Honolulu Rental Property Investment: 2025 Guide to Condos
Investor Guide
If you’re considering Honolulu rental property investment, condos in Waikiki, Ala Moana, and Kakaʻako offer strong mid-term rental demand, stable yields, and long-term appreciation. This in-depth guide covers why Honolulu remains one of the most attractive markets for investors, which condos perform best, pro-forma examples, and why Waikiki Landmark stands out in 2025.
Why Honolulu Rental Property Investment Is Attractive
Honolulu is consistently ranked as one of the most desirable places to live and visit in the world. For investors, this translates to strong rental demand, limited supply, and resilient property values. Several factors make Honolulu rental property investment compelling in 2025:
- Steady tourism and relocation demand: Travel nurses, military personnel, digital nomads, and relocating families all require longer-term furnished housing.
- Land scarcity: Honolulu has strict zoning and limited developable land, which helps maintain property values.
- Legal 30-day rentals: While nightly short-term rentals face restrictions, many condos permit 30-day minimum rentals, offering investors compliant, stable yield opportunities.
- Appreciation potential: Historic data shows Honolulu condos appreciate steadily, especially in prime neighborhoods like Waikiki, Ala Moana, and Kakaʻako.
Market Trends in 2025
The Honolulu real estate market in 2025 is shaped by three major forces: limited inventory, rising rental demand, and evolving tenant demographics. Median condo prices in Honolulu hover around $525,000, while luxury condos in Waikiki and Ala Moana can exceed $1 million. Despite global economic uncertainty, demand remains high for mid-term rentals due to:
- Remote work flexibility encouraging longer stays in Hawaii.
- Increased military and government assignments creating consistent tenant pools.
- High cost of hotel stays pushing visitors toward furnished 30-day rentals.
These trends suggest that Honolulu rental property investment will continue to deliver attractive yields for investors who choose the right building and management approach.
Expected Yields & Condo Comparisons
| Building | Purchase Range | Monthly Rent (30-day) | Net Yield | Notes |
|---|---|---|---|---|
| Waikiki Landmark | $650k–$900k | $4,000–$4,500 | ~4.5–5.5% | Luxury amenities, efficient utilities, strong owner occupancy |
| Fairway Villa | $300k–$450k | $2,200–$2,800 | ~5.5–7.0% | Affordable entry point with solid monthly demand |
| Royal Kuhio | $400k–$550k | $2,800–$3,500 | ~5.0–6.0% | Central Waikiki, many units include parking |
| Allure Waikiki | $700k–$1.2M | $4,500–$6,000 | ~3.5–4.5% | Modern luxury tower with premium finishes |
| Waipuna | $550k–$750k | $3,200–$4,200 | ~4.5–5.0% | Spacious layouts, landscaped grounds, family appeal |
Yields depend on purchase price, view, renovations, and management. Investors should underwrite conservatively when evaluating Honolulu rental property investment opportunities.
Spotlight: Waikiki Landmark
The Waikiki Landmark remains one of Honolulu’s most iconic towers and a standout for rental property investors. Built originally as a five-star hotel, the building includes design and infrastructure rarely seen in Waikiki condos:
- Prestige & Location: Positioned at the gateway to Waikiki with easy access to Ala Moana and downtown Honolulu.
- Amenities: Some of the best pools in Waikiki, a fitness center, BBQs, and elegant lobbies.
- Utilities: Central boiler and chilled-water AC keep electric bills around ~$100/month (2025).
- Exclusivity: Only 198 units, most owner-occupied, no nightly rentals allowed.
While maintenance fees are higher than budget buildings, the Landmark attracts stable, long-term tenants and offers investors lower vacancy risk.
Pro-Forma Example (2BR Waikiki Landmark)
| Item | Amount | Notes |
|---|---|---|
| Purchase Price | $700,000 | Typical 2BR unit |
| Monthly Rent (30-day) | $4,500 | Furnished, mid-term lease |
| Annual Gross | $54,000 | 12 months potential income |
| Occupancy | 85% | ~10 months average filled |
| NOI | $32,000–$35,000 | After HOA, mgmt, utilities, taxes |
| Net Yield | ~5.0% | Pre-financing/depreciation |
Risks & Considerations
Like any market, Honolulu rental property investment carries risks:
- Regulatory changes: Honolulu has tightened short-term rental rules; always confirm compliance.
- High HOA fees: Luxury condos often have higher monthly dues.
- Special assessments: Older buildings may require significant repairs.
- Liquidity: Honolulu condos can take longer to sell compared to mainland markets.
Compliance Checklist
- Verify zoning & AOAO rules allow 30-day minimum rentals.
- Register for Hawaii GET & TAT taxes, plus County TAT if applicable.
- Show tax IDs on all rental listings (official Honolulu STR guidance).
- Use leases that reflect one exclusive guest per 30-day term.
- Account for vacancy, management, and special assessments in your underwriting.
Strategies for Successful Honolulu Rental Property Investment
Furnish Smartly
Include WFH desks, fast Wi-Fi, and modern finishes to attract professionals.
Target Your Market
Travel nurses, military TDY, and executives provide reliable mid-term tenants.
Dynamic Pricing
Adjust monthly rates for seasonality and length of stay (60–90 day discounts).
Leverage Amenities
Highlight pools, gyms, and parking in listings to justify premium pricing.
Internal Resources
FAQ
Is Honolulu good for rental property investment?
Yes. Limited supply, consistent demand, and appreciation potential make Honolulu attractive for rental property investors.
What is the average rental yield?
Yields range from 4%–7%, depending on building, unit type, and management costs.
Are 30-day rentals legal?
Yes, but only in buildings zoned or permitted for 30-day minimum rentals. Always verify compliance and register for Hawaii taxes.
Disclaimer
This article is for educational purposes only and does not constitute financial, legal, or investment advice. BuyOahuCondos.com makes no warranties about accuracy or suitability. Consult licensed professionals before making investment decisions. All investments carry risk, and past performance does not guarantee future results.
