A compact rendering processor for processing image data including a multi-bit halftone region generates high addressability pixels. The compact rendering processor includes a tagging sub-processor operating on the image data to identify a target pixel and a neighboring pixel to determine a fill-order. The compact rendering processor also includes a rendering sub-processor that converts the target pixel into a high addressability pixel based upon the fill-order. Optionally, a diffusion sub-processor can be included to diffuse an error resulting from the conversion of the target pixel into a high addressability pixel to other pixels within the image data.