In the context of fingerprinting applications, this article presents the performance analysis of a type of space labeling based on the binary quantization of the received signal strength indicator. One of the common drawbacks of fingerprinting is the large data size and consequently the large search space and computational load as a result of either vastness of the positioning area or the finer resolution in the fingerprinting grid map. Our approach can be considered, for example, when we use very small, inexpensive beacons, like those based on bluetooth low energy technology, radio frequency identification, or in the future context of the Internet of Things. One of the interesting properties of this deployment is that it can be interpreted as a form of space labeling or encoding since space is divided into cells, and each cell is associated to a binary codeword with the corresponding scalability of the spatial resolution. Here, it developed the performance estimation, exploiting the association of this deployment to an error correcting code. The analysis and numerical and experimental results allow a deeper understanding of the impact of the proposed solution and show that it is robust and computationally efficient with respect to the traditional fingerprinting technique.