Hillandale CDP (part), Montgomery County, Maryland Home Business: Home Occupation Permits Rules (2026)

Montgomery County Zoning Ordinance Section 59.3.3.3 establishes two categories of home occupation. A Registered Home Occupation is permitted by right in all residential zones and requires registration with the Department of Permitting Services (DPS). The business must be conducted entirely within the dwelling, must not employ non-resident workers on-site, must occupy no more than one-third of the gross floor area, and must have no exterior evidence of business activity. Only one client or customer may visit at a time. A Major Home Occupation requires approval through the conditional use (special exception) process at the Office of Zoning and Administrative Hearings (OZAH). Major home occupations may allow one non-resident employee and slightly greater client traffic, but must still be compatible with the surrounding residential neighborhood. The applicant must demonstrate that the business will not generate noise, traffic, or other impacts beyond what is typical for the area. Examples of common home occupations include consulting, tutoring, art or music instruction, accounting, and web-based businesses. Prohibited home occupations include auto repair, welding, commercial food preparation (beyond cottage food), and any business requiring hazardous material storage.