Why was Bethlehem selected as the birth place for Jesus? Obviously there were other inhabitants and countries around the world where he could of been chosen to be born. What is the significance of Bethlehem? Even though Bethlehem was Joseph's ancestral home and they had to return due to Roman taxation policies was there any other significance other than the fact Micah prophesied this?
Why Bethlehem? Yes, God could have chosen anywhere for the Messiah to be born, but as prophesied in Micah 5:2, God chose Bethlehem. And Jesus was born there, first and foremost, to fulfill Scripture.
Are there reasons God chose Bethlehem? Perhaps it speaks to Jesus' humility. He wasn't born in the biggest or most famous city – He was born in a relatively obscure place. This is in the same spirit as God choosing Mary – an unknown, humble girl. God shows His glory often though what looks like humble and unimportant things to us.
Perhaps this also speaks to the meaning of “Bethlehem”. The name means “house of bread”, and bread was pretty significant in Bible times. It was a staple of the diet and used in Temple worship. It was the symbol of God's presence and provision. This could very well be a nod to Jesus being the “bread of life”, the true Bread from heaven. (see John 6:35).