It is next to the popular North Norfolk village of Wighton, and just 27km from Anmer Hall, where the Duke and Duchess of Cambridge live.
A local told The Sun: "It's away from any neighbours, so would be the perfect party pad."
Within the landscaped grounds is an octagonal summer house situated on the river's edge with fine views of the river valley.
And if Prince Harry ever wants more room, there is a Grade-II listed barn with planning consent for conversion into a five-bedroom house.
Estate Agents Savills called the seven-bedroom mansion an "exceptional family home".
"Water Hall is an exceptional family home, enjoying a wonderfully private and peaceful setting within the Stiffkey Valley," its said on its website.
"The main house, with a most attractive south facade, is constructed of brick and flint.
"The superb family living area comprises an open plan bespoke kitchen with a four-oven Aga, breakfast area and sitting area with an open fireplace.
"An inner hall leads on to an impressive dining room, with French doors to the south, a sitting room with fireplace, an entrance hall and a charming drawing room."
Prince Harry's current home is a two-bedroom cottage at Kensington Palace.
The royal visited Water Hall before leaving for Africa to take part in conservation work, The Sun reported.
He is expected to come back to the UK before the end of this month.
A spokeswoman for the prince declined to comment.
