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With the 1.3 update currently available as a beta on Steam, multiplayer has been added to the game. When on a multiplayer farm, it's possible to build cabins that can house up to three additional players.

It also possible, however, to build cabins in singleplayer farms. Why would I want to do that?

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Cabins are used to convert your single player worlds into multiplayer worlds. So while you can create an entirely new farm with up-to three cabins from the get-go, if you wish to share your existing single player world to another player you can get Robin to build a cabin for them.

How do I host my farm?
Each player needs to have their own home on the farm, so the first thing you’re going to have to do is build each of your friends a cabin to live in. Don’t worry, they’re cheap! You can have up to three on your farm.

When your cabins are built, save, return to the title screen and open the co-op menu. Your file should appear in the host tab. Source

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Since you can sleep in any cabin's bed, another minor benefit in single player would be to use cabins as a conveniently located bed close to the other exits of the farm.

The main house is closest to the upper right exit.
A cabin can be placed near the upper left exit.
A cabin can also be placed near the bottom exit.

Could come in handy when you are cutting it close to 2am and rushing back to your farm from one of the other entrances/exits.

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    This is how I use the cabins in multiplayer, since any farmhand/player can sleep in any bed. – Malco Jun 26 '18 at 16:23
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In single player they could be used to get some cheap floor space for kegs/houseplants. They only cost 100g and 10 stone. But I don't think they would serve much purpose outside of that.

  • Additionally if you can get someone to join in temporarily for you, the Farmhand cabins can be upgraded by Robin to provide even more space. – Malco Jun 26 '18 at 16:24
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    They can also be used to get additional cellar space for casks, since casks don't work anywhere else. – jpmc26 Sep 9 '18 at 0:09

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