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Olmsted County, MN Home Business: Zoning & Home Occupation Permits (2026)

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

Key Facts

Floor area cap
25% of dwelling
Alteration cap
25% of building value
Employees allowed
household members only (R-A/R-1/R-2/ARC/RSD)
Accessory structures
one, plus the dwelling
Business vehicles
max 2, under 12,000-lb class
Barred uses
adult establishments, cannabis businesses

Summary

Olmsted County lets homeowners run a home business as an accessory use, but caps it at 25% of the dwelling's floor area and bars alterations exceeding 25% of the property's assessed building value. In the R-A, R-1, R-2, ARC and RSD districts, only household members may work there, and it must run out of the dwelling plus no more than one accessory structure.

These county ordinances apply to unincorporated areas of Olmsted County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

In any zoning district where home businesses are authorized, a home business shall comply with the following regulations: 1. Said use shall occupy an area no more than twenty five (25%) percent of the total floor area of the dwelling. 2. No home business shall require interior or exterior alterations of the dwelling exceeding 25% of the estimated building value... B. A home business allowed in the R-A, R-1, R-2, ARC or RSD Districts shall comply with the following regulations, in addition to the requirements of Section 10.02 A. 1. No person shall be employed other than a member of the household residing on the premises.

Full Breakdown

02 sets the countywide standard for home businesses in any district where they are authorized: the use cannot occupy more than 25% of the dwelling's total floor area, and no interior or exterior alteration may exceed 25% of the estimated building value on the current Olmsted County property records. Emissions, discharges, odor, dust, noise, electrical disturbance, glare or vibration cannot exceed Minnesota Pollution Control Agency standards, parking generated by the business must be off-street and outside the required front and side-street yards, and adult establishments and cannabis businesses are barred as home occupations entirely.

B layers on additional requirements: only a household member living on the premises may be employed, the business must be conducted entirely within the dwelling and no more than one accessory structure (apart from pools, tennis courts and similar outdoor recreation, or outdoor daycare facilities), and no more than two licensed, operable vehicles connected to the business may be visible on the property, limited to two-axle, six-tire single-unit vehicles under the Federal Highway Administration's classification, with no vehicle sign exceeding 40 square feet per side.

Permitted uses in those districts include professional offices (attorneys, doctors, dentists, financial, insurance, real estate, engineering, advertising, artist or photo studios), limited personal services, on-premises production of apparel and similar goods, certain retail of goods made on-site, and small repair services such as jewelry or watch repair; any other home business must go through the conditional use permit process.

Violations & Fines

A home business that exceeds the 25% floor-area cap, employs a non-household member, operates from more than one accessory structure, or keeps more than two qualifying vehicles visible is out of compliance with Section 10.02 and can be denied or revoked through the zoning enforcement process under Chapter 1400. Businesses not on the permitted-use list in Section 10.02.B.6 must obtain a conditional use permit before operating.

Frequently Asked Questions

How much of my house can I use for a home business in Olmsted County?
No more than 25% of the dwelling's total floor area, per Section 10.02.A.1, and any alteration to accommodate the business can't exceed 25% of the property's assessed building value under county records.
Can I hire employees for my home business?
In the R-A, R-1, R-2, ARC or RSD districts, no. Section 10.02.B.1 limits employment to a member of the household residing on the premises; no outside employees are allowed.
Can I run my business out of my garage or a shed?
Yes, but only one accessory structure beyond the dwelling itself, per Section 10.02.B.2, and it can be used exclusively for storage or for the recreation and daycare exceptions the section lists.
Are all home businesses automatically allowed?
No. Section 10.02.B.6 lists specific permitted uses like professional offices and small repair services; anything else requires a conditional use permit and cannot be a use already handled as a conditional use in the RC, CS or other commercial districts.

Sources & Official References

Other rules in Olmsted County

All Olmsted County rules

How Olmsted County compares: Easiest Cities to Run a Home Business·Compare Olmsted County to another location·View the Minnesota home business overview

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