I was originally going to have villagers near each other in sets of 2, but then I couldn't figure out where to place the last two in a place I actually liked. Since I decided I didn't really like what I was doing on my island, I switched to a neighborhood area. I've got two villagers on my highest level, four on the middle and four on the ground level. They each have a small fenced in area! I'm still slowly moving the houses into the right spots though, still have four to go and since I don't time travel, I have to wait for each house to be moved each day!