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Gaithersburg, MD Home Business: Zoning & Home Occupation Permits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Classifications
No impact, minor impact, material impact
Floor area cap
1/3 of all structures on the lot
License required
Before business may commence operation
Barred businesses
Cannabis businesses and short-term rentals
Registration term
3 years, renewed triennially
Appeal window
30 days to board of appeals

Summary

Gaithersburg permits home-based businesses under section 24-5.5 as either a no impact, minor impact, or material impact use, with permit requirements scaling from simple registration to a board of appeals special exception. Every home business is capped at one-third of the property's total floor area, needs a city license before opening, and cannot be a cannabis business or a short-term rental.

(B)Standards and requirements. No home-based business shall be permitted to operate unless such operation complies with the following requirements:...(8)The home-based business shall not occupy more than one-third (⅓) of the gross floor area of all structures and accessory structures on the lot....(13)A home-based business shall not commence operation until a license has been issued by the city....(15)Cannabis-related businesses and short-term rentals are not allowed as home-based businesses.( ... C)Classifications of home-based businesses. Home-based businesses shall fall within one of the three (3) following categories...(3)Material impact home-based business. Any home-based business not qualifying under the limitations applicable to either a no impact or minor impact home-based business shall be a special exception use and shall require approval by the board of appeals under the provisions of section 24-12.7, Special exceptions.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 52 Update 1).

Full Breakdown

5 sets out Gaithersburg's zoning framework for operating a business from a home, structured around a stated purpose of allowing home businesses only where they stay subordinate to the residential use and compatible with the neighborhood. Every home-based business must be operated by a resident of the dwelling, confined to the building's interior, and limited to no more than one-third of the gross floor area of all structures and accessory structures on the lot. Deliveries are restricted to common carriers or local merchants and cannot come from a dedicated truck over 14,000 pounds.

5(B)(15) categorically bars cannabis-related businesses and short-term rentals from qualifying as home-based businesses at all. The section then splits every home business into three tiers under subsection (C). A no impact business has no non-resident employees and no discernible adverse impact, and only needs to register with the city manager. A minor impact business may have one non-resident employee and up to 20 client visits per week, and must register and pay a council-set fee. 7, and the board can impose additional conditions. Registrations for no impact and minor impact businesses run three years and must be renewed triennially, during which the city manager updates the file and re-evaluates compliance.

The city manager or designee can inspect any registered or approved home business, and a pattern of refusing inspection is itself grounds to revoke the registration or ask the board of appeals to revoke a special exception. 9.

Violations & Fines

Operating a home-based business without the required registration or special exception, exceeding the one-third floor-area cap, or running a business the code categorically bars, such as a cannabis business or short-term rental, from a home is a zoning violation under section 24-15.1, enforced as a municipal infraction under chapter 1, section 1-9. The city manager can suspend or revoke approval, fines run to the council-set maximum with up to $1,000 added for nonpayment, and section 1-11 allows a lien against the property for correction costs.

Frequently Asked Questions

What kinds of home businesses need a special exception in Gaithersburg?
Any home-based business that exceeds the no impact or minor impact limits, such as more than one non-resident employee or more than 20 client visits a week, is classified material impact under section 24-5.5(C)(3) and needs board of appeals approval as a special exception under section 24-12.7.
Can I run a short-term rental as a home-based business?
No. Section 24-5.5(B)(15) specifically excludes cannabis-related businesses and short-term rentals from qualifying as a home-based business under any classification, regardless of scale.
How much of my house can a home business occupy?
Section 24-5.5(B)(8) caps a home-based business at one-third of the gross floor area of all structures and accessory structures on the lot, and the business must otherwise be confined to the interior of the dwelling or an accessory structure.
Do I need a city license before opening a home business?
Yes. Section 24-5.5(B)(13) states a home-based business shall not commence operation until a license has been issued by the city, in addition to registering or obtaining special exception approval under the applicable impact classification.

Sources & Official References

Other rules in Gaithersburg

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How Gaithersburg compares: Easiest Cities to Run a Home Business·Compare Gaithersburg to another location·View the Maryland home business overview

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