At an elevation of 150 m above sea level, Niederhausen lies on the Nahe where it marks the division between the outlying edge of the Hunsrück and the North Palatine Uplands.

[4] Clockwise from the north, Niederhausen's neighbours are the municipalities of Hüffelsheim and Norheim, the town of Bad Münster am Stein-Ebernburg and the municipalities of Feilbingert, Oberhausen an der Nahe and Schloßböckelheim, all of which likewise lie within the Bad Kreuznach district.

Niederhausen belonged as an Electoral Mainz fief to the Counts of Veldenz, and the first documentary mention renders its name Unters Husen.

Borderstones marking the former boundary between this state and the neighbouring Kingdom of Bavaria can still be seen along Niederhausen’s southern limit.

In the course of administrative restructuring in Rhineland-Palatinate, Niederhausen was grouped into the Verbandsgemeinde of Bad Münster am Stein-Ebernburg in 1969.

The municipality's arms might in English heraldic language be described thus: Azure three bunches of grapes each slipped and leafed of one fixed in triangle Or, in chief a crown of the same adorned with rubies.

The other charge, the crown in chief (the uppermost level of the shield) refers not only to the village's former patron saint Mechtildis, whose crown also appeared in the old court seal, but also to the marketing slogan for the Nahe wine region: Nahewein – Ein Edelstein (“Nahe wine – a precious stone”).

[10] The following are listed buildings or sites in Rhineland-Palatinate’s Directory of Cultural Monuments:[11] The parish church with its girding wall and defensive tower comes mainly from the 12th century; the quire is Gothic.

The three-span, 75 m-long weir raises the River Nahe's water behind it by roughly 6 m, thereby forming a reservoir some 5 km long.

This enormous intrusion into the natural environment in the Nahe's water gap, however, has brought about its own microclimate of almost Mediterranean character, which is especially conducive to winegrowing.

The former worship site on the Lemberg that was consecrated to the god Mercury suggests that quicksilver was being mined here even in Roman times.

This underground experience gives the visitor a taste of what it was like for generations of miners who worked the cinnabar mine over the centuries.

[14] The Weinwanderweg (“Wine Hiking Trail”) with a total length of about 4.6 km has gathered up more than 340 members worldwide, making it the village's biggest club.

It was already fostering winegrowing in the 19th century, especially against the phylloxera plague introduced from the United States along with the rise in fungal pests.