Hey David. Some verbs don't follow the rule. one of those is (居)住
Other examples:
我住在新加坡 I live in Singapore
小明畫寫字在筆記本上 Xiao Ming writes characters on his notebook
這場火災發生在秘魯的雨林裡 This fire happened in the Peruvian rain forest
小王畫圖在紙上 Xiao Wang draws on the paper
小黃躺在床上 Xiao Huang lies on the bed