I guess UPS sees this 2 ways, I believe the primary would be you need posted business hours, parking spaces, public entrance for a commercial stop.....whether they live there or not is another issue.
The criteria for a commercial stop needs to be met regardless.
No, UPS sees this as one way and it's stated below. UPS makes no mention of business hours, parking spaces or public entrance in their service guide or tariff. Can those things help you decide if it's commercial or residential? Perhaps, but at the end of the day, UPS makes the rule on the designation and this is the complete UPS policy:
"Residential refers to an address that is a home, including, but not limited to, a business operating out of a home. If an address can be construed as either Residential or Commercial, then it will be considered Residential."
No need to overthink this or put a personal interpretation on the rule - it's pretty clear.