diff --git a/src/lang/english.txt b/src/lang/english.txt
index 377a0cfcb7..740385f2d4 100644
--- a/src/lang/english.txt
+++ b/src/lang/english.txt
@@ -2010,6 +2010,10 @@ STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_HELPTEXT         :Allow manually
 STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_GRF                    :Ignore house GRF restrictions: {STRING2}
 STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_GRF_HELPTEXT           :Allow manually adding houses even if this is not permitted by the house GRF.
 
+STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_OFF              :Off
+STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_WITHIN_TOWN      :Within town
+STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_ANYWHERE         :Anywhere
+
 # Config errors
 STR_CONFIG_ERROR                                                :{WHITE}Error with the configuration file...
 STR_CONFIG_ERROR_ARRAY                                          :{WHITE}... error in array '{RAW_STRING}'
diff --git a/src/settings_type.h b/src/settings_type.h
index 5166b16ff1..f1d64ae374 100644
--- a/src/settings_type.h
+++ b/src/settings_type.h
@@ -663,7 +663,7 @@ struct DebugSettings {
 struct ScenarioSettings {
 	bool multiple_buildings;                 ///< allow manually adding more than one church/stadium
 	bool house_ignore_dates;                 ///< allow manually adding houses regardless of date restrictions
-	bool house_ignore_zones;                 ///< allow manually adding houses regardless of zone restrictions
+	uint8 house_ignore_zones;                ///< allow manually adding houses regardless of zone restrictions
 	bool house_ignore_grf;                   ///< allow manually adding houses regardless of GRF restrictions
 };
 
diff --git a/src/table/settings.ini b/src/table/settings.ini
index 4bcffb3ce1..add3d8ecd7 100644
--- a/src/table/settings.ini
+++ b/src/table/settings.ini
@@ -5341,12 +5341,18 @@ def      = false
 str      = STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_DATES
 strhelp  = STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_DATES_HELPTEXT
 
-[SDTC_BOOL]
+[SDTC_VAR]
 var      = scenario.house_ignore_zones
+type     = SLE_UINT8
 flags    = SLF_NOT_IN_SAVE | SLF_NO_NETWORK_SYNC
-def      = false
+guiflags = SGF_MULTISTRING
+def      = 0
+min      = 0
+max      = 2
+interval = 1
 str      = STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES
 strhelp  = STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_HELPTEXT
+strval   = STR_CONFIG_SETTING_SCENARIO_HOUSE_IGNORE_ZONES_OFF
 
 [SDTC_BOOL]
 var      = scenario.house_ignore_grf
diff --git a/src/town_gui.cpp b/src/town_gui.cpp
index fc65928847..70e1ba84ab 100644
--- a/src/town_gui.cpp
+++ b/src/town_gui.cpp
@@ -1959,7 +1959,7 @@ static void PlaceProc_House(TileIndex tile)
 	int best_zone = (int)HZB_BEGIN - 1;
 	for (const Town *t : Town::Iterate()) {
 		HouseZonesBits town_zone = TryGetTownRadiusGroup(t, tile);
-		if (HasBit(house_zones, town_zone) || (_settings_client.scenario.house_ignore_zones && town_zone != HZB_END)) {
+		if (HasBit(house_zones, town_zone) || (_settings_client.scenario.house_ignore_zones == 1 && town_zone != HZB_END) || _settings_client.scenario.house_ignore_zones == 2) {
 			/* If CTRL is NOT pressed keep only single town on the list, the best one.
 			 * Otherwise add all towns to the list so they can be shown to the player. */
 			if (!_ctrl_pressed) {
@@ -1979,6 +1979,13 @@ static void PlaceProc_House(TileIndex tile)
 		return;
 	}
 
+	if (towns.size() > 16 && _settings_client.scenario.house_ignore_zones == 2) {
+		std::sort(towns.begin(), towns.end(), [&](const TownID a, const TownID b) {
+			return DistanceSquare(tile, Town::Get(a)->xy) < DistanceSquare(tile, Town::Get(a)->xy);
+		});
+		towns.resize(16);
+	}
+
 	CommandContainer cmd = {
 		tile,
 		_cur_house, // p1 - house type and town index (town not yet set)