Bluebirds hunt for food close to the ground, so boxes should be placed in pastured areas or mowed lawns where insects can be seen. Ideal habitat is open, closely cropped areas bordered by trees and shrubs. Nearby trees and bushes provide the birds with perching sites which are used for a variety of activities, including looking for intruders and predators, and interactions with their mate. Treed areas also provide important cover for the young when they fledge. Areas adjacent to cereal crops are less desirable for nest box trails because it is difficult for the birds to locate their prey on the ground and because of the risk pesticides being spayed in the area. Boxes placed in or close to treed or brushy areas will be dominated by House Wrens, which will often destroy bluebird eggs and young.
Boxes should be placed 1.2-2m above the ground facing a perching site. The male will use this perch to guard the box and to assist the young on their first fight. Boxes can be mounted on poles, trees of fence posts. If boxes are mounted on fence posts they should face away from the prevailing wind.
Bluebirds are territorial when breeding and have territories of about .81 1.2 ha. (2-3 acres) Boxes should be placed about 90 m apart, since they will not usually nest closer than that.
Our nest boxes were placed a fence post apart in pairs. The holes face east.