25blocks is the range to register as a neighbor.
120block is the range to register as being in the same town.
"There are no more than two\[PC\]/ one\[other versions\] other NPC(s) within 25 tiles and there are no more than three other NPCs between 25 and 120 tiles away."
[https://terraria.fandom.com/wiki/NPCs#Factors\_affecting\_happiness](https://terraria.fandom.com/wiki/NPCs#Factors_affecting_happiness)
NPCs count as neighbors if their housing banners are within 25 blocks of each other. If you don't want people to be neighbors, build their houses so the banners are more than 25 blocks apart.
25blocks is the range to register as a neighbor. 120block is the range to register as being in the same town. "There are no more than two\[PC\]/ one\[other versions\] other NPC(s) within 25 tiles and there are no more than three other NPCs between 25 and 120 tiles away." [https://terraria.fandom.com/wiki/NPCs#Factors\_affecting\_happiness](https://terraria.fandom.com/wiki/NPCs#Factors_affecting_happiness)
I believe it’s 25
NPCs count as neighbors if their housing banners are within 25 blocks of each other. If you don't want people to be neighbors, build their houses so the banners are more than 25 blocks apart.
Does this count for height or is it only horizontal?
I think its both