If you're doing this then make sure that your router uses your DNS server so you don't have to manually enable it on all your devices (especially those pesky Android devices that don't allow you to have a custom dns server with a dynamic ip).

You can also replace your routers firmware with OpenWRT. OpenWRT uses dnsmasq by default (and allows you to customize the configuration, of course), so you don't even have to use a separate server.