For users starting with self-hosting, the first hardware decision is usually between a Raspberry Pi at home and a cheap VPS. Both work for the basic privacy stack (Vaultwarden, Pi-hole, Tailscale, small file services). Each has trade-offs the other does not.
This is the practical comparison.
Cost comparison
Raspberry Pi setup:
- Pi 5 (4 GB): $80
- microSD or USB SSD: $15-50
- Case: $15
- Power supply: $12
- Total upfront: $120-160
- Ongoing: about $25-50/year electricity
Five-year total cost: about $250-410.
VPS setup:
- Hetzner CX11: €3.79/month (about $4/month)
- No upfront hardware cost
- Total ongoing: about $48/year
Five-year total cost: about $240.
The five-year totals are roughly comparable. The Pi has higher upfront cost; the VPS has higher ongoing cost. Both end up similar.
For 10-year horizons, the Pi becomes cheaper because the hardware lasts. For 2-3 year horizons, the VPS is cheaper because no upfront investment.
Reliability comparison
VPS:
- Datacenter-grade uptime (typically 99.95+ percent at the instance level)
- Redundant power, network, cooling
- Hardware failures handled by the provider
- Network bandwidth is consistent and high
Raspberry Pi at home:
- Home network reliability depends on your ISP and router
- Power outages take it down
- Hardware failures (SD card corruption is common) require your manual intervention
- Internet connection from home is consumer-grade (typically 20-100 Mbps upload, asymmetric)
For services that need to be reachable from outside (Vaultwarden accessible while traveling, etc.), VPS reliability is meaningfully better.
For services that primarily serve devices on your home network (Pi-hole as DNS for your home), Pi reliability is sufficient.
Privacy considerations
VPS:
- The hosting provider has physical access to the server
- The hosting provider may comply with legal disclosure requests in their jurisdiction
- Encrypted-at-rest mitigates but does not eliminate this concern
- Standard cloud privacy concerns apply
Raspberry Pi at home:
- You have physical custody of the device and storage
- No hosting provider involved
- Subject to your home network security (which may be weaker than a datacenter)
- Theft or physical access at home is a different threat model than datacenter access
For users with specific concerns about hosting provider trust: Pi at home is meaningfully more controlled.
For users without specific concerns about hosting providers: VPS is fine.
Network considerations
VPS:
- Datacenter network with dedicated bandwidth
- Public IP address (or behind Tailscale/etc.)
- Simple to expose services to the public internet (when desired)
- High-bandwidth uplink for services serving content
Raspberry Pi at home:
- Behind your home NAT
- Either need dynamic DNS plus port forwarding (security concerns) or Tailscale (recommended)
- Limited upload bandwidth from typical home connections
- Local network access is fast and unrestricted
For services that should be private to your devices: Tailscale on Pi works fine and avoids any public exposure.
For services that need public internet visibility: VPS is more straightforward.
Use cases where Pi wins
You want physical control of your data.
You will primarily use the services from devices on your home network.
You enjoy the hardware project aspect of self-hosting.
You have reliable home internet and power.
You want to avoid ongoing hosting fees.
You are willing to accept slightly less reliability for the control benefits.
Use cases where VPS wins
You travel frequently and need services reliably available.
You will share services with people outside your home (family members in different locations, etc.).
You want services exposed to the public internet (a small website, etc.).
Your home internet has bandwidth caps or is unreliable.
You do not want to manage hardware (storage failures, power supply issues, etc.).
You value the cleaner mental model of “the server is in a datacenter, not in my house.”
A hybrid approach
For users who want both: a Pi at home for some services, a VPS for others.
Pi at home: Pi-hole for network DNS, Home Assistant, Nextcloud for personal photos, Jellyfin for media (where bandwidth is local).
VPS: Vaultwarden (always reachable), public website (if you have one), Tailscale exit node for VPN tunneling through your home connection while traveling.
This split costs both the Pi setup and the VPS but gives you the right tool for each service.
For most users starting with self-hosting: pick one to start. Add the other later when you have learned what you need.
A specific recommendation
For users new to self-hosting wanting to learn cheaply with permanent hardware: Raspberry Pi 5 with USB SSD. About $150 total. Run Pi-hole, Vaultwarden, Tailscale.
For users new to self-hosting wanting reliability and minimum hardware management: Hetzner CX11 VPS at €3.79/month. Same services, different infrastructure.
For users wanting both: start with one based on your specific priorities, add the other if and when you have a use case for it.
For users with extensive needs (multiple TB storage, media transcoding, GPU work): neither Pi nor cheap VPS is sufficient. Build a proper home server (used mini-PC) or rent a more capable VPS.
The Pi-versus-VPS choice is genuinely close for the basic privacy stack. Pick by which trade-offs match your situation.
Related: Setting up your first homelab, 13 things I wish someone had told me before self-hosting, Building a home server for Vaultwarden under two hundred dollars