for those targeting an area with limited hotel rooms
6. Naalehu, HI - Best for capitalizing on the trend of eco-tourism
7. Kaunakakai, HI - Perfect for those looking to fill the gap in accommodations
8. Hilo, HI - Ideal for tapping into increasing tourism and proximity to popular attractions

1. Mountain View, HI

Mountain View, HI is quickly becoming a top market for Airbnb investors due to its unique location and stunning natural attractions. Situated near Hawaii Volcanoes National Park, this small town offers visitors breathtaking views of Mauna Loa and Kilauea volcanoes. This has led to a surge in demand for short-term rentals in the area, making it an attractive investment opportunity for those looking to capitalize on the growing tourism industry in Hawaii.

Investors in Mountain View, HI can expect a solid return on investment, with an average ROI of 12%. The average daily rate for Airbnb rentals in the area is $127, with an impressive occupancy rate of 86%. This translates to an annual revenue of $27k for a single Airbnb property. While the market size is relatively small, with only 86 Airbnb listings, the high demand for short-term rentals in the area makes it a lucrative opportunity for investors.

Investors should consider the average Airbnb price of $245k when evaluating potential properties in Mountain View. While the price may vary, it's essential to assess the potential rental income against the purchase price to ensure a profitable investment. Additionally, keeping an eye on local events and activities, such as lava viewing tours or cultural events, can help investors align their marketing efforts and maximize occupancy rates during peak periods.

When it comes to your Airbnb property, create a tranquil and inviting retreat that complements the natural beauty of the area. Incorporate elements of Hawaiian culture and aesthetics into the decor, allowing guests to immerse themselves in the island's rich heritage. Consider providing outdoor spaces where guests can relax and soak in the surrounding lush greenery and volcanic vistas.

To attract guests, position your property as a gateway to unforgettable experiences. Highlight nearby activities such as hiking trails, scenic drives, and opportunities for wildlife spotting. Promote the chance to witness the fiery glow of lava at night, a spectacle that draws visitors from around the world. Provide guests with recommendations for local farmers' markets, where they can sample fresh tropical fruits and locally grown produce.

By showcasing the natural wonders of the area, creating an inviting retreat, and providing guests with access to unforgettable experiences, you can position yourself for success in this captivating destination. With a strong occupancy rate and an average daily rate that reflects the value of the location, Mountain View offers an enticing opportunity for investors seeking a profitable venture in the short-term rental market.

2. Volcano, HI

Volcano, HI is a top market for Airbnb investors due to its unique location and proximity to Hawaii Volcanoes National Park. The area offers a one-of-a-kind experience for travelers looking to stay in a rainforest and explore the natural wonders of the park. This has led to a high demand for Airbnb rentals in the area, making it an attractive investment opportunity for those looking to capitalize on the tourism industry.

With an estimated ROI of 9%, Volcano offers a promising return on investment compared to many other markets. The market's average annual revenue per listing is projected to be around $41k, considering the ADR of $158 and an impressive occupancy rate of 84%. Despite being a small market, with 402 Airbnb listings, there is still room for investors to establish their presence and cater to the growing demand for one-of-a-kind stays in the heart of a tropical rainforest.

When evaluating potential properties in Volcano, investors should consider the average Airbnb price of $485k. It's essential to assess the potential rental income against the purchase price to ensure a profitable investment. Additionally, understanding the unique aspects of the market, such as the appeal of staying in a rainforest, can help investors highlight these features in their property listings and attract guests.

To maximize the potential of your investment, highlight the unparalleled natural wonders and experiences that Volcano offers. Showcase the proximity to Hawaii Volcanoes National Park, where guests can witness the power and beauty of active volcanoes, explore lava tubes, and hike through diverse landscapes. Emphasize the chance to immerse oneself in the tranquility and mystique of a rainforest environment, surrounded by lush vegetation, native bird species, and unique flora and fauna.

When designing your Airbnb property, create a harmonious blend of comfort and nature. Incorporate elements of the rainforest into the interior design, such as natural textures, earthy colors, and botanical accents. Consider providing outdoor spaces, like private gardens or lanais, where guests can unwind amidst the serenity of the rainforest setting.

To attract guests, position your property as a gateway to unforgettable experiences. Highlight nearby activities such as hiking trails, scenic drives, and opportunities for wildlife spotting. Promote the chance to witness the glow of active lava during nighttime visits to the national park, an awe-inspiring spectacle that leaves a lasting impression. Offer guests recommendations for local cultural events, such as traditional hula performances or lei-making workshops.

Volcano, HI is an attractive market for investors looking to capitalize on the allure of Hawaii Volcanoes National Park and the unique experience of staying in a rainforest. With a strong occupancy rate and an average daily rate that reflects the value of the location, Volcano offers an enticing opportunity for investors seeking a profitable venture in the short-term rental market.

3. Kapaa, HI

Kapaa, HI is a top market for Airbnb investors due to its high demand for vacation rentals. The city is located on the eastern coast of Kauai and is known for its stunning beaches, hiking trails, and waterfalls. With year-round warm weather, Kapaa attracts tourists from all over the world, making it a profitable investment for Airbnb hosts.

The estimated ROI of 7% in Kapaa showcases the potential for investors to generate a favorable return on their investment. The market's high average annual revenue per listing of $56k, which is influenced by the market's ADR of $228 and an impressive occupancy rate of 90%, further emphasizes the profitability of investing in short-term rentals in Kapaa.

Kapaa's beautiful beaches and the wide range of outdoor activities available, such as surfing, hiking, snorkeling, and exploring nearby natural attractions, contribute to its popularity as a vacation destination. Tourists seeking a tropical paradise often look for accommodations that offer convenient access to the beach and outdoor amenities, making properties in Kapaa highly desirable.

With 310 Airbnb listings in the market, there is a healthy level of competition, but the high demand for vacation rentals in Kapaa ensures a steady stream of bookings. Investors can further enhance their property's appeal by providing well-maintained accommodations with desirable amenities, such as beach equipment, outdoor seating areas, and fully equipped kitchens.

When considering investments in Kapaa, it's important to note the average Airbnb price of $787k. This indicates that properties in the area tend to be higher-priced, so investors should carefully assess the potential return on investment relative to the purchase price. Conducting thorough market research and property analysis is essential to ensure the investment aligns with their financial goals.

The potential for a positive ROI, high average annual revenue per listing, and strong occupancy rate make Kapaa an attractive choice for those looking to invest in short-term rentals. By providing well-maintained accommodations and understanding the preferences of travelers seeking a tropical getaway, investors can capitalize on Kapaa's popularity as a vacation destination and achieve success in this market.

4. Hana, HI

Hana, HI is a hidden gem and an excellent choice for investors looking to tap into the lucrative Airbnb rental market. Its secluded location and breathtaking natural beauty, including pristine beaches, lush rainforests, and stunning waterfalls, attract travelers seeking a tranquil and authentic Hawaiian experience. The limited availability of lodging options in the area further increases the value of Airbnb rentals, making them highly sought-after by visitors.

With an estimated ROI of 7%, investing in short-term rentals in Hana offers the potential for a favorable return on investment. The market's high average annual revenue per listing of $85k reflects the strong demand for accommodations in the area. This is influenced by the market's high ADR of $421 and an impressive occupancy rate of 95%, indicating a high demand for lodging options in Hana.

With only 84 Airbnb listings in Hana, there is limited competition, and the high occupancy rate indicates a consistent demand for accommodations. It's important to note that the average Airbnb price in Hana is $1.3M, reflecting the premium value of properties in the area and a high demand for unique and luxurious accommodations.

When designing your Airbnb property, aim for a harmonious blend of luxury and nature. Create an inviting retreat that reflects the local aesthetics, using natural materials, tropical-inspired decor, and open-air spaces that allow guests to connect with the surrounding environment. Provide upscale amenities and personalized services to enhance the guest experience, ensuring they feel pampered and well taken care of during their stay.

To attract guests, promote Hana as a sanctuary for relaxation, rejuvenation, and disconnection from the hectic pace of everyday life. Highlight the secluded nature of the destination, the chance to unwind on pristine beaches, and the opportunity to reconnect with oneself and nature. Encourage guests to explore the lesser-known gems of Hana, such as hidden beaches, secret waterfalls, and off-the-beaten-path attractions, offering them an authentic and unforgettable experience.

Investors who are drawn to Hana, HI are those who value natural beauty, seclusion, and a slower pace of life. This market is ideal for those who are looking to invest in high-end, luxury properties that offer a unique and authentic Hawaiian experience. With limited lodging options in the area, investors who are able to provide top-notch amenities and personalized service are likely to thrive in this market.

5. Kapolei, HI

Kapolei, HI is indeed a prime location for investors seeking profitable opportunities in the short-term rental market. Its proximity to popular beaches and attractions, such as Ko Olina Resort and Aulani, along with the overall appeal of Hawaii as a vacation destination, contribute to the strong demand for accommodations in the area.

With an estimated ROI of 8%, Kapolei presents an opportunity for investors to achieve a favorable return on investment. The city's strong tourism industry and limited supply of hotel rooms create a favorable market for Airbnb rentals. The high occupancy rate of 87% suggests a consistent demand for accommodations in Kapolei, while the ADR of $418 indicates a premium price that can be charged for rentals in this desirable location.

The market size of Kapolei is classified as small, with 121 Airbnb listings. This suggests a manageable level of competition for investors. However, it's important to monitor market trends and competition to ensure continued success in attracting bookings and maintaining high occupancy rates.

The average Airbnb price in Kapolei is $907k, indicating higher-priced properties within the market. Investors should carefully evaluate the potential return on investment relative to the purchase price and consider factors such as property maintenance, operational costs, and potential appreciation.

To maximize the profitability of Airbnb rentals in Kapolei, investors should highlight the unique features that make Kapolei an enticing destination. Emphasize the proximity to popular beaches, where guests can enjoy sun-soaked shores, water sports, and breathtaking sunsets. Showcase the city's vibrant attractions, such as shopping centers, dining establishments, and entertainment options. Additionally, emphasize Kapolei's strategic location, making it an ideal base for exploring the beauty of Hawaii's natural landscapes and experiencing the rich culture of the islands.

When setting up your Airbnb property, focus on providing an exceptional guest experience that captures the essence of Kapolei's allure. Create an inviting and comfortable environment with stylish decor, high-quality furnishings, and well-appointed amenities. Consider incorporating Hawaiian-inspired elements to offer guests a sense of place and a memorable stay.

With a high occupancy rate and an average daily rate, Kapolei offers a lucrative market for Airbnb investors. By highlighting the city's unique features, providing exceptional guest experiences, and implementing effective marketing strategies, you can position yourself for success and capitalize on the growing demand for vacation rentals in Kapolei.

6. Naalehu, HI

Naalehu, HI is an ideal opportunity for Airbnb investors looking to capitalize on the growing trend of eco-tourism and sustainable living. Located near Hawaii Volcanoes National Park, this small market offers a unique experience for travelers seeking an authentic Hawaiian experience.

With an ROI of 6%, an average daily rate of $125, an occupancy rate of 75%, and an estimated annual revenue of $27,000, Naalehu offers a favorable investment climate.

The market size in Naalehu is relatively small, with 57 active Airbnbs, which provides investors with a manageable market and room for growth.

To maximize your investment potential, emphasize the unique features that make Naalehu a standout destination. Highlight the proximity to Hawaii Volcanoes National Park, where guests can witness the awe-inspiring power of volcanic landscapes and explore a diverse range of outdoor activities such as hiking, lava viewing, and stargazing. Showcase Naalehu's commitment to eco-tourism and sustainable living, promoting the opportunity for guests to engage in responsible travel and immerse themselves in the natural beauty of the area.

When designing your Airbnb property, consider incorporating sustainable and eco-friendly elements that align with Naalehu's eco-conscious reputation. Use environmentally friendly materials, implement energy-saving practices, and showcase any green initiatives you undertake. Provide guests with information on local sustainable practices and encourage them to participate in preserving the natural environment during their stay.

To attract guests, market Naalehu as a destination that offers a unique blend of adventure, relaxation, and sustainable living. Highlight the natural wonders and outdoor recreational activities available in the area, such as hiking through lush rainforests, visiting stunning black sand beaches, or experiencing local cultural events. Emphasize the tranquility and serenity of Naalehu, promoting it as an ideal retreat for those seeking a peaceful getaway and a connection with nature.

Investors who are passionate about sustainable living and eco-tourism would do well in Naalehu, HI. This market offers a unique opportunity to cater to a niche market of travelers seeking an authentic and sustainable Hawaiian experience. With its growing popularity as a destination for eco-tourism, investors who prioritize sustainability and environmental responsibility can establish themselves as a top choice for visitors seeking a more conscious travel experience.

7. Kaunakakai, HI

Kaunakakai, HI is a good pick for Airbnb investors looking to capitalize on the growing tourism industry in Hawaii. With its pristine beaches, lush landscapes, and rich cultural heritage, the city offers a unique experience that attracts visitors from all over the world. What makes Kaunakakai particularly attractive to investors is the limited supply of accommodations, which drives up demand for vacation rentals and allows for higher rental rates.

The average revenue of $23k, with an average daily rate of $133 and an occupancy rate of 70%, indicates a steady stream of bookings and a healthy occupancy rate. These figures suggest that there is consistent demand for short-term rentals in Kaunakakai, making it a lucrative investment opportunity.

The market size of Kaunakakai is classified as small, with 32 Airbnb listings. This means that there is a manageable level of competition for investors, although it's essential to keep track of market trends and adjust strategies accordingly.

To maximize your investment potential, emphasize the unique features that make Kaunakakai an attractive destination. Highlight the stunning beaches where guests can enjoy sunbathing, swimming, and water activities such as snorkeling or paddleboarding. Promote the diverse range of outdoor activities available, including hiking, biking, and exploring the natural beauty of the island. Showcase the city's rich cultural heritage, such as local festivals, art galleries, and traditional Hawaiian experiences.

When setting up your Airbnb property, create an inviting and comfortable space that captures the essence of Kaunakakai's charm. Incorporate Hawaiian-inspired decor, comfortable furnishings, and amenities that cater to the needs of travelers. Consider providing local recommendations, guidebooks, or personalized experiences that allow guests to immerse themselves in the local culture and make the most of their stay.

The city's unique location and limited supply of accommodations make it a niche market that requires a hands-on approach to ensure the success of the investment. Overall, Kaunakakai's Airbnb market is an excellent opportunity for investors who are looking for a unique and profitable investment in Hawaii's growing tourism industry.

8. Hilo, HI

On our list of top markets for Airbnb investors in Hawaii is Hilo, HI. This city is located on the eastern side of the Big Island and is known for its lush rainforests, waterfalls, and black sand beaches. Hilo has seen a significant increase in tourism in recent years, making it an attractive market for Airbnb investors. Additionally, Hilo is just a short drive away from Hawaii Volcanoes National Park, which is a popular attraction for visitors to the island.

Investing in an Airbnb property in Hilo can be a lucrative opportunity for investors. The ADR for Airbnb properties in Hilo is $150, and the occupancy rate is 79.8%. This translates to an annual revenue of $26,000 for an average Airbnb property in Hilo. The market size for Airbnb properties in Hilo is also large, with 579 active listings on the platform. The ROI for Airbnb properties in Hilo is 5%, making it a decent investment opportunity.

Investors who are interested in the Hilo market could consider investing in properties that are close to popular attractions and have unique features that will attract guests. Properties with ocean views or those that are located near waterfalls or hiking trails are likely to be in high demand.

To get more bookings, highlight the unique features and attractions that make the city a desirable destination for travelers. Showcase the stunning natural beauty of Hawaii Volcanoes National Park, where guests can explore lava tubes, hike through volcanic landscapes, and witness the power of an active volcano. Emphasize the city's rich cultural heritage, including traditional Hawaiian music, arts, and crafts, as well as local festivals and events.

When setting up your Airbnb property, create an inviting and comfortable space that reflects the charm of Hilo. Incorporate Hawaiian-inspired decor, comfortable furnishings, and amenities that cater to the needs of travelers. Consider offering unique experiences such as guided volcano tours, local cultural activities, or access to private gardens or outdoor spaces. Providing exceptional guest experiences will help you stand out in the market and attract positive reviews, leading to increased occupancy rates.

Effective marketing strategies are essential to attract guests in a competitive market. Leverage online platforms and social media to increase visibility and reach potential guests. Highlight the unique selling points of your property, such as its proximity to attractions, stunning views, or any special features it offers.

With its growing tourism industry and proximity to popular attractions, the city offers the potential for favorable returns. By highlighting the unique features of Hilo, creating inviting Airbnb properties, and implementing effective marketing strategies, you can establish a successful presence in this competitive market and capitalize on the high demand for vacation rentals in Hilo.

Bottom Line

In conclusion, Hawaii offers diverse and lucrative opportunities for Airbnb investors. From the adventure seekers' paradise of Mountain View and Volcano to the luxurious retreats in Hana, each location presents its unique charms and financial prospects. Whether you're looking to cater to eco-tourism in Naalehu, offer intimate stays in Kaunakakai, or tap into the growing tourism in Hilo, the key to successful investment lies in understanding the specific demands of each market and offering high-quality, unique stays that align with these demands.