Morgan Hill · Building on your lot

Running a business from home in Morgan Hill

City rule: a home business may use 25% of the home or 400 sq ft, whichever is less, with 1 client at a time.

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Key points

Home businesses: City rule: a home business may use 25% of the home or 400 sq ft, whichever is less, with 1 client at a time.

Each rule below links to the section of the Morgan Hill Municipal Code it was read from, with the code text one click away (checked October 2026). General information, not legal advice.

What Morgan Hill's code says

Morgan Hill code What Morgan Hill's code adds
Space used	No more than 25% of the home's floor area or 400 square feet, whichever is less. § 18.92.060 · code text Home occupations may not occupy more than twenty-five percent of the floor area of the dwelling unit or four hundred square feet, whichever is less.
Customer visits	No more than 1 client or customer at the property at one time. Applies: All home businesses. § 18.92.060 · code text No more than one client/customer at the property at one time. No more than 3 customer or client visits per day. Applies: General rule for home businesses. § 18.92.060 · code text Customer or client visits are limited to three per day, or six per day for personal instruction services (e.g., musical instruction or training, art lessons, academic tutoring). No more than 6 customer or client visits per day. Applies: Personal instruction services, such as music lessons, art lessons or academic tutoring. § 18.92.060 · code text Customer or client visits are limited to three per day, or six per day for personal instruction services (e.g., musical instruction or training, art lessons, academic tutoring).
Employees	Only the people who live in the home. § 18.92.060 · code text Employees of a home occupation shall be limited to the persons residing in the dwelling unit. Up to 2 employees who do not live in the home. Applies: Only if the planning commission approves a conditional use permit. § 18.92.060 · code text The planning commission may allow a home occupation with up to two employees not residing in the dwelling unit with the approval of a conditional use permit.
Permit	Yes. A zoning clearance is required for all home businesses. § 18.92.060 · code text A zoning clearance is required for all home occupations. A Morgan Hill business license and the required license tax. § 18.92.060 · code text All persons conducting a home occupation shall obtain a Morgan Hill business license and pay the required license tax in accordance with Municipal Code Chapter 5.04 (Business Taxes, Licenses, and Regulations).
Businesses not allowed	medical offices and clinics; schools; animal boarding; restaurants; retail involving on-site sales; vehicle-related uses, including vehicle repair and maintenance and vehicle washing; construction and material yards; other similar uses as determined by the community development director § 18.92.060 · code text The following uses are prohibited as home occupations:

Who this affects

HomeownersContractorsDesigners

Frequently asked questions

Can I run a business from my home in Morgan Hill?

City rule: a home business may use 25% of the home or 400 sq ft, whichever is less, with 1 client at a time.

General information, not legal advice.

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Morgan Hill Municipal Code — full text