What exactly should be set in PYTHONPATH?

You don’t have to set either of them. PYTHONPATH can be set to point to additional directories with private libraries in them. PYTHONHOME sets the location of default libraries.

Documentation:

PYTHONHOME
Change the location of the standard Python libraries. By default, the libraries are searched in prefix/lib/pythonversion and exec_prefix/lib/pythonversion, where prefix and exec_prefix are installation-dependent directories, both defaulting to /usr/local.

When PYTHONHOME is set to a single directory, its value replaces both prefix and exec_prefix. To specify different values for these, set PYTHONHOME to prefix:exec_prefix.

PYTHONPATH
Augment the default search path for module files. The format is the same as the shell’s PATH: one or more directory pathnames separated by os.pathsep (e.g. colons on Unix or semicolons on Windows). Non-existent directories are silently ignored.

In addition to normal directories, individual PYTHONPATH entries may refer to zipfiles containing pure Python modules (in either source or compiled form). Extension modules cannot be imported from zipfiles.

The default search path is installation dependent, but generally begins with prefix/lib/pythonversion (see PYTHONHOME above). It is always appended to PYTHONPATH.

An additional directory will be inserted in the search path in front of PYTHONPATH as described above under Interface options. The search path can be manipulated from within a Python program as the variable sys.path.

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