If you are at a fixed address and under the ever watchful eye of the neighbours you will certainly need to take more action to protect your children and yourself.
It is lawful to home school in almost every state...
It is possible to home school in almost every state in the U.S.A. You just need to know how. This applies to other countries as well. To get detailed home schooling state laws check out the HSLDA (USA) home schooling law site. For home schooling in Canada go to the HSLDA (Canada).
Home schooling law requirements...
Requirements for each state vary and fall under four categories:
State requiring no notice
No state requirement for parents to initiate any contact
State with low regulation
State requires parental notification only
State with moderate regulation
State requires parents to send notification, test scores, and/or professional evaluation of student progress
State with high regulation
State requres parents to send notification or achievement test scores and/or professional evaluation, plus other requirements (e.g. curriculum approval by the state, teacher qualification of parents, or home visits by state officials)
Keep home school records...
Regardless of what country you live in you should faithfully keep home school records to protect your family and to have something tangible to show authorities or visitors, if requested, according to home schooling law. After you have done the necessary research and have set up your records you should be business-like, tactful and cooperative with the authorities so that you can avoid harrassment or prosecution.
For detailed information on the different types of home school records click here: Home School Records.