You cannot say at all that the person must live there or nearby......only that they are to be found for some reson or another in the area more than once.
People can end up in "places where they do not live", but when it come to a serial killing career, the perpetrators tend more often than not to operate close to their bolt-hole in the instances where crimes are closely clustered and the offender lacks readily available private transport. It doesn't matter what era we're investigating, I can't think of a single example of a "commuter" serial killer whose crimes are within walkable distance of eachother. If the reverse was true, then the likes of Rossmo and Canter would be making suggestions along the lines that he may have been a bank clerk who lived three miles away, rather than somewhere central to the crime locale.
Just out of the area or off the streets in that area. At any rate, one could hang out on the streets all night as unless you were seen, there is no way to prove you did anything.
All the best,
Ben

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