Monterey, CA Home Business: Zoning & Home Occupation Permits (2026)

Monterey City Code § 38-108 defines home occupations as minor business activities meant to stay compatible with a residential neighborhood, and structures them as a right subject to twelve numbered conditions rather than a discretionary permit for most uses. The employment cap is strict: only residents of the dwelling may work in the business, and no more than two residents total, no outside employees at all. The rules bar any hazardous, explosive, radioactive or otherwise unusual process not normally found in a single-family home, prohibit visible storage or display of materials, and require the work to stay entirely inside the dwelling or an accessory structure since outdoor operation of a home occupation is not permitted under any circumstance.

The business cannot noticeably increase water, sewer, gas or electric use above ordinary residential levels, cannot create noise, odor, dust, vibration, fumes or smoke detectable at the property line, and must not interfere with the required off-street parking or the number of cars meant to fit in the garage. Renters need their landlord's written permission, and every home occupation must comply with all other local, state and federal law. A new or expanded home occupation must obtain zoning review under § 38-150 before starting. Certain uses are barred outright regardless of whether they could otherwise meet the conditions: firearms and ammunition retail sales, sexually oriented businesses, food production outside the state Cottage Food Act, vehicle storage or repair, vehicle sales including e-commerce dispatching, and welding.