When you create a user profile it does set their home directory to /home/THEIRUSERPROFILENAME but it doesn't create the directory. You have to create it. Just tested this on 7.4 and 7.5.
After you create it this works.
Expect truncation in some spots. Like who owns the directory below?
CHGOWN '/home/ROB4567890' NEWOWN(ROB4567890)
$ ls -l
drwxr-sr-x 20 rob 0 90112 Sep 20 07:35 ROB
drwxrwsrwx 2 rob45678 0 8192 Sep 30 09:50 ROB4567890
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