Home Business Rules in Detroit, MI (2026)

In Detroit, MI, home-based businesses are permitted subject to specific rules designed to preserve residential character while allowing residents to run legitimate businesses from their homes. A Home Occupation Permit is required before operating. The Detroit Buildings, Safety Engineering and Environmental Department (BSEED) or Detroit Planning and Development Department (PDD) handles home occupation applications and enforcement. Regulations generally prohibit on-site employees, customer visits, and any external evidence of business activity. Below you will find the current permit requirements, restrictions, prohibited business types, and cottage food law provisions for Detroit.

Permit Requirements

Permit Required: Home Occupation Permit. Fee: $50. Apply through the Detroit Buildings, Safety Engineering and Environmental Department (BSEED) or online at their permit portal. Phone: (313) 224-3158. Permits typically must be renewed annually. Operating without a required home occupation permit can result in fines and a requirement to cease business activity immediately.

Operating Restrictions

Home Business Restrictions in Detroit: 1. Home occupation must be incidental to the residential use 2. No exterior signage advertising the business 3. No customers or clients visiting the premises in R1-R3 zones 4. No employees other than those residing in the dwelling 5. No outside storage of business materials or equipment 6. Business activity must not be visible from the street 7. Maximum 25% of floor area used for business Violations of home occupation rules can result in complaints from neighbors, code enforcement investigations, permit revocation, and daily fines.

• •Home occupation must be incidental to the residential use
• •No exterior signage advertising the business
• •No customers or clients visiting the premises in R1-R3 zones
• •No employees other than those residing in the dwelling
• •No outside storage of business materials or equipment
• •Business activity must not be visible from the street
• •Maximum 25% of floor area used for business

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in Detroit: Auto repair or body shop; Food preparation requiring commercial kitchen (except cottage food); Firearms dealer or gunsmith; Massage parlor or tattoo studio with clients on premises; Child care beyond family exemptions. This list may not be exhaustive — contact the Detroit Planning and Development Department (PDD) to verify whether your specific business type is allowed under home occupation rules.

• ✕Auto repair or body shop
• ✕Food preparation requiring commercial kitchen (except cottage food)
• ✕Firearms dealer or gunsmith
• ✕Massage parlor or tattoo studio with clients on premises
• ✕Child care beyond family exemptions

Cottage Food Law

Frequently Asked Questions