Verified answer

While the GPS can pinpoint a device within a few meters, it won't be super accurate if it's a multi family dwelling (apartments or condos), but tell him to bring over his laptop and do the find my iPhone thing so you can see where it shows up as well. And then the two of you can look for it.

I mean if he "left" it at your place, then it's his fault it is showing that it is at your house. So helping him look for it is no skin off your nose.

I can track my phone to my house, as it's the only house around for several feet. I had a friend placed it in a field and used my laptop to track it, and well it showed it was in the field, but didn't show any landmarks that it was next to (even though the Sat map showed the landmarks). So for me to have to track it, I would also had to call it to make it ring, to get a better idea of where it was in the field.

Your friend could be bluffing to see if you confess. Or someone else could have hidden the phone in your house, or one of your neighbors might have it.

It could be reporting the last place it was on, and that was your place.