Better to install Pi-Hole on router or switch/ RAM usage on Pi Zero

The router and Pi-Hole need to be on the same address range. If your router range is 192.x.x.x, then the Pi-Hole needs to be 192.x.x.x or the router and Pi-Hole cannot communicate and the other devices connected to the router can't communicate with the Pi.

Example - your router IP is 192.168.0.1. Then your Pi-Hole should have a static IP between 192.168.0.x, where x is an unused IP address in the range 2 to 254.