I often receive questions about how to calculate rental yield from those looking at properties in Kahului. In order, there are three main factors to check: rental levels, holding costs, and loan conditions. The average rent in Kahului ranges from $2,172 (Zumper, May 2026) to $2,675 (RentCafe), with the median in the Kahului-Wailuku area around $2,050.

First, check the loan conditions. Investment property loans require a down payment of 15% to 25%, and approval is possible with a credit score of 620 or higher, but to receive preferential rates, you need a score above 740. Interest rates are also set 0.5 to 0.75 percentage points higher than those for primary residences. Rental income is only recognized as 75% of the expected amount for loan income, so you should prepare the lease agreement or appraisal rental schedule in advance. If you decide on a property first and check the loan conditions later, it can often disrupt your financial planning, so it's better to get pre-approved for the loan first.

Second, consider the rent-to-price ratio. According to the 1% rule, if the monthly rent exceeds 1% of the purchase price, it indicates easier cash flow. While rents in Kahului are high, the sale prices are also relatively high within Maui, making it uncommon to find properties that meet this ratio.

Third, be aware of tenant protection regulations. Hawaii has no rent control, so there are no limits on rent increases, but if you want to raise a month-to-month contract, you need to provide written notice 45 days in advance. The security deposit is limited to one month's rent, and notice of occupancy must be given two days in advance. By checking these three factors in order, you will know what to look for when comparing each property.

• Loan conditions - Down payment of 15% to 25%, credit score of 620 or higher, preferential rates for scores above 740
• Rent compared to purchase price - Initial screening using the 1% rule
• Tenant notice regulations - Written notice 45 days in advance for rent increases

Property taxes in Maui County for the 2026 to 2027 fiscal year are divided into brackets, with long-term rental rates ranging from $2.90 to $8.50 per $1,000 of assessed value. If you have a long-term lease, you can deduct $200,000 from the assessed value, and if combined with the homeowner deduction, you may be able to deduct up to $300,000. However, you must apply by December 31 each year for it to take effect in the next fiscal year. If you miss the application, the general rate will be applied until the following year, which could result in a lower-than-expected rental yield, so it's wise to mark the application schedule on your calendar right after the purchase.

Fourth, it's good to check the cap rate, which is the net operating income divided by the purchase price. Kahului has a steady demand for rentals due to its tourism and commercial facilities, but because sale prices are also high, the cap rate may appear lower compared to other areas in Maui. Just because the rent amount is high doesn't mean the yield is good, so it's advisable not to skip verifying the cap rate.

If you use a management company, fees will take 8% to 12% of the monthly rent. Landlord insurance has broader coverage than standard homeowners insurance, but the premiums are also higher. It's helpful to set aside about 1% of the asset value annually for maintenance as part of a disciplined investment strategy. If you are liquidating other assets and moving to Kahului, it's worth looking into the 1031 exchange to defer capital gains tax.

You cannot judge rental yield based solely on rent. By checking loan conditions, purchase price ratios, tenant regulations, and property tax classifications in order, your assessment becomes much clearer. As you go through each step, you will realize that what initially seemed complicated can ultimately be summarized into a few numbers. This article is not investment or legal advice, and consulting a professional before making any contracts is recommended.