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With an increasing number of Internet of Things (IoT) devices present in homes, there is a rise in the number of potential infor- mation leakage channels and their associated security threats and privacy risks. Despite a long history of attacks on IoT devices in unprotected home networks, the problem of accurate, rapid detection and prevention of such attacks remains open. Many existing IoT protection solutions are cloud-based, sometimes ineffective, and might share consumer data with unknown third parties. This paper investigates the potential for effective IoT threat detection locally, on a home router, using AI tools combined with classic rule-based traffic-filtering algorithms. Our results show that with a slight rise of router hardware resources caused by machine learn- ing and traffic filtering logic, a typical home router instrumented with our solution is able to effectively detect risks and protect a typical home IoT network, equaling or outperforming existing popular solutions, with- out any effects on benign IoT functionality, and without relying on cloud services and third parties.