Fargo's Home Business: The Rules That Matter

Every city handles home business a little differently. In Fargo, North Dakota, there are 4 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Home Daycare

Fargo allows small home daycares for 1-7 children as an accessory residential use, but caps it to one outside employee and bars it outright as a principal use in AG and SR districts.

Key details: Home daycare size: 1-7 children or adults. Nonresident employees allowed: 1 maximum, accessory to residential. AG/SR districts: Accessory use only, not principal. Signage: Must meet city sign ordinance. Governing code: Land Development Code § 20-0402(D).

Running a home daycare as a principal (non-accessory) use in an AG or SR district, or staffing it with more than one nonresident employee, puts the property out of compliance with its zoning use approval and can trigger code enforcement action.

Zoning & Home Occupation Permits

Fargo allows home businesses as an accessory use in any residential zone, capped at 25% of floor area and split into Minor and Major Home Occupation tiers.

Key details: Floor area cap: 25% of home (both tiers). Minor tier customers: 4/day, 12/week max. Major tier employees: 1 nonresident, no customers. Major tier customers: Up to 12/day, no employees. Major tier permit: Conditional Use Permit required.

Operating an unpermitted Major Home Occupation, exceeding the 25% floor-area or customer/employee caps, or running a prohibited use is a zoning violation the Inspections/Zoning Administrator can cite; a Major Home Occupation's Conditional Use Permit is void if the property is sold or transferred.

Customer Traffic Restrictions

Fargo caps home-based business client traffic: minor home occupations get 4 customers a day (12/week), majors get 12 a day, both only 7 a.m.-9 p.m.

Key details: Minor occupation limit: 4/day, 12/week, 1 at a time. Major occupation limit: 12 customers per day. Allowed hours: 7:00 a.m. to 9:00 p.m.. Major occupation permit: Conditional Use Permit required. Employee + customer rule: Major: not both, only one.

Exceeding the daily/weekly customer cap or operating outside 7 a.m.-9 p.m. voids the home occupation's compliance; a Major Home Occupation running without an approved Conditional Use Permit is unauthorized and enforceable as a code violation subject to the city's standard ordinance-violation penalties (Sec. 1-03).

Signage Rules

Fargo caps home occupation signage at one sign, one square foot, unlit, and mounted flat to the house.

Key details: Max signs allowed: 1 per site. Max sign size: 1 square foot. Illumination: Not permitted. Mounting: Must attach to dwelling.

Zoning enforcement can order a noncompliant sign removed, and a home occupation found in violation of Sec. 20-0403 standards can lose its right to operate, with Major Home Occupations also risking revocation of their Conditional Use Permit.

The Bottom Line

Fargo's home business rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Fargo is broadly strict or permissive.

Keep in mind that Fargo can amend these rules at any council meeting. For the most current version of any rule mentioned here, check the specific ordinance page, where we track updates as they happen.