We are planning a trip in mid-September. What is the best location to stay in Bodrum?
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That depends on what you're interested in :)
If it's your first time in Bodrum, then Bodrum Center (Bodrum Merkez) is a good bet. It's close to all of the main sights (i.e. Bodrum Castle) and has easy access to the ferry if you want to do a day trip to Kos (Greece). If you want something a little quieter, Bitez is also a good option.
If you're traveling with a group or family, Akyarlar is family-oriented and not as "bustling" as Bodrum center -- i.e. great if you want something a little calm and relaxing.
This article does a good job of explaining the different neighborhoods and has a nice map to visualize the different areas: https://letstraveltoturkiye.com/best-areas-bodrum/