Open data · CC-BY 4.0

Maui, HI cost segregation benchmarks (2026)

Engine-derived ROI data from 5 representative Maui-area properties. Methodology transparent below. CC-BY 4.0, journalists, CPAs, and researchers may cite this dataset with attribution.

Three key findings for Maui

  1. Median engine-estimated Year-1 federal savings: $62,694 (interquartile range $51,846–$81,951, full range $46,470–$102,062) across 5 representative fixtures with purchase prices $925,000–$1,850,000. Assumptions: 100% bonus depreciation under OBBBA; 37% federal top marginal bracket. Individual property results vary substantially based on specific condition, renovation history, and rental treatment.
  2. Median reclassification ratio: 26.6% (interquartile range 26.4%–26.9%, full range 17.2%–27.4%). Furnished STRs sit higher in the range due to FF&E density; long-term rentals sit lower; renovation-cost-pool-driven properties span both. Your specific property may fall outside this range either direction depending on actual condition and renovation history.
  3. Median land allocation: 44.5% (interquartile range 43.5%–45.0%, full range 43.1%–45.0%). Resort-tier and high-cost-of-land neighborhoods (where the engine's premium land floor often applies) compress depreciable basis as a percentage of purchase price, but produce larger absolute dollar deductions. See the methodology note below the neighborhood table for the premium-floor mechanism.

Important framing: These are engine outputs for representative fixture scenarios, not predictions about any specific property. The cost segregation engine takes real property data (address, year built, square footage, renovation history, assessor records) and produces a study tailored to your actual property. The aggregate numbers shown here describe the Maui market's general profile; your specific results will reflect your specific property.

Per-fixture results

Each fixture was run through the Cost Seg Smart engine, the same engine that produces real customer studies. Numbers below are reproducible from cities/maui.json via scripts/run_city_stats.py.

Property Neighborhood Price Basis Land % 5-yr 15-yr Reclass % Y1 fed savings @ 37%
Kaanapali Condo (regulatory-risk flagged)
CONDO · STR · Built 2002
West Maui (Kaanapali / Lahaina area) $1,485,000 $823,432 44.5% $163,500 $53,324 26.9% $81,951
Wailea Resort Condo
CONDO · STR · Built 2008
South Maui (Wailea / Kihei) $1,850,000 $1,045,250 43.5% $203,228 $66,969 26.4% $102,062
Upcountry Kula SFR
SFR · STR · Built 1998
Upcountry Maui (Kula / Makawao) $1,125,000 $618,750 45.0% $124,500 $41,406 27.4% $62,694
Hana Rural Vacation Rental
SFR · STR · Built 2010
Hana (East Maui rural) $925,000 $526,602 43.1% $103,298 $33,579 26.6% $51,846
Paia North Shore SFR LTR
SFR · Built 2005
North Shore (Paia / Haiku) $1,325,000 $728,750 45.0% $76,167 $49,429 17.2% $46,470

Reclassification by property type

Engine property typeFixturesMedian reclass %MinMax
CONDO 2 26.7% 26.4% 26.9%
SFR 3 26.6% 17.2% 27.4%

"STR" denotes residential property operating as a short-term rental, the engine applies an FF&E density uplift not captured in the LTR (long-term rental) treatment.

Typical land allocation by neighborhood

NeighborhoodTypical valueTypical land allocationProfile note
West Maui (Kaanapali / Lahaina area) $1,850,000 ~38% Highest STR concentration historically. CRITICAL: post-2023 fires, this area is subject to active phase-out plans affecting thousands of properties. Highest regulatory risk in the network.
South Maui (Wailea / Kihei) $1,485,000 ~34% Resort condo and SFR market. Subject to county STR ordinance and pending phase-out review. High land allocation due to resort-location scarcity premium.
Upcountry Maui (Kula / Makawao) $1,125,000 ~26% Higher-elevation residential away from beach corridors. Lower land allocation. Less STR-dependent, more residential-resident orientation, lower phase-out risk.
Hana (East Maui rural) $925,000 ~22% Remote east-Maui rural sub-market. Lower land allocation. Niche vacation-rental product with eco-tourism focus.
North Shore (Paia / Haiku) $1,325,000 ~30% Surfing-and-windsurfing-anchored sub-market. Mix of vacation rental and primary residence. Mid-tier land allocation. Lighter STR-phase-out exposure than West and South Maui.
Why per-fixture engine output may differ from the typical land allocation:

The "typical land allocation" column reflects baseline patterns for each sub-market based on county assessor records and statistical modeling. For specific properties where reconstruction cost (RSMeans 2024 component build-up adjusted for time and geography) exceeds 2.0× the implied depreciable basis after subtracting the baseline land, the engine applies a premium land floor (~50%) to keep the study within audit-defensible territory. This typically affects ultra-premium resort inventory (ski-in/ski-out, beachfront, view-premium properties), where land scarcity premium dominates the purchase price. The per-fixture table above shows the actual land_source used by the engine for each fixture, values of statistical_premium_floor indicate the premium-floor mechanism was applied.

The takeaway: typical neighborhood allocations describe the market baseline. Individual property results depend on specific reconstruction-cost-vs-purchase-price ratios, and ultra-premium product may show higher land allocation in the engine output than the neighborhood typical.

Hawaii tax context

Hawaii state position on §168(k) bonus depreciation:

Hawaii partially decouples from federal §168(k), HI requires addbacks for federal bonus depreciation with recovery on the regular MACRS schedule for state purposes. Combined with Hawaii's top 11% state rate, the state-side timing mismatch on cost-seg acceleration is meaningful. The federal §168(k) acceleration is unaffected; the HI-side reconciliation defers state benefit over the regular MACRS schedule.

Decoupling: Hawaii has periodically modified bonus depreciation conformity. Verify current-year treatment with your CPA.

State income tax structure: Progressive 12-bracket schedule, among the highest state-level individual rates in the United States

Verify with your CPA. State tax conformity for federal §168(k) is adjusted frequently. Framing reflects our understanding as of May 2026, verify current-year treatment with a qualified tax professional.

Methodology

Every figure on this page is reproducible. The pipeline:

  1. Fixture definition. 5 Maui-area properties defined in cities/maui.json under the engine_fixtures array, each with address, property type, purchase price, year built, square footage, and STR/LTR flag.
  2. Engine run. The script scripts/run_city_stats.py instantiates a PropertyInput for each fixture and calls engine.run_study(), the same path that produces a real customer study.
  3. Base costs. RSMeans 2024 construction-cost data by component category, applied as base-rate per square foot.
  4. Time index. BLS Producer Price Index (Construction Materials series WPUFD49207) adjusts RSMeans 2024 dollars to acquisition-date dollars.
  5. Geographic factor. Six-tier resolver: pinned metros → calibrated → manual → state → region → national default.
  6. Land allocation. County assessor records when reliability gate passes; statistical fallback (metro → state → national medians) otherwise. Premium floor applies when reconciliation factor (rf_raw) exceeds 2.0.
  7. MACRS classification. IRS Pub. 946 + Rev. Proc. 87-56 asset class lives, 5-year (personal property), 7-year (office equipment), 15-year (land improvements), 27.5-year (residential structure), 39-year (commercial structure).
  8. Bonus depreciation. 100%, the One Big Beautiful Bill Act (OBBBA, signed July 2025) permanently restored 100% bonus for property placed in service in 2025 and later.
  9. Federal tax savings illustration. Computed at the 37% top marginal bracket. Actual savings vary by taxpayer; consult your CPA.

For full methodology details including QC validation, reconciliation logic, and audit-defense documentation, see costsegsmart.com/methodology.

Citation

This dataset is licensed under the Creative Commons Attribution 4.0 International License. You may republish, remix, or extend this data for any purpose with attribution. Suggested citation format:

Cost Seg Smart Research Team. (2026). "Maui, HI Cost Segregation Benchmarks 2026." Cost Seg Smart. 5 representative fixtures.
Retrieved from https://mauicostseg.com/data/maui-cost-seg-stats/

For interview requests, additional data slices, or related questions: [email protected].

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