Can I get guardianship of my cousin if the state says my house is too small?

It sounds like you need to get a bigger house. Having said that, you may try going to court and getting a guardianship outside of the States framework. If the court makes you the guardian, it will be difficult for the state to keep the child away. However, if you dont have a separate bedroom for your cousin, the court will probably not allow you to have guardianship of him either.

If the size of your living situation is the only problem with placement then you could simply rent an apartment which meets the state requirements. In dependency homes can be disqualified when there are too many people living under one roof. Normally two children of same sex per bedroom is the standard.

You can file a petition for guardianship and have the court decide.