I asked where he lives/lived.
I'm confused between lives or lived. Some say only lived can be used while others say both lived and lives can be used.
There is no rule which says that all tenses in a statement have to be the same. Please believe that.
In this latest question, I asked puts your action in the past. The next verb defines when on the timeline its event lies. If you used lived, it puts the timestamp of living at the same point as your question; lives implies that the residence is still going on.
I asked where he lives
When you make that statement, you state that your question was in the past, and that you know or anticipate that "he" is now still living where he was at that time.
I asked where he lived
When you make this statement, you state that your question was in the past, and that your question was about where he lived at that time. You make no assertion or assumption that the answer applies now, even though that might be the case.
This question and its answer is essentially the same as the earthquake/havoc one.