Does family sharing allow content not purchased through itunes?

Most of my music has been ripped from my CDs, not purchased through itunes. The family sharing feature in ios8 sounds tempting since I currently have 4 of us working from a single account which causes some issues at times. Will I still be able to share the ripped CDs and other content not purchased from itunes with other family members if we split up and then turn on family sharing?
Thus far, the 5S that just arrived today is the only device with ios8 on it. The other iphones and ipads in the house will need to be updated when it seems safe to do so. We are also running itunes on two macbook pros and a few PCs.

Yes, home sharing works with both purchased and ripped music, as well as videos.  It does not allow you to move content from one computer to another; it allows you to stream content from one computer to another computer or device on the local network (or connected via a VPN).
If you want to access music outside of your network and copying it is a problem, then you might consider Match.

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