One of my favourite hcs I like from the Tolkein fandom is when the dwarves would insist that Bilbo is, in fact, a prince. A lord, at the very least. That is taking into account that they’re comparing with Middle Earth’s standards of who rules what in a country, and Bilbo Baggins of Bag End of Underhill, grandson of ‘Old Took’ Thain —who is essentially a chief hobbits would seek counsel from— is (the dwarves can’t stress this enough) in some matter, a prince. Which also means Bilbo’s more or less a royalty of the hobbits.
Thorin, very interested in this but would rather have Smaug burn off what’s left of his beard than admit it: Oh?
Bilbo tries to wave it off by saying the hobbits don’t have the same kind of monarchy most species would have (i.e. men and dwarves), and that their ways are much simpler in that sense. Sure, they have a council, and the Thain would usually elect his heir to take over, but that’s just how leadership is, lads, honestly, there’s no fuss of royalty, or whatsover in the Shire.
Fíli: Bilbo, you own several lands. All of which had been passed down in your family name
Bilbo: Well, that’s because I’m a landlord, and those lands once belonged to my father, so I can’t possibly abandon them—
Kíli: You’re also a grandson to the Thain, who is, might I remind you, a leader of your people, and is someone respected the hobbits would look up to when making decisions for the best of internal or external matters
Bilbo: Well, yes, I know that—
Fíli: We heard you’re also richer and have the best and fanciest smial out of everyone else here. You’re also someone people have considered in high regard, from the look of things
Both of them: So, you’re royalty!
Anytime one of the company dares to address him as ‘Your Highness’ or anything just as redundant, Bilbo threatens to U-turn back and abandon them to Smaug. Absolutely none of that nonsense, thank you very much, and good evening.
Dwalin, muttering to Balin: He has the royal audacity down to pat
Bilbo squawks and Thorin, who Dwalin had been looking at while he put out that insult, only glowers at him from under his broody slouch.