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The Lord of the Ring Online: Hobbit Description

"In a hole in the ground there lived a hobbit. Not a nasty, dirty, wet hole, filled with the ends of worms and an oozy smell, nor yet a dry hole, bare, sandy hole, with nothing in it to sit down on or to eat: it was a hobbit-hole, and that means comfort." - The Hobbit, "An Unexpected Party"
There are few recorded deeds of Hobbits until late in the Third Age of Middle-earth, which is just the way Hobbits would prefer it. They are simple, quiet folks, preferring to dwell in hillside holes in and around the area known as The Shire in western Eriador. Called "Halflings" by some due to their size relative to Men, these small folk enjoy the peaceful endeavours of farming, eating, and gift giving, rather than concerning themselves with the dangerous affairs of the rest of Middle-earth (save the legends of Hobbit bowmen in the wars of Fornost). In these dark days, however, it is the unassuming Hobbits, with their often surprising adeptness of both word and action, which will have the greatest impact in the war between the Free Peoples and the lengthening Shadow from the North.
From the most modest of beginnings, Hobbits are capable of the grandest of deeds. Their nimbleness and quick-thinking are well documented of course, but Hobbits are not to be underestimated. Hobbits, although small in size relative to the other races, are sturdy of body, determined in their actions, and good with bow or knife (when they have to be). Their small frame belies a toughness and spirit of a capable adventurer in the lands of Middle-earth.