Mario,
Your format that you suggested is right on for running a report from the report section, but can I make a suggestion to make it a little easier?
First off, you don't have to worry about running a query line for "Last Name". This will be in the report anyway. Second, I would suggest changing the value field to "%". This is called a "wildcard" and will automatically search for any value entered into that field, even if it is blank (as some address line 2 fields are).
Overall though, Bert's suggestion is probably the best for getting unique household addresses. I would suggest using Mario's method if you further want to narrow down that list (by say adding a criteria searching for all your diabetic patients).