I would instead recommend people use HAOS instead - either running on dedicated hardware OR as a VM. Just dont run it from an SD card if you go down the Raspberry Pi/SBC route - it will kill the card from IO cycles.
I have an IOT VLAN on my network that all the IOT bits sit in, including WIFI devices. What internet access it gets (if any) depends on the device profile.
I tried splitting things up into multiple VLANs but a whole lot of things assume just a flat network, so things stop working if you get too fancy.