Flagstaff, AZ Home Business: Zoning & Home Occupation Permits (2026)

Section 10-40.60.180 of the Flagstaff Zoning Code is the operative standard for any business run from a residence. Subsection A makes a Home Occupation a permitted use in every residential zoning district, RR, ER, R1, R1N, MR, HR and MH, once the owner obtains a Home Occupation Permit under Section 10-20.40.070; a business inside a residence located in a commercial zone skips this permit entirely. Subsection B then lays out fourteen standards a permitted home occupation must keep meeting. The use must stay compatible with the residential character of the dwelling and neighborhood (B.1), be run only by residents with no more than one outside employee (B.2), and occupy no more than 10 percent of the dwelling's total floor area without triggering a change in the building's occupancy classification (B.3).

No goods may be displayed or sold on site except limited fresh produce and cottage foods (B.4-5), no more than two home occupations may share a residence within that same 10 percent cap (B.8), and the operation cannot generate excess traffic, interference, or audible noise beyond the site (B.9, B.11). Fire and hazardous-materials use must stay within residential norms under the adopted Fire and Building Codes (B.10), and only one vehicle or trailer under 14,000 pounds GVWR may be kept for the business (B.12). Subsection B.13 requires the Home Occupation Permit before the business opens, and B.14 automatically terminates the permit if the operator moves out or the use changes, requiring a new permit and privilege license for any successor.