We are in a custody battle with the child's mother and she lives in a 3 bedroom home with 4 adults and 3 children. She states she and her daughter sleep on the couch. Her uncle is on a feeding tube and therefore has his own room is this legal In Indiana?

Sure. Not everyone can afford a five bedroom, six bathroom, 20 acre lot piece of property. Is the house a complete mess with mice and bugs running around at will? That will make the bigger difference. Each child does not have to have their own room. Sure it would be nice if they had a room of their own but if she can't afford it she can't afford it. As long as there aren't problems keeping the child safe and clean and well fed where she sleeps makes little difference.