Home Business Rules in Portland, OR (2026)

In Portland, OR, 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 Portland Bureau of Development Services (BDS) or Portland Bureau of Planning and Sustainability (BPS) 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 Portland.

Permit Requirements

Permit Required: Home Occupation Permit. Fee: $80. Apply through the Portland Bureau of Development Services (BDS) or online at their permit portal. Phone: (503) 823-7300. 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 Portland: 1. Home occupation must be clearly incidental and subordinate to residential use 2. No customers, clients, or students may visit the home more than 4 times per week per business 3. No more than 2 non-resident employees may work at the premises 4. No external evidence of home occupation from the public right-of-way 5. No storage of materials or equipment in the required yards 6. Maximum 25% of gross floor area devoted to home occupation 7. No mechanical equipment that creates noise, vibration, odors, or glare detectable off-site 8. No commercial vehicles (over 10,000 lb GVW) stored at premises Violations of home occupation rules can result in complaints from neighbors, code enforcement investigations, permit revocation, and daily fines.

• •Home occupation must be clearly incidental and subordinate to residential use
• •No customers, clients, or students may visit the home more than 4 times per week per business
• •No more than 2 non-resident employees may work at the premises
• •No external evidence of home occupation from the public right-of-way
• •No storage of materials or equipment in the required yards
• •Maximum 25% of gross floor area devoted to home occupation
• •No mechanical equipment that creates noise, vibration, odors, or glare detectable off-site
• •No commercial vehicles (over 10,000 lb GVW) stored at premises

Prohibited Business Types

The following business types are specifically prohibited from operating as home businesses in Portland: Auto repair, painting, or body work; Retail sales with on-site inventory display to customers; Food preparation for commercial sale (requires separate Cottage Food registration); Medical, dental, or veterinary offices with on-site patient visits (beyond home consultation); Adult entertainment business; Firearms dealer requiring on-site customer visits; Welding, metalwork, or woodworking with commercial equipment. This list may not be exhaustive — contact the Portland Bureau of Planning and Sustainability (BPS) to verify whether your specific business type is allowed under home occupation rules.

• ✕Auto repair, painting, or body work
• ✕Retail sales with on-site inventory display to customers
• ✕Food preparation for commercial sale (requires separate Cottage Food registration)
• ✕Medical, dental, or veterinary offices with on-site patient visits (beyond home consultation)
• ✕Adult entertainment business
• ✕Firearms dealer requiring on-site customer visits
• ✕Welding, metalwork, or woodworking with commercial equipment

Cottage Food Law

Frequently Asked Questions