Palace and first house type interior

Palace and first house type interior is an entry in the Where enemies appear database, listed under Building.

Each table has 20 slots, weakest first. The game picks a slot near your level: roughly a level-3 to level+3 band, sometimes the first level+1 or level+2 slots, and for a high level the last six slots. The slot a monster sits in is therefore how strong a player it is meant for. Towns spawn nothing by day.