Merced, CA Home Business: Zoning Restrictions (2026)

The City of Merced's Zoning Code, Chapter 20.48 (Home Occupations), establishes how residents may run a business from home while protecting residential neighborhoods. MMC Section 20.48.020 splits home occupations into two categories. A 'minor home occupation' is a home office using only telephone, computer, mail, and common delivery services, with no regular visits (more than twice a week) from employees, customers, clients, students, or patients. A 'major home occupation' is any home-based business that exceeds those limits, and a cottage food operation under the California Homemade Food Act (AB 1616) is classified as a major home occupation. Under MMC Section 20.48.030, a minor home occupation is permitted by-right (no Planning approval, but a home occupation certificate and city business license are required). A major home occupation requires a Site Plan Review Permit with a public hearing, except that a cottage food operation requires a Minor Use Permit. Core standards in MMC Section 20.48.040 apply to all home occupations: the business may not occupy more than 25 percent of the dwelling's floor area or 400 square feet, whichever is less; no products may be sold directly to customers on site or shown in window displays; no dust, odor, noise, vibration, or electrical interference may be perceptible beyond the property line; and the storage of flammable, combustible, or explosive materials and auto repair are prohibited. These rules let many low-impact businesses operate in any residential district while keeping commercial activity out of neighborhoods.