We recommend to stay in the area of Princeville/Hanalei. There are other areas such as Poipu but be aware that is about an hour drive from Princeville. For accommodations we suggest to either look at Airbnb, condo or a hotel. Their are lots of options throughout the island.
YES! Highly recommend renting a car to get around the island. If you are staying in Princeville/Hanalei its about an hour drive to get there from the airport. Also with the shortage of rental cars getting to the island we definitely recommend hopping on getting a vehicle reserved ASAP!