Stadtallendorf borders in the north on the town of Rauschenberg (Marburg-Biedenkopf) and the community of Gilserberg (Schwalm-Eder-Kreis), in the east on the town of Neustadt, in the southeast on the town of Kirtorf, in the south on the town of Homberg (Ohm) (both in the Vogelsbergkreis), and in the west on the towns of Amöneburg and Kirchhain (both in Marburg-Biedenkopf).
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The town is economically successful, as large factories such as Ferrero oHG mbH (confectionery), Fritz Winter GmbH & Co. KG (engine foundry), Hoppe AG (grip manufacturing), and others have chosen to build here.
Neustadt borders in the north on the community of Gilserberg, in the east on the town of Schwalmstadt and the community of Willingshausen (all three in the Schwalm-Eder-Kreis), in the southeast on the community of Antrifttal, in the south on the town of Kirtorf (both in the Vogelsbergkreis), and in the west on the town of Stadtallendorf (Marburg-Biedenkopf).