South Kona Real Estate: Captain Cook, Kealakekua and Honaunau (2026)

By Tony Kawaguchi, REALTOR (RS-66616), The Kawaguchi Group, eXp Realty (RB-21841). Selling in Hawaii since 2005. Updated November 13, 2026.

South of Kailua-Kona, the Mamalahoa Highway runs along the mountain through small towns and coffee farms, with views down to the ocean and Kealakekua Bay. Upslope it is greener and cooler; down near the coast it is dry and hot.

Buyers come for land, views and a slower pace. Here is what to check.

Homes, farms and land

Most sales are single-family homes, many on an acre or more, and agricultural parcels, some with working coffee or fruit orchards. There are few condos. Agricultural zoning limits dwellings and requires farm use, and some farms carry agricultural dedication for property tax. Ask what the county has permitted on the property, and whether there is an ohana unit.

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.

Lava zones and hazards

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.

South Kona sits on Mauna Loa's west flank. In 1950, flows from Mauna Loa's Southwest Rift Zone reached the ocean south of here, one of them in about 17 hours according to the USGS. Check the zone for the exact parcel.

Water, roads and wastewater

Some properties are on county water; others rely on catchment tanks. Many lots are on steep private roads, so access agreements and road maintenance matter. Many rural homes on both islands still use cesspools. State law requires every cesspool in Hawaii to be upgraded, converted or connected to sewer by 2050, so a buyer should know what system a property has and what replacing it would involve.

Vacation rental rules

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 South Kona neighborhoods are residential or agricultural, where new unhosted rentals are not allowed unless the property already holds a nonconforming use certificate.

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.

Land tenure

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.

Getting around

From Kona International Airport, Captain Cook is about 35 to 50 minutes, depending on Kona traffic. Kailua-Kona is 20 to 30 minutes north. These are our own estimates for light traffic, not official figures.

Property taxes

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.

Illustration only: a home with $800,000 of taxable value would be about $4,600 a year in the Homeowner class before the home exemption, and about $8,880 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.

Land in qualified agricultural use may be taxed in the agricultural class at $9.35 per $1,000, under the county's dedication rules.

Keep reading

• Kailua-Kona
• Waikoloa
• Kohala Coast
• Waimea
• Hilo
• Puna
• Volcano Village
• Kau
• Big Island real estate overview
• Big Island market report
• Which Hawaiian island should I live on?
• Cost of living in Hawaii

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.