Current smart home systems can cost upwards of 15,000. This project seeks to create a similar system for 500 or less. A modular smart home contains a network of smart devices that work together to perform homely functions such as turning on lights or adjusting the temperature in a room if movement is detected. To bring costs down an Arduino Mega 2560 microcontroller will be connected to the sensors and output the incoming data to the Raspberry Pi which will act as an interface for the user. This system also avoids the use of an internet connection to make it more difficult for potential hacking of the system. To validate the effectiveness of the modular smart home system, devices such as RFID card access, light switches, temperature sensors, fans, sonar sensors, RGB lighting, and motion sensors will be implemented into a 1/32 scale model of a 2-bedroom house. Once the system has been implemented into the scale house, estimates of cost efficency in the modular smart home will be taken to compare against the $15,000 standard smart home to prove the effectiveness of the system.