"In the cut" primarily refers to a location that is secluded or hard to find. It can be used in both urban and rural areas. In a metropolitan setting, a house or store that’s “back in the cut” would be in a place off the main drag, perhaps in an older or run-down neighborhood. Likewise, in the country when someone’s house is “out in the cut” it generally means that person’s house is off the map (far away from town, gravel roads, etc.)
Livin “down in the cut” isn’t necessarily a bad thing. You can throw some bangin-assed parties when there’s nobody else around to complain about em.
Guy1 “Trey’s party was off the hook!”
Guy2 “Really, where was it? I couldn’t find the place...”
Guy1 “It’s back in the cut, on Bent Street”