The 'X Factor' USA judge is terrified about falling back into her old habits after overcoming her struggles with drug-use, bulimia and cutting in 2010 and is thought to have stayed in the high-security home during the entire time she was filming the latest series of Simon Cowell's flagship show.
According to TMZ, the 20-year-old starlet felt she would be safer surrounded by other recovering addicts and wanted to have guidance counsellors on hand to help her.
Despite having a huge mansion in Los Angeles, Demi has reportedly chosen to stay in the sober living facility on and off ever since being discharged from rehab in January 2011.
The 'Skyscraper' singer claims she has always had issues with her body image and confidence, but has overcome them by focusing on staying healthy and avoiding bad influences in her life.
She said in the past: "I'm now taking better care of myself. I don't let my schedule determine who I am. I don't fly around the world constantly. I don't work 24/7.
"You need to be careful of who you hang out with, people you listen to. They can lead you down the wrong path, they can give you the wrong kind of direction. Try to stay away from the temptation."
It is unknown whether Demi will be returning to 'The X Factor' next year, especially since fellow panellist Britney Spears has quit her mentoring role to concentrate on her own music career.