Currently location targeting allows advertisers to select their target audience based on country, province, city, postal code or even a specific business address. With the added benefit of adding radius targeting around the above selections and also adding excluded locations. Now Facebook has added an additional layer of detail when it comes to location targeting by adding multiple options to refine the targeting to users within this selection who would be the most interested in your content.
The choices for audiences within a location are:
Everyone in this location: Users whose current location on their Facebook profile is the selected location, as well as anyone determined to be in that location through their mobile devices.
People who live in this location: Users whose current location on their Facebook profile is that location. This is also validated by IP address.
Recently in this location: Users whose most recent location is in the selected area, as determined through the users’ mobile device. This also includes users who live there, or who may be travelling there.
People travelling in this location: Users whose most recent location is within the selected area, and are greater than 100 miles from their stated home location in their Facebook profiles.
You may find this is only available in the US but expect rollout across all markets, imminently.