Hello Joe, the way it works is like this. In listing packages, users can choose to list as a standard or featured listing. they can also when adding a listing choose to select a location if that has been set up, so you do not need a specific package for this, but just to have those options to set up.
Now because you can not choose to post to the front page, you add listing boxes to your front page, and because you wanted featured listings you could create a featured listings box type and add it to the front page, this will then show featured listings on the home page as you want.
To then display by location you then yes have geolocation active for the home page and set up in as in the video above.
The end result will be that based on geolocation they will see featured ads on the home page in relation to thier location.
If you look at my home page I have the top 4 listings as featured listing box and the next 8 are the latest listings box with both set to avoid duplicates. In my case, I do not have a geolocation set as I do not want it on my home page/site and for my purposes, I have a filter to do that work.
I will do quick video to show you the settings. See Here > https://screencast-o-matic.com/watch/crfYhXVnRG8
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