Traditionally (and, probably, correctly) Iscariot was interpreted as corrupted rendition of Kirya (pl. Krayot): something like "settlement(s)" in Hebrew. In Israel there are quite a lot of Krayot: Kiryat Menahem, Kiryat Motzkin etc, etc. So, Judas was "...of the settlements". He likely lived in the vicinity of Jerusalem, in one of the outlying suburbs.
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