Can I run a home business here?

Yes, within limits. Home occupations are a limited accessory use in the conventional residential, neighborhood density, and CD-2 through CD-4 districts. Sec. 5.1.3.4 requires that the business stay incidental to the home: no change to the exterior residential character, at most 20 percent of floor area and never more than 600 square feet, no more than one employee from outside the household, one business vehicle of one ton or less parked behind the front building line, outdoor activity limited to 8 a.m. to 6 p.m. and indoor to 10 p.m., no outside storage or display, and one flush mounted sign up to two square feet. Offices, tutoring or lessons for up to two pupils at a time, home crafts, small item repair, registered family homes, and single customer barber or beauty service are on the allowed list; restaurants, vehicle or engine repair, kennels, and walk-in retail are prohibited. San Marcos zoning applies inside the incorporated city limits only; Texas counties do not zone, and ETJ parcels have no municipal zoning. A further Development Code update was adopted on second reading June 16, 2026 but is not yet published, so confirm current standards with the Planning Division at 512-393-8230 before design, purchase, leasing, or permitting decisions.