Yes! Your hometown could help or hurt you depending on where you are applying. Let's look at few (made up) examples.
Example One: You live in San Diego, CA and you want to attend your parent's college- University of North Carolina, Chapel Hill.
Sadly, UNC takes very few out of state students. In this case, your hometown is likely going to make getting admitted much more challenging.
Example Two: You live in Little Rock, AK and you want to attend Franklin and Marshall.
You may have a geographic advantage over students from the east coast and middle atlantic states. The reason for this is that Franklin and Marshall wants to boast that they are a geographically diverse college and they may not get a large number of students from Little Rock.
Example Three: You live in Scarsdale, NY and you want to attend University of California, Berkeley.
If you can afford out of state tuition, you may have a slight advantage over CA students as CA has increased the percentage of students it accepts from out of state to increase revenue.
I think you can see that your geographic location, can be a positive or a negative depending on where you live and where you want to attend college.