The benefit is modest and real. Exact match domains carry considerably less weight than they did a decade ago, when a domain containing the search term could rank on that basis alone. That era ended deliberately, and what remains is a small contribution alongside considerably more important factors such as your business profile, your reviews, and the content on the page.
The clearer advantage is human rather than algorithmic. Somebody scanning search results or seeing your name on a vehicle learns where you operate from the address itself, which is useful for a business whose service area is the main qualifying question. For a plumber or a landscaper, that is a genuine communication benefit independent of any ranking effect.
The cost is flexibility, and it is the same trade as any descriptive name. A domain naming your city becomes awkward if you expand to the next one, and businesses that grow beyond their original area either operate under a name that misdescribes them or undertake a migration that discards accumulated visibility. That is a real cost and it arrives at a moment of success rather than difficulty.
Consider how it sounds spoken, because that is where longer domains fail. A name plus a city plus a service produces an address that is tedious to say on the phone and easy to mistype, and a substantial share of your early business will arrive through somebody repeating it verbally. The spoken test matters more than the search benefit.
Watch for the pattern that reads as low quality. A domain stuffing a service, a city, and a modifier together looks like it was chosen to game search rather than to name a business, and both readers and search systems recognise it. Something like the city plus your business name is fine. The city plus three keywords is not.
A reasonable middle position is to register the descriptive domain as well and point it at your main one. That costs very little, protects the name from somebody else taking it, and lets you use it in printed material or advertising where the descriptive version is clearer, while your actual brand remains the primary address.
Whichever you choose, keep it short enough to type without error and avoid hyphens, numbers, and unconventional endings. Those all fail the spoken test and several of them carry an association with lower quality sites regardless of what you put there.
Then remember that the domain is a minor factor in a decision that has larger ones. A business with a generic domain and forty reviews outranks one with a perfect domain and four, reliably, in the searches that produce customers.
Consider what happens if a competitor takes the descriptive version, which is the argument for registering it even if you do not use it as your primary address. The cost is a few dollars a year and it prevents somebody else occupying an address that customers might reasonably assume is yours.
Point any additional domains at your main one with a permanent redirect rather than serving separate sites, since duplicate content across two addresses splits whatever visibility you build and search systems will choose one arbitrarily rather than crediting both.
Buy the obvious misspellings if the name is easy to get wrong, which costs very little and captures traffic that would otherwise reach an error page or a competitor who noticed the gap.