I think if you are considering working in Chicago, you will benefit from your location since networking is the best way to look for future employment. Your program will instantly be recognized and will certainly eliminate the need to relocate. As long as the program has a decent ranking and the fit is good, which is what it sounds like, it's certainly worth placing near, if not at the top of your list.
As for myself, I have no desire to leave New York, therefore my applications this season have been within close proximity to the city. Not all programs are highly ranked, all have good fit. The connections that I have made in my past programs, both masters and bachelors, have been invaluable to my career thus far. I can only imagine the same for the doctorate. Often it's who you know....