Troutdale, OR Home Business: Zoning Restrictions (2026)

The Troutdale Development Code, in its 2017 codified form most recently amended November 17, 2023, regulates home-based businesses through TDC Chapter 5.100 (Home Occupations), part of Chapter 5 (Miscellaneous Uses, Standards, and Exceptions). Section 5.100 defines a home occupation as 'a lawful occupation carried on in a dwelling by a resident of the dwelling' that is 'secondary to the main use of the property as a residential dwelling' and sets standards designed to keep the operation indistinguishable from a normal residential use. The chapter's standards require: (1) the occupation be conducted by members of the household residing in the dwelling, with limits on non-resident employees; (2) the occupation be carried on entirely within the dwelling unit (or an accessory structure where specifically allowed); (3) the dwelling retain its outward residential appearance, with no commercial display, no outside storage of stock or materials, and signage limited to the small nameplate allowed by the TDC sign standards in the underlying residential district; (4) the operation generate no noise, vibration, glare, fumes, odors, electrical interference, or other off-site impacts that would be detectable beyond the dwelling unit; (5) on-premises retail sale of stock kept for that purpose be limited or prohibited, with mail-order, internet-based, and service-based work generally favored over on-premises retail; (6) customer and client visits be limited so as not to generate traffic or parking demand inconsistent with the residential character of the neighborhood; (7) vehicle storage and use be limited so that commercial vehicles, trailers, and large equipment do not dominate the streetscape. Certain higher-impact uses (vehicle repair, restaurants serving the public, commercial kennels, and similar uses) are categorically inconsistent with the home-occupation definition because they cannot satisfy the no-off-site-impact standard and must operate in a commercial or industrial district. Even when the zoning standards of TDC 5.100 are satisfied, the operator must also obtain a Troutdale business license under Title 5 of the City Code through the City Recorder; the standard license fee is $80 per year on a calendar-year cycle. The Community Development Department (503-674-7230) administers TDC 5.100 zoning approval, and the City Recorder administers the business license; the two approvals run in parallel. Cottage food production and family day-care home uses are layered on top of TDC 5.100 with separate state licensing through the Oregon Department of Agriculture (cottage food) and the Oregon Department of Early Learning and Care (registered/certified family child care homes under ORS 329A); the state programs do not displace TDC 5.100 standards.