Which home directory should 'nobody' have?

I'm messing around with Tiger security audits on my CentOS box, ensuring the server is fit for being online, well as close as it can get anyway. I noticed a warning about the user nobody having / as a home directory. I just can't figure out which directory it should "live in" so to speak. So where shall I put this fella? And how about ncsd now we're at it? I guess the questions really are: What is nobody and ncsd for? Which security risk does it impose for those users to have root set as their home directory? In an optimal environment, where would their home directories be?