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Salem, OR Home Business: Zoning & Home Occupation Permits (2026)

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

Key Facts

Governing section
SRC 700.020
Nonresident workers allowed on-site
1 maximum
On-site sales
Prohibited
Accessory structure floor area cap
5% of lot area
Combined building floor area cap
25% of dwelling's habitable space
Modification via conditional use
Not allowed

Summary

Salem allows home occupations as a special use in residential zones under SRC 700.020, but confines the business to the operator's own residence, bars outward business appearance, limits on-site help to one nonresident worker, and forbids on-site sales.

Where designated as a special use, a home occupation shall comply with the additional standards set forth in this section. The standards in this section cannot be modified through conditional use approval.(a)A home occupation shall only be conducted in the residence of the person engaged in the home occupation.(b)A home occupation shall be restricted to lawfully-built fully enclosed structures, and shall not be conducted in a manner as to give the outward appearance of a business.(c)A home occupation shall not create a public or private nuisance, including, but not limited to, noise, odors, vibration, fumes, smoke, fire hazard, or electrical, electronic, or electromagnetic interference.(d)A home occupation shall be limited to the provision of services, and shall not include on-site sales.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 26 Update 1).

Full Breakdown

020 sets the standards a home occupation must meet wherever the UDC designates it a special use, and none of these standards can be modified through conditional use approval, meaning there is no discretionary path around them. The business must be run in the operator's own residence, inside lawfully-built, fully enclosed structures, without giving the property the outward appearance of a business. It cannot create a public or private nuisance from noise, odors, vibration, fumes, smoke, fire hazard, or electrical or electromagnetic interference. Home occupations are restricted to providing services and may not include on-site sales of any kind.

Staffing is tightly capped: no more than one nonresident person may work at the property, though additional employees can be associated with the business as long as they never report to work or pick up/deliver there, and the property cannot become a gathering place for off-site workers. Floor-area limits apply on top of the staffing cap: accessory structures used for the home occupation cannot cover more than 5 percent of the total lot area, and all buildings and accessory structures used for the business together cannot exceed 25 percent of the dwelling's habitable space.

No structural alterations can be made that would prevent the property from reverting to purely residential use. Storage of hazardous materials not normally found in a household, and any outdoor storage or display of business materials, equipment, or merchandise, are both prohibited outright.

Violations & Fines

A home occupation that exceeds these standards, such as exceeding the one nonresident-worker limit, conducting on-site sales, or altering the building's outward business appearance, is a UDC violation enforced through the City's code compliance process under SRC chapter 20. Because SRC 700.020 cannot be modified by conditional use approval, a business that outgrows the standards must relocate to a commercial or mixed-use zone rather than seek a variance.

Frequently Asked Questions

Can I hire employees to work at my Salem home business?
You may have only one nonresident person working at the property under SRC 700.020(e). You can employ or associate with additional people, but they cannot report to work, or pick up or deliver, at the home address; all their work must happen off-site.
Can I sell products directly from my home in Salem?
No. SRC 700.020(d) limits home occupations to the provision of services and expressly excludes on-site sales, so retail transactions conducted at the residence are not permitted under this standard.
Can I apply for a variance if my home business needs more space?
No. SRC 700.020 states the standards in that section cannot be modified through conditional use approval, so the 5 percent accessory-structure and 25 percent habitable-space floor limits are fixed; a business that needs more room must relocate to a nonresidential zone.

Sources & Official References

Other rules in Salem

All Salem rules

How Salem compares: Easiest Cities to Run a Home Business·Compare Salem to another location·View the Oregon home business overview

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