@Mindy115 Hosts do have a vested interest in knowing whether a guest is a resident of the local area, especially considering the prevalence of parties. But guests with devious plans can put anything they want in their profiles to evade suspicion, so any trust in the information displayed there is misplaced.
As far as Covid screening goes, I don't find it very useful to go by the home city displayed on the user profile. There's no way to know if the guest still lives there, let alone where they might have been visiting in the weeks prior to their stay. The relevancy of localized hotspots is over half a year out of date at this stage in the pandemic, and if a stay-at-home order is in place in your province, one might question whether accepting guests from anywhere is responsible at the moment.