Grace, i had three classmates from Indiana, one of which is a very dear friend of mine now living in michigan for residency. Another friend is doing a FP residency in Indiana. They definitely consider Indiana residents. Shoot, I had two from Utah, one from Hawaii, one from CN, several from Ohio, 4 from Mississippi, two from Missouri.... my point is they know that not every state has a DO school.
PCSOM may ask you why you prefer them over, say CCOM or KCUMB. PCSOM is a good school. A lot of the staff there is new since I graduated, but there are some good faculty still there. When you interview there, I would take a day and drive around town and the surrounding area to make sure you like it there. It is not for everyone, i just like small towns. There is actually quite a bit to do there if you like the outdoors.