Every game I play these days has a way to make a house, and build upon it. The key to them is none of them require rent to keep living there. You automatically get a safe spot, and you pay to upgrade it. So, instead of having to pay rent, what if we could convince the landlords that we are the patron protectors of Puddleby, and have earned permanent properties here. As a result, if we collect resources or do some other task for the landlord, we can have our own home rent free. Furniture is still at a premium of course.
I would even take this further to suggest we make storage with Storina free as well, for the same arguments.
The main reason for free rent is twofold. One is that it allows people to never fear of losing access to content because they have not played enough or earned enough coins in a short time. Two, is that a safe spot home for all without the penalty of fees would encourage people to have a personal stake in the game, and enjoy their homes as an integral part of the game. Essentially the second reason is that it will increase popularity for the game, possibly helping to increase population.