Homelessness is a global challenge that impacts many population groups, including adults, families, and children. People become homeless for various reasons, and international data underestimates the prevalence of homelessness. The impact of homelessness on health and wellbeing is well described, including reduced life expectancy and significant morbidity. A lack of housing stock, increased waiting lists, and provision of temporary and emergency accommodation exist globally, with inconsistencies in approach and provision. Limited data are reported on the impact of the living conditions on health and wellbeing for people experiencing homelessness. This feasibility study was co-designed with one charitable partner organization that sought to understand the impact of providing a lower-density accommodation unit at the individual and service levels. The intention was to provide evidence of the impact to enable further funding and development. This paper reports on qualitative interviews with previous residents, service providers, and local key informants to understand the impact and experience of this type of accommodation unit. A workshop was subsequently facilitated to review the data and co-develop recommendations for practice. Ethical approval was provided (2023), and data collection was completed (October 2023 to February 2024). Thematic data analysis of interviews was completed, and four themes were reported: 'Sense of Home Environment', 'Empowerment to Independent Living', 'Building New Identities', and 'Future Planning'. Nine recommendations support the development of service planning and delivery. This study, which assessed the feasibility of a type of accommodation, demonstrates the strengths of using engaged research methods.