They use many rooms to shoot multiple scenes in one day. A day rate is cheaper because it's a bulk time rate. As for if the location matters, yes it does. You don't need a zillion dollar home, but you do want an aesthetically pleasing set. It's the background that frames the girl. Nothing worse than a beautiful girl in a poorly lit crappy room to spoil the stroke value. If you're going for purposely trash ambiance, you'd better have quite an eye for the right kind of tacky and know how to light.