Is there a low-traffic corner of your yard? A flower bed is a great spot because you already have plants springing up around your fairy houses (perfect for flower-loving fairies).
Once you’ve selected your space, you’ll want to decide on the number of fairy dwellings you’ll want in your garden. To create a cohesive look, a good rule of thumb is one dwelling per every 1-3 SF.
When it comes to fairies, there are many different kinds! There are spooky fairies, flower fairies, medieval fairies, and plenty more. For lots of ideas, check out The Fairy Bible and the Encyclopedia of Fairies in the World Folklore and Mythology.
In the garden pictured below, I used creeping thyme (my all time favorite for fairy gardens, as it easily drapes over the edge of planters), and some dried dollar store moss.