As long as you can be within their boundaries if successful there shouldn't be much of an issue, plus they'll see your address on the application anyway. If you find another address near by id be a little wary, but again as long as you can be in the right place once offered a job it should be fine.
One reason some companies are strict with locations is because once qualified you could start looking to move back home with another company
another thing is if the company says "at the time of applying" or not