Normally whenever Apache read .htaccess file the rules written in .htaccess file will be applied to all its sub-directories. You can check below example:
Here .htaccess file located in above path and will affect all the sub-directories available in hosting folder.
Rules can be over ride in .htaccess files, if you want to override particular rule in sub-directory then you can place .htaccess file in that directory with new directives.
Code:
/$usr/public_html/hosting/.htaccessRules can be over ride in .htaccess files, if you want to override particular rule in sub-directory then you can place .htaccess file in that directory with new directives.