If you only have so much room for an image or shrine, and possibly the only place to put it is where you sleep, then this is okay. My shrine is in my bedroom as there is no other place to put it. Here is an article that explains this more in depth. It is an excerpt from a book by Bhante Gunaratana (Forgive me if I have misspelled that) of Sri Lanka. So, if this is your only option, then it is fine. Just do your best to be respectful of the rupa. Don't get bogged down in cultural and/or superstitious ways.http://www.buddhanet.net/e-learning/history/devotion/devotion01.htm
And, if you wish to read more about shrines and such, here is the rest of the excerpt:http://www.buddhanet.net/e-learning/history/devotion/index.htm
Overall, it's a good book. There's a PDF on there, and I have a hard copy.