This is the 1179th most frequent Swedish word.
bo
"Bo" in Swedish means "to live" or "to reside."
In this sentence, 'bo' ('live') is used as a verb indicating residence.
Jag vill bo i Stockholm.
I want to live in Stockholm.
Here 'bo' is used in past tense 'brukade bo', referring to residing in the village in the past.
Vi brukade bo i en liten by.
We used to live in a small village.
'Bo' is again used as a verb 'to live', indicating a place where one wants to reside.