Kapaa, HI Airbnb Market Data, Statistics, and Occupancy Rates

Kapaa Short-Term Rental Market Overview

Kapaa on Kauai's east shore delivers a compelling blend of resort-island demand and above-average occupancy, with active listings averaging 77% occupancy — ten points above the Hawaii state average. With an average annual revenue of $78,470 across 430 active listings and an ADR of $356, the market rewards operators who cater to vacationers drawn to Kauai's natural beauty. Property values averaging $1,32M mean the revenue-to-price ratio requires careful underwriting, but steady demand and strong occupancy help offset the higher entry cost.

Key Market Statistics

According to Rabbu market data, the Kapaa short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Kapaa

Investors are drawn to Kapaa for its resilient island tourism demand, occupancy rates well above the state average, and a vacation rental market that benefits from Kauai's status as one of Hawaii's most sought-after destinations.

Expert Market Assessment

"Kapaa represents an attractive opportunity for STR investors willing to navigate Hawaii's regulatory landscape and higher property costs. The market's 77% average occupancy and $273 RevPAN demonstrate healthy, sustained demand that outpaces much of the state. Seasonality is present but manageable — revenue peaks in the January-through-March window and softens through September, yet never drops dramatically, reflecting Kauai's appeal as a year-round destination. The rapid growth in active listings (122% year-over-year) warrants monitoring, as increased supply could gradually compress margins if demand doesn't keep pace."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Kapaa

Average revenue by month in Kapaa

Kapaa's revenue peaks in March at $7,982 and dips to its lowest in September at $5,192 — a spread of roughly $2,800 that reflects moderate seasonality driven by winter vacation travel to Kauai. The first quarter consistently outperforms the rest of the year, while July provides a secondary bump at $6,972 during summer travel season.

Active Airbnb listings by property size in Kapaa

One-bedroom listings dominate the Kapaa market with 206 of the 430 active properties, followed by two-bedrooms at 138 and studios at 76. Three-bedroom units are scarce with only 8 listings, which may signal an opportunity for investors willing to offer larger accommodations to families and groups.

Average daily rate (ADR) by property size in Kapaa

ADR scales meaningfully with size in Kapaa, jumping from $288 for one-bedrooms to $458 for two-bedrooms and $567 for three-bedrooms. Interestingly, studios command $320 — more than one-bedrooms — suggesting that well-positioned studio units in premium locations or with standout amenities can punch above their weight on nightly pricing.

Average RevPAN by property size in Kapaa

Three-bedroom properties deliver the highest RevPAN at $433, nearly double the $225 earned by one-bedrooms, making larger units the clear revenue-efficiency leaders. Two-bedrooms also perform well at $345 RevPAN, offering a compelling middle ground for investors who want strong per-night returns without the higher acquisition cost of a three-bedroom property.

Average occupancy rates by property size in Kapaa

Occupancy is remarkably consistent across property sizes in Kapaa, ranging from 74% for studios to 78% for one-bedrooms, with two- and three-bedrooms at 75% and 76% respectively. This uniformity suggests that demand is broadly distributed and that investors in any property size can expect reliable booking volume.

Average monthly revenue by property size in Kapaa

Three-bedroom units lead monthly revenue at $12,372, more than double what studios ($5,078) and one-bedrooms ($5,355) generate. Two-bedrooms hit a strong sweet spot at $9,017 per month, making them an appealing option for investors seeking higher revenue without the extremely limited supply and higher costs of three-bedroom properties.

Average annual revenue by property size in Kapaa

Annual revenue ranges from $60,937 for studios to $148,475 for three-bedroom properties, illustrating how larger units can significantly amplify returns in Kapaa's premium vacation market. Two-bedrooms at $108,209 per year offer the best balance of supply availability and revenue potential, especially given the scarcity of three-bedroom inventory.

Most common amenities for Airbnb listings in Kapaa

Kitchens (94%) and parking (93%) are near-universal in Kapaa listings, reflecting guest expectations for self-catering vacation stays and the practical reality of getting around Kauai. Outdoor living features like BBQ grills (86%), pools (84%), and hot tubs (60%) are also highly prevalent, signaling that guests prioritize resort-style outdoor amenities — listings without these features may struggle to compete.

Understanding Kapaa's ROI Score: 71/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Kapaa's ROI Score of 71 out of 100 places it in the 'Attractive Opportunity' band, reflecting a market where above-average occupancy stability and balanced supply-demand dynamics help compensate for an average revenue-to-price ratio driven by Hawaii's premium property costs. The occupancy stability factor scores above average — consistent with the market's 77% occupancy that outpaces the state — while market growth and supply/demand balance remain at average levels, suggesting steady but not explosive conditions. Investors should pair these metrics with thorough research into Kauai County's permit landscape, as regulatory access is a critical variable that this score does not directly measure.

Short-Term Rental Regulations in Kapaa

Understanding local STR regulations is essential before investing in Kapaa. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Kapaa, Hawaii are generally required to obtain a nonconforming use certificate or transient vacation rental permit through Kauai County, and properties must also hold a state General Excise Tax license. Investors should verify current permit availability and requirements directly with Kauai County's Planning Department, as the county has historically capped the number of allowable vacation rental permits.

Key Restrictions

Common restrictions in the area include limits on the total number of STR permits issued, occupancy caps based on property size, noise ordinances, parking requirements, and potential HOA restrictions that may prohibit or limit short-term rentals in certain developments. Investors should also be aware that zoning designations play a significant role in determining where vacation rentals are permitted on Kauai.

Tax Obligations

Hawaii requires short-term rental operators to collect and remit both the General Excise Tax (GET) and the Transient Accommodations Tax (TAT), with Kauai County also imposing an additional county surcharge. Many booking platforms handle a portion of this collection automatically, but hosts should confirm their obligations with a tax professional familiar with Hawaii's STR tax structure.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Kapaa can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Kapaa's short-term rental market is expected to maintain its above-average occupancy stability, likely hovering in the 74–80% range across property sizes. Seasonal patterns suggest winter and early spring will continue to command premium revenues — March alone averaged $7,982 — while late summer and fall may see softer months around the $5,200–$6,400 range. ADR growth of 1–3% is plausible given Kauai's continued popularity as a premium leisure destination, though the 122% year-over-year increase in active listings signals that new supply could moderate gains if it outpaces demand growth."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Kapaa, HI

What is the average Airbnb occupancy rate in Kapaa?

The average Airbnb occupancy rate in Kapaa is currently 77%, which is notably higher than the Hawaii state average of 67%. Occupancy remains fairly consistent across property sizes, ranging from 74% for studios to 78% for one-bedroom units, indicating broad and steady demand across listing types.

How much do Airbnb hosts make in Kapaa?

Airbnb hosts in Kapaa earn an average of $6,539 per month and approximately $78,470 per year, based on the trailing 12-month average across active listings. Revenue varies significantly by property size — studios average around $60,937 annually while three-bedroom properties can generate up to $148,475 per year. Peak earning months are January through March, with March averaging $7,982.

Is Kapaa a good market for Airbnb investment?

Kapaa scores a 71 out of 100 on Rabbu's ROI Score, classified as an 'Attractive Opportunity.' The market benefits from above-average occupancy stability and consistent demand driven by Kauai's appeal as a premier vacation destination. While average home values of $1,321,709 create a higher entry barrier, the strong annual revenue potential — especially for larger properties — and resilient occupancy help support the investment thesis. Investors should pair this data with thorough regulatory research, as Kauai County maintains specific permit requirements for vacation rentals.

What is the average daily rate (ADR) for Airbnb in Kapaa?

The average daily rate for Airbnb listings in Kapaa is $356, which is below the Hawaii state average of $709. ADR scales with property size, starting at $320 for studios and climbing to $567 for three-bedroom units. The lower ADR relative to the state average, combined with significantly higher occupancy, reflects a market where competitive pricing and consistent bookings drive revenue rather than premium nightly rates alone.

Are short-term rentals legal in Kapaa?

Short-term rentals operate in Kapaa under Kauai County's regulatory framework, which generally requires operators to hold appropriate permits such as a nonconforming use certificate or transient vacation rental permit. The county has historically limited the number of STR permits available, so prospective investors should contact the Kauai County Planning Department to confirm current permit availability, zoning requirements, and any applicable restrictions before purchasing a property.

When is peak season for Airbnb in Kapaa?

Peak season for Airbnb in Kapaa runs from January through March, with March being the highest-earning month at an average revenue of $7,982. January ($7,622) and February ($7,052) also perform well above the annual average. The softest months are September ($5,192) and October ($5,696), reflecting a natural dip after the summer travel season before the winter high season ramps back up.

How many Airbnbs are there in Kapaa?

As of April 2026, there are 430 active Airbnb listings in Kapaa. The market has seen significant growth, with a 122% year-over-year increase in active listings. One-bedroom units make up the largest share of supply at 206 listings, followed by two-bedrooms (138), studios (76), and three-bedrooms (8).

How is Airbnb revenue calculated in Kapaa?

The annual and monthly revenue figures for Kapaa are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll up the results to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently rather than to forecasts, while naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts, occupancy rates, and daily rates for the Kapaa market
• Historical revenue and yield metrics based on trailing 12-month booking performance of comparable listings
• Property size breakdowns for supply, pricing, occupancy, and revenue across studio through three-bedroom configurations
• Amenity prevalence data showing the most common features across active listings
• Home value data sourced from the Zillow Home Value Index (ZHVI) for investment cost context

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages as of April 2026 and may not capture recent market shifts. Local regulations, permit availability, and tax obligations can change; investors should verify current requirements with Kauai County and Hawaii state authorities before making investment decisions.