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Just wondering if this is a myth or is it true that if i want to target the US market i will need to host the domain (.com) on a server based in the US.
My opinion - You don't have to because you can set site location in Google Search Console, but it's a case of every little helps. It's probably only worth worrying about if you take the algorithmic side of SEO really seriously. There are other much bigger factors in site traffic.
Sucuri have it pretty spot on with the traffic light colours imo as those are based on averages. Id certainly want a green in the area of which you were mainly targeting.