Aside from the already mentioned benefits in terms of maintenance and hardware cost… A VPS simplifies a lot of routing to the public internet. Many residential ISP’s intentionally make their network design outright hostile to any kind of inbound connection that could be used for hosting services… If you want your services to be accessible from anywhere outside of your home LAN a VPS greatly simplifies such things and guarantees it will always be up rather than being subject to the whims of an ISP’s routing stack.