One thing to note with ad location targeting, is that there is a minimum of a 15-mile radius required, targeting cannot be done specifically by zip code.
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When you're choosing your ad targeting, you have two options:

You can 'drop a pin': this is the preferred option as users can see exactly what areas they are targeting. You can click(hold) and drag the blue circle to move the targeting radius.

You can also target by location. Each location you pick will create a 15mile radius around that, so you may just wish to stick to one location to target for home valuation ads. Multiple locations that overlap can cause the audience algorithm to be less than successful.

Instructional Video