diff --git a/src/overlay/PeerBareAddress.cpp b/src/overlay/PeerBareAddress.cpp
index 674e8856c6..1c8884e8be 100644
--- a/src/overlay/PeerBareAddress.cpp
+++ b/src/overlay/PeerBareAddress.cpp
@@ -138,7 +138,8 @@ PeerBareAddress::isPrivate() const
     unsigned long val = addr.to_ulong();
     if (((val >> 24) == 10)        // 10.x.y.z
         || ((val >> 20) == 2753)   // 172.[16-31].x.y
-        || ((val >> 16) == 49320)) // 192.168.x.y
+        || ((val >> 16) == 49320)  // 192.168.x.y
+        || ((val >> 16) == 43518)) // 169.254.x.y (link-local)
     {
         return true;
     }
@@ -148,7 +149,14 @@ PeerBareAddress::isPrivate() const
 bool
 PeerBareAddress::isLocalhost() const
 {
-    return mIP == "127.0.0.1";
+    asio::error_code ec;
+    asio::ip::address_v4 addr = asio::ip::address_v4::from_string(mIP, ec);
+    if (ec)
+    {
+        return false;
+    }
+    unsigned long val = addr.to_ulong();
+    return (val >> 24) == 127; // 127.x.y.z
 }
 
 bool
diff --git a/src/overlay/test/PeerManagerTests.cpp b/src/overlay/test/PeerManagerTests.cpp
index 86586e3512..6a9517d4ee 100644
--- a/src/overlay/test/PeerManagerTests.cpp
+++ b/src/overlay/test/PeerManagerTests.cpp
@@ -87,6 +87,18 @@ TEST_CASE("private addresses", "[overlay][PeerManager]")
     CHECK(pa.isPrivate());
     pa = PeerBareAddress("192.168.1.2", 15);
     CHECK(pa.isPrivate());
+    pa = PeerBareAddress("169.254.169.254", 15);
+    CHECK(pa.isPrivate());
+}
+
+TEST_CASE("localhost addresses", "[overlay][PeerManager]")
+{
+    PeerBareAddress pa("1.2.3.4", 15);
+    CHECK(!pa.isLocalhost());
+    pa = PeerBareAddress("127.0.0.1", 15);
+    CHECK(pa.isLocalhost());
+    pa = PeerBareAddress("127.255.255.255", 15);
+    CHECK(pa.isLocalhost());
 }
 
 TEST_CASE("create peer record", "[overlay][PeerManager]")