Yes. You can target specific cities or defined service areas with Local Services Ads, but the exact targeting options depend on your business category and location. You can select the areas where you actually provide services rather than relying on traditional keyword targeting.
For example, a plumber could focus on a particular city and nearby areas instead of covering an entire metro region. Keeping the service area focused can help you avoid leads from locations you cannot realistically serve, although making it too narrow can also reduce lead volume.
Start with the areas where you have the strongest demand and can respond quickly, then use your lead and customer data to decide whether expanding the service area makes sense.