Rio Rancho, NM Home Business: Zoning Restrictions (2026)

Home occupations in Rio Rancho are governed by Chapter 121 of the municipal code, the 'Home Occupation Ordinance of the City of Rio Rancho.' Section 121.04 sets the general conditions: the home occupation must be clearly incidental and subordinate to the residential use, and not more than 25% of the dwelling's gross floor area, up to a maximum of 500 square feet, may be used for the business (accessory structures count under the same criteria). Resident occupants may conduct the occupation, and a maximum of one full-time-equivalent employee, not to exceed two persons, may report to the residence. There must be no change in the outside appearance of the building and no open storage of business equipment, and a home occupation cannot eliminate any required off-street parking. Customer hours are limited to 7:00 a.m. through 7:00 p.m. with no more than ten clients/patrons per day, and retail sales are restricted to phone-ordered, appointment-based pickups (no more than one customer vehicle at a time). Section 121.05 lists permitted categories, professional office, general service, instructional service, home artisan business, and small item repair, and prohibited uses including motor vehicle repair, restaurants, kennels, medical/dental offices, private schools, health/exercise facilities, and tattoo parlors. No more than two home occupations may operate on a single site (Section 121.04(K)).