Yes, niche is in the scrabble dictionary

...and is worth 11 points by itself.

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Niche Definition

noun

A cranny, hollow, or crevice, as in rock.
from The American Heritage Dictionary of the English Language, 4th Edition
A recess in a wall, as for holding a statue or urn.
from The American Heritage Dictionary of the English Language, 4th Edition
A special area of demand for a product or service: "One niche that is approaching mass-market proportions is held by regional magazines” ( Brad Edmondson).
from The American Heritage Dictionary of the English Language, 4th Edition
Ecology The function or position of an organism or population within an ecological community.
from The American Heritage Dictionary of the English Language, 4th Edition
Ecology The particular area within a habitat occupied by an organism.
from The American Heritage Dictionary of the English Language, 4th Edition

verb-transitive

To place in a niche.
from The American Heritage Dictionary of the English Language, 4th Edition

verb

To place in or as if in a niche .
from Free Scrabble Dictionary

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Top Words by points

Points

chine

10

2 letter words with NICHE

Points

ne

2

eh

5

en

2

he

5

hi

5

in

2

3 letter words with NICHE

Points

chi

8

hen

6

hic

8

hie

6

hin

6

ice

5

ich

8

4 letter words with NICHE

Points

chin

9

nice

6

inch

9

cine

6

5 letter words with NICHE

Points

chine

10

niche

10

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