The smallest known star right now is OGLE-TR-122b, a red dwarf star that's part of a binary stellar system. This red dwarf the smallest star to ever have its radius accurately measured; 0.12 solar radii. This works out to be 167,000 km.
The smallest theoretical mass for a star to support nuclear fusion is 0.07 or 0.08 solar masses, so smaller stars are out there.
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So, the smallest star is still much too big and too HOT to be close enough to earth to mark out a single house in a small town or village on planet earth as it is roughly the size of Jupiter.