What Is a Nonconforming Use Certificate (NUC)?

A Nonconforming Use Certificate (NUC) is a legal permit that allows certain properties on Oahu to operate as short-term vacation rentals even though they are located outside of resort-zoned areas. These certificates were issued to properties that were already legally operating as vacation rentals before the City and County of Honolulu changed its zoning laws.

This is the third post in our Oahu Short-Term Rental Guide series. For an overview of where STRs are legally allowed, see our zoning guide.

The History of NUCs on Oahu

NUCs exist because of a key date in Honolulu’s zoning history: October 22, 1986. On this date, the City enacted zoning changes that restricted short-term rentals in most residential areas. Properties that were already operating as vacation rentals before this date were allowed to continue under a “grandfathered” status by obtaining a NUC.

The City stopped issuing new NUCs in September 1990. Since then, no new certificates have been granted. This makes existing NUCs extremely valuable—they are a finite, non-renewable resource in Oahu’s real estate market.

How Many NUCs Exist on Oahu?

As of the most recent data, there are approximately 793 active NUC properties on Oahu. Of these, about 759 are issued for Transient Vacation Units (TVUs), with the remainder covering Bed and Breakfast operations.

The majority of NUC properties are concentrated in Waikiki, scattered across about a dozen residential condo buildings. A smaller number of NUCs exist outside of Waikiki in other parts of the island.

NUC Renewal Requirements

Holding a NUC is not a one-time approval. Owners must actively maintain their certificate through an annual renewal process. Here are the key requirements:

  • Renewal window: September 1 through October 15 of every year
  • Renewal fee: $500 annually
  • Proof of tax compliance: You must show that a valid State of Hawaii General Excise Tax (GET) license and Transient Accommodations Tax (TAT) license were in effect during the prior calendar year
  • Minimum occupancy requirement: You must demonstrate at least 35 days of transient occupancy (stays under 30 days each) during the prior calendar year
  • Occupancy records: An occupancy record must be submitted with the renewal application

Missing the October 15 deadline results in automatic loss of the NUC. There is no grace period and no way to get it back once it expires.

Are NUCs Transferable?

Yes. A NUC can be transferred to a new owner when a property is sold. According to the City’s ordinance, a NUC that has been issued and renewed may be renewed by a new owner, operator, or proprietor of the property—as long as the new owner renews the NUC prior to its expiration.

This is critical for buyers. If you are purchasing a property with a NUC, you must ensure that:

  • The NUC is current and has been properly renewed
  • The transfer timing does not cause a lapse in renewal
  • All tax licenses and occupancy requirements have been met by the seller
  • The renewal is completed in your name before the October 15 deadline

What Happens If a NUC Expires?

Once a NUC expires—whether due to a missed renewal deadline, failure to meet the 35-day occupancy requirement, or lapsed tax licenses—it is permanently lost. The City does not reissue expired NUCs, and there is no appeals process to reinstate one.

This means the property loses its legal right to operate as a short-term rental outside of resort zones. For property owners and investors, this can represent a significant loss in property value and income potential.

Buying a Property with a NUC

Properties with active NUCs are highly sought after on Oahu because they offer one of the few legal paths to short-term rental income outside of resort zones. When evaluating a NUC property for purchase, consider:

  • Verify the NUC status: Confirm with the Department of Planning and Permitting (DPP) that the NUC is active and current
  • Review renewal history: Check that the seller has consistently renewed on time and met all requirements
  • Understand the financials: Factor in GET, TAT, and OTAT taxes, plus the higher STR property tax rates
  • Check HOA/AOAO rules: Some condo associations have their own restrictions on short-term rentals that may override NUC permissions
  • Plan the transfer carefully: Work with your real estate agent and attorney to ensure the NUC transfer is seamless during the closing process

For more on the tax implications of owning an STR, see our upcoming guide on every tax you pay as an Oahu STR owner.

Where Are NUC Properties Located?

Most NUC properties on Oahu are in Waikiki, in residential condo buildings such as:

  • Waikiki Sunset
  • Waikiki Banyan
  • Hawaiian Monarch
  • Imperial Hawaii Resort
  • Royal Kuhio

A smaller number of NUC properties are located in other areas of Oahu, including some in Kaneohe, Kailua, and the North Shore. These are particularly rare and can command premium prices due to their scarcity.

NUCs vs. Resort-Zoned STRs

It is important to understand the difference between a NUC property and a resort-zoned STR:

  • Resort-zoned properties have a permanent right to operate STRs based on their zoning designation. This right does not expire or require annual renewal.
  • NUC properties have a conditional right that must be actively maintained through annual renewal, tax compliance, and minimum occupancy requirements.

Both types require registration with the DPP, payment of applicable taxes, and compliance with all operating rules. For a full breakdown of where STRs are legal on Oahu, see our zoning guide.

Continue the Oahu STR Guide Series

This post is part of our comprehensive series on short-term rentals on Oahu. Explore the full series:

  • Short-Term Rentals on Oahu in 2026: Overview
  • Where You Can Legally Operate an STR on Oahu – Zoning Explained
  • NUCs on Oahu: What Buyers and Owners Must Know (You are here)
  • Every Tax You Pay as an Oahu STR Owner (GET, TAT, OTAT)
  • Oahu STR Property Tax Rates for 2025–2026
  • Is an Oahu STR Actually Profitable? Financial Modeling
  • How to Register Your STR Step by Step
  • STR Insurance and Liability
  • Operating Rules: Noise, Parking, Advertising
  • Enforcement, Fines, and How the City Catches Illegal Rentals
  • Condo STRs: HOA Rules and AOAO Restrictions
  • Mid-Term Rentals (30–89 Days): The Alternative Strategy
  • How to Buy an STR Property on Oahu
  • Selling a Property with an STR Permit or NUC
  • The Future of STRs on Oahu

Questions About NUC Properties on Oahu?

Whether you are looking to buy a property with a NUC, sell one, or just understand how they work, our team can help. We work with buyers and sellers across Oahu every day and have deep experience navigating the STR landscape.

Contact Kristy and Austin to start the conversation, or visit our home buying page to learn more about purchasing property on Oahu. You can also explore listings in our featured communities including Ho’opili, Kapolei, Waikiki, and Ko Olina.