Player-hosted is enough when everyone plays together
Iron Gate says Valheim supports normal player-hosted P2P sessions and also provides a separate Dedicated Server application. If the same player is always present, paying every month may add little.
Dedicated hosting matters when players log in independently
A persistent world removes one player PC from the critical path. That matters when people farm, build or explore at different times.
Do not oversize for fake slot counts
The current Valheim FAQ says 1.0 supports 1–10 players. Size a server around the group you actually have, world complexity and mods rather than buying a huge plan only because it advertises many slots.
Self-host if you already own suitable hardware
Official support includes a dedicated-server setup guide for the Steam version. Self-hosting can save the rental bill, but you still own the electricity, router/admin work, backups and uptime.
Quick rule
- Same schedule → player-hosted world.
- Different schedules → dedicated server.
- Spare always-on hardware + admin skills → self-hosted dedicated.
- No one wants maintenance → rented game server.
Sources
Official Valheim FAQ and official dedicated-server support guide. Unofficial fan guide; not affiliated with Iron Gate or Coffee Stain.