Bill 41 (Oʻahu Short-Term Rentals)
Bill 41 is the Honolulu ordinance that overhauled short-term rental regulation on Oʻahu. It restricts where transient vacation units (TVUs) and bed-and-breakfast homes may operate and requires registration to do so legally.
The ordinance limits new short-term rentals largely to resort-zoned and certain apartment-district areas, tightens enforcement, and sets a registration regime for legal operation. Grandfathered nonconforming uses have their own renewal path.
Because short-term-rental eligibility is use- and location-dependent, it's a distinct question from whether a parcel can be built on — operating short-term is an owner's election, subject to Bill 41, not a construction gate.
If a short-term-rental income assumption is part of the underwriting, Bill 41 eligibility is a make-or-break question that turns on the parcel's zoning and location — worth confirming before it's baked into a pro forma.
Only in limited areas and with registration, under Bill 41 (Ordinance 22-7). New transient vacation units and B&Bs are largely restricted to resort-zoned and certain apartment districts; operating elsewhere generally isn't permitted.
This is a plain-language reference, not legal advice. KILO is a pre-development screening tool, not a system of record — confirm any determination with the agency of jurisdiction.