It depends.
Usually an IP tracer can go to the ISP tower closest to your residence. If someone were to trace my IP they'd get a tower about 3 miles from my house. I live in a fairly well populated area, so finding my exact home would not be easy.
Regular users have zero access to IPs, only Mods/Admin can see those.
However there are some, particularly those used by upper government investigators, that can zero in on your building. If it's a house they have your exact address, if it's an apartment building, not quite.
Now when you think of a site the size of Facebook, with millions of users, it would be easier to look up someone through their local telephone book or city directory, IPs would be inadequate.