Lay Buddhist Practice – The Buddhist Shrine
“It is best to start with practices which are common to all Buddhist traditions for every-day observance. It is usual, among the more wealthy lay Buddhists, to have a small room set aside for their daily devotions, or at least a curtained-off recess. A few might even have a small separate building. Even poor people, with little space in their houses, have a special shelf high on the wall on which a Buddha-image or picture is placed together with the usual offerings (see below). Nowhere in the Buddhist world are Buddha-images treated as ornaments for a living room. And a Buddha image is always given the highest “seat” in the room, that is, the Buddha-image is displayed in the place of honor. In the shrine-room this will be on the highest part of a shrine. If on a special shelf (often carved and decorated with color and gold), then that shelf is usually high on the wall and has nothing above it. The fact that one places the symbol of one’s Teacher in the highest place shows one’s high regard for him. For this reason alone it is obvious that Buddha-images should not be placed on mantelpieces and miscellaneous furniture.” From Lay Buddhist Practice – The Shrine Room.
Here’s some youtube on “How To Create a Buddhist Shrine or Altar”
Tibetan tradition