Bethlehem, PA Home Business: Zoning Restrictions (2026)

Pennsylvania law treats home occupations as a zoning matter under the MPC; 53 P.S. §10603(b)(1) authorizes Bethlehem to designate uses permitted by right, by special exception, or by conditional use in each district. The PA MPC §10107 "no-impact home-based business" definition operates as a statewide floor: a business is a no-impact home-based business if it is conducted only by the occupants of the dwelling, has no employees other than household members, generates no traffic in excess of normal residential traffic, has no external evidence of the business including no signage visible from outside, uses no equipment beyond ordinary household equipment, and conducts no hazardous activities. Bethlehem must permit no-impact home-based businesses in all residential districts as a matter of state law. A typical three-tier framework in PA municipalities (likely reflected in Bethlehem's Zoning Ordinance under different naming) is: (1) No-Impact Home-Based Business — permitted by right per §10107; (2) Customary or Minor Home Occupation — permitted with a zoning permit, with limits commonly including a cap on floor area (often 25% of the dwelling), one non-resident employee, limited customer traffic, and limited signage; (3) Major Home Occupation — permitted only by special exception from the Zoning Hearing Board with proof of compatibility, off-street parking, and limits on customer hours. Operators must also satisfy any City of Bethlehem business tax obligations and any state-level professional licensing (PA Department of State Bureau of Professional and Occupational Affairs).