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Selfhosted
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So many suggestions here but I thought I'd chime in because I have a setup very similar to what you suggested and I found a very easy way of hosting it securely. I am using Unraid on a system in my house. I have my web service running in a docker container. I exposed it using a cloudflare tunnel. There is an Unraid plugin for cloudflare tunnels that takes out a lot of the configuration work involved in getting it running locally. You just have to also set up a corresponding endpoint on Cloudflare's website and have a domain name registered with them for you to link to it.
The way it works then is when someone requests your domain (or subdomain) in their browser, Cloudflare gets the request and redirects the traffic to the cloudflare tunnel client app that you set up in your computer. That app on your machine then redirects the traffic to your other container that is hosting your web service and established bidirectional communication that way.
The benefits to this system are:
Downsides:
I believe you can use Wireguard and a rented VPS to recreate this setup without Cloudflare but it will require a lot more knowledge in order to set it up with more points of failure. And it would cost more because even though Wireguard is FOSS, a VPS will cost you a monthly fee of at least a few bucks per month.
I currently have 2 services exposed using Cloudflare tunnels on my Unraid system at home. They've been running for over a year now with 0 interruption.
Thanks for the detailed explanation, really appriciate it! Learned a thing or two here :)