Specifying options accordingly will create the required home dir .Take care of -b, -d , -m options while defining home dirs.
-b, --base-dir BASE_DIR
The default base directory for the system if -d dir is not specified. BASE_DIR is concatenated with the account name to define the home directory. If the -m option is not used, BASE_DIR must exist.
-d, --home HOME_DIR
The new user will be created using HOME_DIR as the value for the user's login directory. The default is to append the LOGIN name to BASE_DIR and use that as the login directory name. The directory HOME_DIR does not have to exist but will not be created if it is missing.
useradd -d /home/james jim