What is the significance of Bethlehem as the place of Jesus birth? The New Testament records that Jesus was born in Bethlehem of Judea.  In fact, this was a fulfillment of prophecy, as Matthew records:


  Now after Jesus was born in Bethlehem of Judea in the days of
  Herod the king, behold, wise men from the east came to Jerusalem, 2
  saying, “Where is he who has been born king of the Jews? For we saw
  his star when it rose and have come to worship him.” 3 When Herod the
  king heard this, he was troubled, and all Jerusalem with him; 4 and
  assembling all the chief priests and scribes of the people, he
  inquired of them where the Christ was to be born. 5 They told him, “In
  Bethlehem of Judea, for so it is written by the prophet:
  
  6 “‘And you, O Bethlehem, in the land of Judah,
      are by no means least among the rulers of Judah; for from you shall come a ruler
      who will shepherd my people Israel.’”  Matthew 2:1-6 ESV


So, what is the significance of Bethlehem and why did God choose this city, and not any of the other cities in Israel, for the birthplace of the Messiah?  It seems that it should be something more than just a random selection.
It is prophesied by Micah 5:2.

Perhaps you're wondering why Micah would prophesy that the Messiah would be born in Bethlehem in the first place.

Well, "Bethlehem" is from the Hebrew בית לחם (beit-lechem), which literally means "house of bread." The Messiah is the "bread of life" (John 6:35). I say, what better city for him to be born?


  And Jesus said to them, "I am the bread of life. He who comes to me will never hunger, and he who believes in me will never thirst."