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Vanderburgh County, IN Home Business: Zoning & Home Occupation Permits (2026)

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

Key Facts

Governing section
Vanderburgh County Code § 17.16.040(A)(2)
Floor area cap
25% of dwelling floor area
Employees allowed
None, resident operator only
Permit required
Occupancy permit from Area Plan Commission
First-offense penalty
Up to $500 civil fine
Applies in
Unincorporated county, R-1/R-2/R-3 districts

Summary

In Vanderburgh County's R-1 Residential district, a home occupation is only a lawful accessory use if it stays inside the dwelling, uses no more than 25% of the floor area, hires no outside employees and gets an occupancy permit from the Area Plan Commission before opening.

City-specific rules exist: Evansville has its own zoning & home occupation permits rules that differ from Vanderburgh County's county-level regulations. If you live in Evansville, check the city-specific page instead.

2. Use group 2 as accessory uses subject to the following restrictions:

a. The home occupation must be conducted entirely within the dwelling by a person who is a resident member of the family residing on the premises, and with no additional employees,

b. The floor area devoted to the use may not exceed twenty-five (25) percent of the floor area of the dwelling,

c. An outside entrance may not be provided solely for the home occupation,

d. A display of goods or services relating to the home occupation may not be visible from the exterior of the building,

...

f. An occupancy permit must be issued by the plan commission for each home occupation;

Full Breakdown

040. The rule set is specific: the operator must be a resident family member of the household, and the business cannot bring on additional employees working from the home. The space devoted to the occupation is capped at 25 percent of the dwelling's total floor area, so a business cannot take over an attached garage conversion or a majority of the house. The code also bars any outside entrance built solely to serve the home occupation and prohibits any display of goods or services visible from outside the building, meaning storefront-style windows or yard displays are not allowed.

Before operating, the resident must obtain an occupancy permit issued by the plan commission specifically for the home occupation; this is a separate approval from a general building occupancy permit and is required for every home occupation, not just certain trades. 060(A)(2)), so the standard travels with residential zoning generally rather than applying only to R-1. Because this is the County Zoning Code, it governs the unincorporated area of Vanderburgh County; property inside Evansville's city limits is regulated under the parallel city zoning title administered by the same joint commission. 36 as ordinance violations rather than criminal matters, with the Area Plan Commission issuing the citation.

Violations & Fines

A violation of the home occupation standards is cited by the Area Plan Commission under Section 17.36.150 as a County Zoning Code violation (Chapters 17.04 through 17.38). A first offense draws a civil penalty of up to $500; a second violation within 12 months rises to $1,000, a third to $2,500, a fourth to $5,000, and any further violation to $7,500. Continuing violations count as a separate offense each day the property stays out of compliance, penalties are due to the County Treasurer within 30 days, and the commission may withhold new Improvement Location Permits until the property is compliant.

Frequently Asked Questions

Can I hire an employee to help with my home business in Vanderburgh County?
No. Section 17.16.040(A)(2)(a) requires the home occupation to be run by a resident member of the family living in the dwelling, with no additional employees. Bringing on outside staff who work from the property takes the use outside what the accessory-use zoning permits.
Do I need a permit to run a home business from my house in the county?
Yes. Section 17.16.040(A)(2)(f) requires an occupancy permit issued by the Area Plan Commission specifically for the home occupation before you begin operating, separate from any general building permit for the structure.
How much of my house can my home business use?
Up to 25 percent of the dwelling's total floor area under Section 17.16.040(A)(2)(b). Using a larger share, such as converting most of the house to workshop or retail space, exceeds what the residential zoning allows as an accessory use.
What happens if I violate the home occupation rules?
The Area Plan Commission can issue a Notice of Ordinance Violation under Section 17.36.150, carrying a civil penalty starting at up to $500 for a first offense and climbing to $1,000, $2,500, $5,000, and $7,500 for repeat violations within a year, with each day of noncompliance a separate offense.

Sources & Official References

Other rules in Vanderburgh County

All Vanderburgh County rules

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

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