Portland Zoning Restrictions Rules (2026) — What You Need to Know
Few RestrictionsKey Facts
- Type A (No Customers)
- No permit needed
- Type B Permit Fee
- $234
- Max Floor Area
- 25% of home
- Type B Customer Visits
- Up to 8 per day
- Non-Resident Employees (Type B)
- 1 maximum
The Short Version
Portland splits home businesses into two types. Type A home occupations are small-scale businesses with no employees, no customer visits, and no visible signs — think freelancers, remote workers, and online sellers. These don't need any permit at all. Type B home occupations allow up to 1 non-resident employee, limited customer visits (8 per day), and a small sign. Type B requires a $234 permit and a land use review. The big rule for both: you can't use more than 25% of your home's floor area or any accessory structure (like a detached garage) for the business.
Full Breakdown
Portland's home occupation rules (Zoning Code Chapter 33.203) are among the more business-friendly in the Pacific Northwest. The two-tier system lets low-impact businesses operate without any permitting overhead.
Type A businesses have minimal restrictions: no customer traffic, no employees beyond household members, no exterior signage, and no commercial vehicles. This covers most freelancers, consultants, writers, accountants, and online businesses. You don't even need to notify the city.
Type B adds flexibility for businesses that need some customer interaction. A therapist seeing clients at home, a music teacher giving lessons, or a hair stylist with a home studio would fall into this category. The 8-customer-per-day limit and 1-employee cap keep the scale residential. You'll need a Type B permit ($234) and a land use review that includes neighbor notification. The process takes about 6-8 weeks. Neighbors can object, and if enough do, the application may be denied or conditioned.
What Happens If You Violate This?
Operating a Type B business without a permit results in a code violation with 30 days to apply for the permit or cease operations. Fines are $500 for the first violation and up to $1,000 per day for ongoing non-compliance. Exceeding customer or employee limits can trigger permit revocation.
Frequently Asked Questions
Do I need a Portland business license for a home business?
Can I run an Etsy shop from my Portland home?
Can I convert my garage into a workshop for my home business?
How does Portland compare?
See how Portland's zoning restrictions rules stack up against other locations.