Geography here is a legal boundary, so draw the campaigns on it
A radius around the District crosses two state lines and a dozen local governments before it reaches twenty miles.
Split the account at least three ways: the District, suburban Maryland, and Northern Virginia. If you take work in Montgomery County but not Prince George's, that is a fourth split. Each gets its own budget, its own ad copy and its own destination page naming the jurisdiction.
Use location targeting set to presence rather than interest as the default, then check it. An owner researching from a hotel in Rosslyn about a house in Bethesda will confuse any geographic signal, which is why the landing page and the call script have to establish jurisdiction independently.
Separate budgets also protect you from your own averages. Fairfax County usually behaves differently from Capitol Hill on cost per click and on close rate, and a single campaign will spend the good jurisdiction's budget on the weak one.
Where you do not hold the license or do not want the work, exclude the location outright. Paying to advertise into Prince George's County when you decline Prince George's County is a common and expensive mistake.