By Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Updated November 13, 2026.
Quick answer (updated November 13, 2026): Hilo is the Big Island's county seat and its largest town, on the wet, green east side. October 2026 median prices (Title Guaranty Hawaii market report) show 21 South Hilo house sales at a $570,000 median, 3 condo sales at $325,000 and 8 land sales at $331,000. Before you buy, check the lava zone on Mauna Loa's slopes, the tsunami map near the bay, and the home's condition in a very rainy climate.
Hilo curves around Hilo Bay below Mauna Kea and Mauna Loa, with a historic downtown, a busy harbor, the island's main east-side airport and the county and state offices. Neighborhoods spread uphill from the bay into greener, cooler areas.
It is one of Hawaii's more affordable towns for full-time living. Here is how the market looks and what to check.
Older homes sit close to downtown and the bay; subdivisions climb the hills toward Kaumana and along the Hamakua side; and larger lots spread out on the edges of town. Condos are few, and Bayshore Towers was among the island's condo projects with a sale in October.
These are October 2026 median prices from the Title Guaranty Hawaii market report for Hawaii Island (effective November 2, 2026). Title Guaranty is a Hawaii title and escrow company, and its free monthly report compiles the island's MLS sales statistics by tax district. One month is a small sample, so treat a district median as a starting point and look at actual comparable sales.
Hilo is very rainy, which keeps it green and means roofs, gutters, termite and moisture damage deserve careful inspection. Many homes are older wood construction on post-and-pier foundations.
Hilo's bayfront was devastated by tsunamis in 1946 and 1960, and much of the low land near the bay is now parks. Check the tsunami evacuation map and the Flood Hazard Assessment Tool for any property near the water or streams.
The U.S. Geological Survey divides Hawaii Island into lava-flow hazard zones from 1 (highest) to 9 (lowest). Zone 1 covers the summits and rift zones of Kilauea and Mauna Loa; Zone 2 is the land next to and downslope of those rift zones. The zones describe long-term probability, not a forecast, and USGS is updating the map, which still dates from 1992. Zone matters for insurance and financing. When private insurers decline a home, the Hawaii Property Insurance Association is the market of last resort: it requires at least two declinations, offers dwelling limits from $50,000 to $450,000, and generally costs more for less coverage. Ask your lender and an insurance agent about a specific address before you are in contract.
Hilo sits on the lower slopes of Mauna Loa. Look up the exact parcel's zone; it affects insurance and some loans.
Hawaii County's 2018 short-term vacation rental law (Ordinance 2018-114) allows new unhosted rentals only in certain districts: the V, CG and CV zones, residential and commercial zones inside the General Plan's resort areas, and RM-zoned condominiums. Outside those areas, only rentals that were operating before April 1, 2019 and hold an annually renewed nonconforming use certificate can continue. Since September 1, 2026 the county also requires every transient vacation rental, hosted or not, to register through its online portal under Ordinance 25-50, with a grace period through the end of 2026. Condo association rules can be stricter than the county's. Most Hilo neighborhoods are residential, where new unhosted rentals are not allowed. Many Hilo investors rent long term and use the county's long-term rental class.
Nightly rental income is taxed separately from property tax: the state transient accommodations tax is 11% as of January 1, 2026, each county adds a 3% county TAT, and general excise tax is 4.5% in both Maui County and Hawaii County, so plan on about 18.5% of gross rent before income tax.
Most Hawaii Island homes and lots sell fee simple. Leasehold still appears in some Kona-side condos and older subdivisions, and Department of Hawaiian Home Lands homestead leases have their own eligibility rules. On rural lots, I look closely at legal access, road maintenance agreements on private roads, and whether utilities actually reach the parcel.
From Hilo International Airport, most of Hilo is 5 to 10 minutes away, Keaau 15 to 20 and Volcano 40 to 50. Kona is about 1.5 to 2 hours over Saddle Road. These are our own estimates for light traffic, not official figures.
Hawaii County sets rates by class each May. A full-time owner who files for the home exemption is taxed in the Homeowner class, and the exemption also lowers the taxable value. Second homes and vacation rentals are generally taxed in the Residential class, which now has three tiers.
| Hawaii County class (FY July 1, 2026 - June 30, 2027) | Rate per $1,000 of net taxable value |
|---|---|
| Homeowner | $5.75 |
| Residential (non-homeowner) | $11.10 below $2M; $14.50 from $2M to $4M; $17.00 above $4M |
| Long-term rental | $7.75 |
| Apartment | $11.70 |
| Hotel and resort / Conservation | $11.55 |
| Agricultural or native forests | $9.35 |
| Affordable rental housing | $5.75 |
Illustration only: a home with $570,000 of taxable value would be about $3,278 a year in the Homeowner class before the home exemption, and about $6,327 a year in the Residential class. The exemption amount depends on the owner, so I have the county's numbers checked for the specific property.
The Title Guaranty Hawaii market report shows 21 South Hilo single-family sales in October 2026 at a median of $570,000.
A few. South Hilo had 3 condo sales in October 2026 at a $325,000 median.
Yes, Hilo is very rainy. Inspect roofs, gutters, drainage and moisture and termite damage carefully.
The low areas near Hilo Bay are. Hilo was hit by major tsunamis in 1946 and 1960. Check the tsunami evacuation map for any property near the coast.
Look up the parcel on the U.S. Geological Survey lava-flow hazard zone map (zones 1 to 9, with Zone 1 the highest hazard). The map dates from 1992 and is being updated, and your lender and insurer may have their own rules for Zones 1 and 2.
Using Hawaii County's July 2026 to June 2027 rates, $570,000 of taxable value would be about $3,278 a year in the Homeowner class ($5.75 per $1,000) before the home exemption, or about $6,327 a year in the Residential class used for most second homes and rentals.
Our estimate is about 1.5 to 2 hours over the Daniel K. Inouye Highway (Saddle Road).
Yes. My team is based on Oahu, and for Hawaii Island purchases we help buyers through eXp Realty's statewide network, including referrals to agents who work Hilo every day. Call or text (808) 201-3577.
Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Phone (808) 201-3577. The Kawaguchi Group is based on Oahu; for neighbor-island purchases we work with buyers through eXp Realty's statewide network, including referrals to agents who work those areas every day. This page is general information, not legal, tax, insurance or financial advice. Market statistics are deemed reliable but not guaranteed and can be revised. Drive times are our own estimates for light traffic and will vary. Photos are of the general area and are not listings.