Excerpt:

The Hobbit House, in northwest Montana, about a three-hour drive from Spokane, Wash., is a guesthouse. Number of units: one. But it is a large unit. The Web site, which the reporter studies before arriving, shows a 1,000-square-foot structure built into a hill, on a 20-acre site dotted with structures that range from small to perfect for squashing with your foot: a four-foot stump-shaped troll house, a few round-door hobbit houses with chimney pipes and several shoe-box-size fairy houses.

But what is a visit to the Hobbit House without a tour of the shire? Into the RTV we go, accompanied by Mr. Michaels’s dog, Libby, a collie-shepherd mix. Here is a tiny sod-roof house belonging to Frodo, a Baggins relation; there, in the trunk of a tree, is a mother-son fairy abode (complete with two doors). Not everything is hobbitically accurate: there is a two-foot-tall hairy-back frog, because Mr. Michaels figured that if hobbits were hairy, their frogs should be, too.

“And look,” he says, steering the cart toward the sod-covered roof of the life-size guesthouse. “You can drive over the house, because it’s built into the ground. Right now, we’re 30 feet over your bedroom.”

Link to a story written by a New York Times reporter with a photo slide show
http://www.nytimes.com/2011/08/11/garden/the-hobbit-house-in-montana.html?pagewanted=all&_r=0

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