@Ankit2 Airbnb does not have any rules against booking in your city of residence. But if there's some kind of local law restricting your access to hotels, Airbnb would be obliged to defer to that.
Also, many hosts are hesitant to host locals because these bookings have a whole extra set of risks - for example, that the guest might be using the property for criminal activity, a party, or an attempt at refusing to leave. A host might have reasonable concerns that the family issues that forced you out of your own home are going to follow you into theirs.