Do you have standing water in that area?

Why do you have grass there? Seems awfully tight for mowing. Get rid of it all and add plants. And if there is a roof above with gutters that overflow with heavy rain, then the ground will keep sinking. I have that problem.

If gutters overflow from heavy rain, you dont have big enough gutters, or enough downspouts.

Haha the rabbit and the plant definitely are lonely! I don’t have an eye for design and needed to plop that plant in somewhere because it was a transplant. I plan to move it this spring.
I was thinking a bed too but am not sure if it will sink under the porch as well. Maybe some sort of barrier could be added or just lots of packed dirt.
No standing water and the downspouts are good at directing it away to the side of the house. I try not to keep snow in that area but we do get a bit. The area to the side is slanted away from the house so snow melts down.
Grass was just the initial make due design. The lawn boys cut it well ;) haha but I’m sure a bed there would be easier.

Another problem I’ll have with planting is that it’s a very shaded area in the summer.... not sure what nice plants I can get to grow there other than hostas

No one can suggest plants because you didn't tell us what part of the country you live in.

https://www.finegardening.com/article/shady-planting-ideas

Thanks DM. I was more looking for help on what could be done for the area because I’m clueless with landscaping or carpentry repairs. Plants can come later haha. Thanks for the link. I am in Canada, zone 5.