Individuals have the First Amendment right to fly the U.S. flag any way they choose, however these are the recommended ways to fly and respect the flag according to United States Code Title 4 Chapter 1:
When displaying your flag from a pole projecting out from your home or business, the union of the flag should be placed at the peak.
If displaying the flag on a wall or in a window, either horizontally or vertically, the union should be at the top and to the observer's left.
Never display the flag of one country over another. Fly them from separate staffs at the same height.
It is acceptable to fly the U.S. flag on the same pole with flags of states, cities, or other groups. The U.S. flag always goes on the top. If the flags are on separate poles, the U.S. flag always goes on the viewer's left.
If the center staff is the highest in a group of staffs, fly the U.S. flag in the center.
If flying the flag in inclement weather or at night, the flag should always be illuminated.
When hoisting or retiring the flag, take to care not let it touch the ground and store it properly.
When a flag is worn out and can no longer be flown, you can take it to the American Legion or the Boy Scouts and they will hold a special flag ceremony to dispose of it.
To get more flag display information, visit: http://www.ushistory.org/betsy/flagetiq.html