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 local building department or local planning department 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: a home occupation permit. Fee: varies. Apply through the local building department. 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

No specific restrictions listed beyond standard building code requirements for Portland home-based businesses.

• •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

Cottage Food Law

Frequently Asked Questions