Your biggest single limitation is likely to be that mic - if what you are saying is that you have a single hypercardiod dynamic microphone, that won't be good for recording a full band at all. Not having a stereo pair also makes this pretty tough. Most of the mics we use around here are condensers with high SPL tolerance and a dynamic range of 20-20,000, roughly.
I'm not familiar with the "home studio" that you cited, but if these instruments are going to be running through some kind of soundboard, the best thing to do would be to take a multichannel feed out of that and mix it down. Then you could use that dynamic mic to mic the room and just add a bit of ambiance (although it's a little hard to do that with that mic, too).
What kinds of inputs does the home studio have? Will there be a board? If there is, it may just be to amplify vox and drums. If that's the case, you could maybe get away with mic'ing the guitar amp and, if you have an extra mic, the bass (assuming this is a 4-piece rock band) and then you could run your own mix.