The “three rights separation” of rural homesteads in China is a unique land management model designed to enhance land use efficiency, flexibility, and the protection of farmers’ rights. This system distinguishes between homestead ownership, qualification rights, and usage rights, with ownership retained by village collectives, qualification rights held by collective members, and usage rights transferable to other entities. While this framework has improved land utilization and provided new avenues for farmers’ welfare, it has also introduced complexities in coordinating the interests of multiple stakeholders in rural housing design.Village collectives, as the owners of homestead land, prioritize macro-value orientation, overall planning, and public facility construction. They focus on maintaining the rural landscape, ecological environment, and cultural heritage. Villagers, holding qualification and usage rights, are primarily concerned with meeting their living and production needs. They require housing that is safe, comfortable, and functional, with adequate space for both living and agricultural activities. Operating entities, which may include external businesses or individuals, seek to maximize economic benefits. Their involvement often introduces commercial functions into rural housing, such as bed-and-breakfasts, agricultural processing facilities, and other income-generating activities.To address these diverse interests, this study proposes a comprehensive strategy for rural housing design. First, a decision-making mechanism that includes representatives from village collectives, villagers, operating entities, and relevant government departments ensures that all stakeholders’ interests are considered in the planning and design process. Regular consultation meetings provide a platform for expressing needs and concerns, leading to more balanced and acceptable outcomes for all parties involved.Second, an assessment and compensation mechanism is essential. Professional teams should evaluate the impact of land transfer and housing renovation on stakeholders’ rights and interests. Based on these assessments, subsidies and compensation should be provided to those who suffer losses for the sake of public interests. This mechanism helps to ensure that the interests of all parties are balanced and that rural housing construction can proceed smoothly. Third, the integration of cultural and technological elements is crucial. Rural housing design should not only preserve traditional architectural symbols but also embody the lifestyle concepts behind them. By combining modern construction techniques with traditional elements, it is possible to enhance the functionality, economy, and comfort of rural housing while maintaining local cultural heritage. Additionally, the use of local materials and traditional craftsmanship can help preserve the rural landscape, while the application of modern technologies, such as energy-saving and prefabricated systems, can improve building performance and safety. Practical applications of these strategies can be seen in Yanqing District, Beijing. A two-level guidance framework, comprising “design guidelines” and “recommended solutions”, has been developed to balance the interests of village collectives and individual villagers. The design guidelines provide clear regulations and positive/negative lists for rural housing construction, ensuring compliance with overall planning and style requirements. The recommended solutions offer a range of design options that cater to different family structures, functional needs, and economic conditions, allowing villagers to select the most suitable designs for their specific circumstances.Demonstration projects have also played a significantrole in showcasing high-quality, adaptable housing designs. These projects serve as examples of how to integrate multiple interests and achieve a balance between functionality and aesthetics. Through on-site visits and experience-sharing activities, the positive outcomes of these projects have been disseminated, encouraging the adoption of similar approaches in other rural areas. In conclusion, rural housing design under the “three rights separation” framework must move beyond a singular focus on physical space construction. Instead, it should adopt a holistic approach that integrates ownership, space, and operational considerations. This integrated approach does not only meet the current needs of all stakeholders but also anticipate and accommodate future changes, ensuring sustainable rural development and contributing to the broader goals of rural revitalization. Future efforts should continue to refine these strategies, improve policy support systems, and strengthen collaboration among all parties involved in rural housing construction.