Kauai

As of May 2026, Lihue, Kapaa, Princeville, Poipu have 5,109 active Airbnb and VRBO listings. This represents a 4% decrease from the previous year.

The average Airbnb or VRBO in Kauai generates $92K per year. High-performing properties earn $182K/year, while low-performing properties earn $46K/year. This massive variance suggests that market success is heavily bifurcated, as revenue concentration at the top significantly outpaces the broader average in a contracting revenue environment.

Average home prices in Kauai vary by property size: 1-bedroom properties cost approximately $687K, 2-bedroom homes average $1.0M, 3-bedroom properties are around $951K, and 4+ bedroom homes average $1.2M. These prices reflect median home values across the Lihue, Kapaa, Princeville, Poipu area.

Airbnb and VRBO can be profitable in Kauai, with an average gross yield of 8% across all properties. High-performing properties achieve yields up to 16%, which is considered top for short-term rental investment. The double-digit gap between average and high yields highlights how specific asset performance can insulate owners from general revenue declines.

The average occupancy rate for Airbnbs and VRBOs in Kauai is 49%. This occupancy level, combined with an average nightly rate of $499, results in a RevPAR (revenue per available room) of $165 per day.

4+ bedroom properties demonstrate the strongest performance in Kauai, with an average gross yield of 11% and annual revenue of $162K. These properties balance purchase price ($1.2M), operating costs, and rental demand most effectively in the Kauai market.

Short-term rental regulations vary by jurisdiction in the Kauai area. Lihue: Strict. Kauai County nonconforming use certificate required, new permits banned since 2008. Active enforcement with fines and inspections. Kapaa: Strict. Same county rules—no new permits, existing only. Limited grandfathered units. Enforcement active, unlicensed rentals face penalties. Princeville: Moderate. Resort zoning allows some STRs with permits. County enforcement present but less aggressive than residential areas. Poipu: Moderate. Resort area with more permitted units. County registration required. Enforcement exists but tourism focus means less scrutiny than elsewhere. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Kauai Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 4% year-over-year, while RevPAR has decreased 16%. This indicates balanced supply-demand dynamics. Despite a stable supply footprint, the sharp drop in RevPAR suggests that current demand is struggling to sustain previous pricing levels.

Launch around December, 2-3 months before peak winter season (March peaks). This pre-peak timing lets you build reviews when competition is 4% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (November-September) when gaining traction is harder.

The most common amenities in Kauai listings include: Kitchen (92%), Washing Machine (80%), Air Conditioning (71%), Balcony (69%), Pool (67%). Amenities that boost revenue the most include Air Conditioning, Washing Machine, Gym, with Air Conditioning properties earning approximately 29% more ($126K/year vs $97K/year).

Monthly estimated revenue per listing in Kauai over the last 12 months: May: $5K, June: $5K, July: $5K, August: $5K, September: $4K, October: $4K, November: $4K, December: $5K, January: $5K, February: $6K, March: $8K, April: $7K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Kauai is $499, up 6% year-over-year. By property size: 1-bedroom properties average $355/night, 2-bedroom properties average $513/night, 3-bedroom properties average $684/night, 4+ bedroom properties average $1K/night. Rates peak in March and are lowest in May.

Guests in Kauai book an average of 51 days in advance, down 22% from last year. By property size: 1-bedroom: 49 days, 2-bedroom: 52 days, 3-bedroom: 58 days, 4+ bedroom: 65 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Kauai Airbnb and VRBO market has seen the following changes: supply declined 4%, revenue per listing decreased 16%, occupancy fell 1%, average nightly rates increased 6%, and lead time decreased 22%. These shifting metrics illustrate a market responding to lower booking visibility by tightening availability while attempting to maintain price floors.

In Kauai, Friday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Sunday.