It creates an incentive to establish legal domicile in a high-rent neighborhood and then always be somewhere else, "traveling", and taking care of all your business over the network.

So you can own/lease a broom closet or pied-a-terre in Expensiveton, maybe rent it out intermittently or to a "roommate", and actually work and sleep in Cheapsville.

If home address has an impact on take-home pay, it will be gamed just as hard as all the other metrics.