Smokey went what we call "free range house rabbit" about 12-14 weeks ago and it is workingvery well.
He is about 15 mo old and after his neutering last Christmas, has been such a good boy about not chewing or digging at things, especially carpet, that we thought about letting him out 24/7. His toilet habbits are also pretty good. He gets a little of what we call "shotgun butt" but he always pees in the litterbox a leaves 90% of his poop there.
As it was he was only in hiscondo from about 2am to 8am - see the nic cage only thread for a pic. From about 10am to 6pm he spent all of his time sacked out under one of the beds. This was so predictable that we felt comfortable enough to leave him alone in the house for a couple of hours through the afternoon.
Since the whole place was bunny proofed all we had to do was get a gate for one of the bedrooms that has an electric tilting bed. Were he to get inside that bed when it was tilted, with it's gears motors and wires, the result could be very tragic. Oh, this bed when laid flat is favorite place to afternoon sleep.
Now he has come to accept the fact that he is not allowed in the one bedroom after dark, but knows that he will be let in the next morning. He has full access to the rest of the house - except the bathroom - but he mostly stays in the living room as the other bedroom and kitchen have hardwood floors.
We leave a low light on a timer set to go off about 4am so gets some light then a bit of darkness after we go to bed. We leave a small radio on a "music of your life" station to give him a little background noise..
The whole thing has worked well for all of us. The humans don't have to chase the rabbit that won't go to bed
Smokey is very content because he he can live on his "rabbit clock" and run around in the pre-dawn hours.
The only thing we have to look out for is if you sleep on the living room sofa, you will get pounced on at 5am