I know what you are thinking: "There is no way a human can live in a hobbit hole." You might be surprised.
In fact, there is a man in Oregon that has lived in a Hobbit Hole for the last 20+ years. He became interested in living a simpler life when he read "Payne Hollow," by Harlan Hubbard. Along with the Hobbit Hole, Dan Price constructed a bathhouse, workshop, garage, and sauna. He lives comfortably off of $5,000 a year.
There are many types of Hobbit Holes that one can live in. The standard for most people seems to be the Hobbit Hole cottages. These cottages have a 4'6" round front door, a 14' x 12' inside space that consists of a dining area, kitchen area, living room/bedroom, and a porch.
If you are not ready to live a simpler life in a hobbit hole, these hobbit holes do make great playhouses for the kiddos.
Take a look at the inside of a Hobbit Hole: