Usually, I’d aim for the cloud environments for public resources (serving more than like 20 people), as the traffic won’t be hitting your home network.
Additionally, selfhosting a public service like Lemmy on your home environment probably wouldn’t have the same uptime or reliability, as I only have one strong ISP signal, and no backup generator.
However, pricing wise, selfhosting at home is much cheaper for the processing power you get.
If I did, I would put it behind something like Cloudflare. I do host a number of lower-traffic WordPress sites from home (<1k hits month). Oddly enough I actually do have backup power so reliability is pretty good.
I would not host anything bandwidth-heavy.