John Howard's decision to stay at the luxurious Blair House mansion in Washington DC has sparked a firestorm of protest in the US.
Outraged American taxpayers are demanding the former Australian prime minister book a hotel or stay at the Australian embassy.
The story is also a hot topic on US radio and TV talk shows.
For weeks the name of the occupant booked at Blair House on January 12 was a mystery.
President-elect Barack Obama and his family asked to stay at Blair House before taking the keys to the White House but were told it was already booked.
It forced Obama, his wife Michelle and young daughters, Malia and Sasha, to stay at a DC hotel, the Hay-Adams.
On Tuesday, the Washington Post broke the news that Howard and his wife Janette were the mystery boarders.
"Let the former prime minister John Howard stay at the Hay-Adams," Jeffrey Toobin, the senior political analyst for US news TV network CNN, said in a discussion on the topic on Wednesday.
US President George W Bush offered Howard Blair House weeks ago when he invited him to DC to receive the Medal of Freedom for his support of the US in the war on terror.
Blair House is one of Washington's most luxurious residences, a 6,500 square metre mansion with 119 rooms, conveniently located across the street from the White House.
Bush's two other key allies, former British prime minister Tony Blair and Colombian President Alvaro Uribe, will also receive the medal at a ceremony at the White House, but both declined offers to stay at Blair House.
Blair will stay at the British Embassy while Uribe has found his own digs.
"This irritates me to NO end!," a Boston Globe reader wrote on the newspaper's website.
"The Blair House is owned by the American People!
"We have elected Mr Obama as our next president, yet this administration lets Mr Howard stay at Blair House! Move his backside to a hotel. Let the little girls and their family - the Obamas - have Blair House."
A Washington Post reader agreed, venting with: "WOW, Australia doesn't have an Embassy in Washington? Or is John Howard just so reviled by his own countrymen that they won't let him stay there?"
Some Americans did support Howard.
"John Howard is a great friend of America and deserves to stay at Blair House," another Washington Post reader wrote.
Howard and Obama do have some history.
In February 2007, when Howard was still in power and Obama was considered an outside chance to win the presidency, Howard took issue with the then Illinois Senator's plan to set a timetable to withdraw US troops from Iraq.
"I hope Mr Obama does not become president of the US," Howard said in an interview with Australia's Nine Network that was picked up by the US media.
Obama returned fire, labelling Howard's words as "empty rhetoric".
"We have close to 140,000 troops on the ground now and my understanding is that Mr Howard has deployed 1,400," Obama said back in 2007.
"So if he's ginned up to fight the good fight in Iraq, I would suggest he calls up another 20,000 Australians and sends them up to Iraq"
A Washington Post reader pondered whether the exchange almost two years was behind Howard's decision to stay at Blair House.
"Perhaps this is payback," the reader wrote.
"Howard has never hidden his distaste for Obama and his crazy policies like withdrawing from Iraq."
Howard has stressed that he is staying just one night in Blair House.
A spokesman for Mr Howard was tight-lipped about the issue but sought to play down some of the more colourful media reports.
"The Howards will be staying for one night as per the invitation from President Bush," the spokesman told AAP on Thursday.
"Contrary to some reports, he won't be travelling with an entourage, it will just be him and Mrs Howard."
The spokesman declined to comment further.
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