Thanh Hoa Province has 11 mountainous districts with seven ethnic minority groups, and the three largest ethnic groups are the Muong, Thai, and H'Mong. This region has great potential for developing a forest-based economy, ecotourism, community-based tourism, and cultural heritage tourism that is associated with cultural festivals, customs, lifestyles, and traditional housing architecture. However, developing a family-based economy, such as engaging in community-based tourism or agricultural production, has negatively affected and disrupted the structure of village spaces, spatial planning, and traditional house design. The arbitrary construction of additional service spaces and spaces for resident guests within the village space and the precinct of a house has reduced the area of the garden and agricultural land. The self-initiated modification, expansion, and use of non-traditional materials in traditional housing structures by residents to serve tourists have resulted in the loss of the architectural value of traditional homes. The exploitation of agricultural land has affected the natural forest area, the forest protection area at the headwaters, and the vegetation cover and natural ecosystems. Moreover, agricultural economic activities have not been linked to service activities, handicraft production, or tourism, and there are no adaptive residential space models, thus failing to create sustainable livelihood activities. Therefore, the article proposes settlement space models and orientations for residential space development including village spaces, house precincts, and traditional housing spaces of ethnic minorities in Thanh Hoa Province, associated with sustainable livelihoods based on the exploitation of traditional housing architectural heritage values to ensure local economic development. These models are closely linked with the conservation and promotion of ethnic cultural values, landscape preservation, environmental protection, and contribution to poverty reduction for residents.