location does matter - I speak coming from a company dealing with an employee GOING remote here.
Apparently there are standard zones for how standard of living is calculated, and this is common across all organizations, companies, industrial sectors, etc. When I first heard of this "standard zonage" I was suspicious, and then a few old managers I'm good friends with, confirmed that this is commonly referenced and completely accepted as part of figuring out payscale.
Depending on where you live, company will have to *count themselves as having a base in that location or pay some kind of state tax associated with having employees located there, and *determine what is an acceptable paygrade for you for that zone.
Example: SF Bay area, NYC, etc. are higher paid zones. London, even higher, apparently. Arkansas.... not so much.
Very common for someone to be still well compensated *for their region* as a dev, but obviously not make what you can in Bay Area. I would say, accept that you will not make what you would in the Bay. Be glad you can do what you do, remotely, and that you are *well* compensated for it. Try for the companies that don't scale, or are willing to work with you like a human being that contributes value to the company and is willing to pay for that value (what a concept!) - but don't cut yourself short in your search because of any kind of expectation of getting that.