Architectural quality and preservation of rural characteristics is a goal of building design for sustainable environments. The environment has a different function for different societies, creating a large variety of meanings. In the Zeta region of Montenegro, the negative transformation of the rural environment is happening more rapidly than the recording of its traditional built assets. Protection and conservation of traditional rural architecture in this rural region of south-eastern Europe are important to both mitigation of the consequences of unsustainable rural shifts and the preservation of cultural heritage. This research focuses on the meaning of the different dwelling and residential environment features for the residents of the traditional houses of the rural areas of the Zeta region, Montenegro. The aim of the research was to obtain more insight and information on the meaning of architectural and rural design features by exploring the sustainability-related characteristics of traditional rural houses in the so-far insufficiently studied micro-region of the western Balkans to reveal their value and to initiate discussion of the role of heritage regeneration in sustainable rural development. Fifty (50) traditional houses of agrarian and rural areas of the Zeta region of Montenegro were observed and analysed in terms of the building site, space planning of the interior space, and building materials used. The analysis has revealed that many ecological aspects were taken into consideration and different methods were implemented during the construction of the traditional houses of the Zeta region. Taking into consideration the age of those structures, the constructors did not have an in-depth awareness of sustainability theories, and they were acting based on their personal practices and specific environmental requirements. This study’s results can help update a database of sustainability for the traditional architectural heritage of Montenegro, which will enhance the process of creating sustainable buildings without losing the place identity and staying in the same cultural context. Restoration of the traditional houses of the Zeta region of Montenegro, but also of the other rural areas of Montenegro, must in future be defined in a way that enables the preservation of recognized general values and further improvement of environmental quality and climate resilience. Simultaneously, functional reactivation of traditional houses should be understood as a contribution to the sustainable development of the studied region of Montenegro.