Not really what I was asking, I have a small room therefore should I go shoto or 32'
Maate..You're asking a personal preference question without specifics. Okay, so you've got a small room how is anyone supposed to know exactly how small this room is and whether its furnished, cluttered, ceiling height, space restricted etc. etc. If said room is where it's going to be taken out is the primary purpose for switch on/switch off, wall mounted, laid on bed, laid on floor, spinning, shadow dueling etc. etc. There's 6 inches between the 26 & 32 (not much). Depends on what hilt you've got or are going to get that'll contribute to the overall length including blade. Your height and reach are gonna be played also.
My suggestion, grab a measuring tape and mark out a paper towel cardboard core (or don't) that represents your hilt then add either 26 or 32 to it (less about 1.5-2 inches lost in blade holder of hilt) and gauge how much free movement you've got or are comfortable with.
26 vs 32 aside, as Kirabi said:
32 is generally considered to be the best of the three
this suggestion is agreed with. Besides, allow for the times when you take it outside with no ceiling restrictions and the skies the only limit.