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Merced County, CA 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
Zoning Code § 18.60.070
Permit required
Zoning Clearance
Space cap
Lesser of 250 sq ft or 25% of living space
Non-resident employees allowed
One maximum
Last amended
Ord. 2039, May 21, 2024

Summary

Unincorporated Merced County allows home occupations only with an approved Zoning Clearance, run by someone who lives in the house plus at most one non-resident employee, confined to the lesser of 250 square feet or 25% of the living space, and never changing the residential character of the property.

These county ordinances apply to unincorporated areas of Merced County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

In zones where permitted, home occupations shall require review and approval of a Zoning Clearance subject to the following standards: A. Operation. 1. Home occupations shall be operated by individuals that reside in the household, with the exception of one non-resident employee... B. 2. Space for the home occupation, including related storage, is limited to the lesser of 250 square feet or 25% of the living space... D. Prohibited Home Occupations. The following home occupations are prohibited in the county: 1. Beauty and barber shops; 2. Medical, dental, or chiropractic offices; 3. On-site vehicle repair, bodywork, and painting (including recreational vehicles); 4. Large appliance and machine repair; and 5. Contractor storage yard.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4930839; v8 updated 2026-06-02).

Full Breakdown

070 sets the standards for home-based businesses in zones where they are permitted. A Zoning Clearance is required before operating, and the business must be run by household residents, with an exception for one non-resident employee. The workspace, including any related storage, is capped at the lesser of 250 square feet or 25% of the home's living space, must be fully enclosed within the structure, and cannot use the required off-street parking; outside storage is prohibited entirely. The structure's exterior cannot be altered, and the occupation cannot be conducted in a way that makes the property look different from a residence, whether through a separate entrance, colors, materials, construction, lighting, signage, or noise and vibration.

Only one advertising vehicle is allowed on site, and any vehicle used for the business cannot exceed the size of a typical utility car, van, or pickup truck. 070(D) flatly bans certain uses as home occupations regardless of these standards, including beauty and barber shops, medical, dental, or chiropractic offices, on-site vehicle repair or bodywork (including RVs), large appliance and machine repair, and contractor storage yards. The rule was last amended by Ordinance 2039 on May 21, 2024.

Violations & Fines

A home occupation operating without an approved Zoning Clearance, exceeding the 250-square-foot/25% space cap, or falling into a prohibited category is a Zoning Code violation. Merced County Code Enforcement investigates complaints and can require the operator to obtain compliance or cease the activity; the Department may revoke the Zoning Clearance for a use that no longer meets the standards of Section 18.60.070.

Frequently Asked Questions

What permit do I need to run a home business in unincorporated Merced County?
Section 18.60.070 requires review and approval of a Zoning Clearance before operating a home occupation in any zone where it is permitted; there is no by-right operation without it.
How much of my house can I use for a home business?
The home occupation, including related storage, is limited to the lesser of 250 square feet or 25% of the home's living space, and it must be fully enclosed within the structure under Section 18.60.070(B)(3).
Can I hire employees who don't live in the house?
Only one non-resident employee is allowed. Section 18.60.070(A)(1) requires the home occupation to otherwise be operated by individuals who reside in the household.
What home businesses are banned outright in Merced County?
Section 18.60.070(D) prohibits beauty and barber shops, medical, dental, or chiropractic offices, on-site vehicle repair or painting including RVs, large appliance and machine repair, and contractor storage yards as home occupations countywide.

Sources & Official References

Other rules in Merced County

All Merced County rules

How Merced County compares: Easiest Cities to Run a Home Business·California rules heatmap·Compare Merced County to another location·View the California home business overview

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