I agree with rotating within a "tier" of program that matches your competitiveness.
Assuming you will rotate at your home program and you already know at least one faculty member (you mentioned some research) you should look into places that they may have a good contact (i.e. Know the program director or chairman personally). Especially with slightly lower numbers, having great letters and people willing to go to bat for you will certainly go a long way. I've learned on my interviews that being interviewed by someone who knows your letter writers is a huge advantage, and for the most part they will like you before you walk through the door. So talk with some of the residents at your program and faculty if you are close enough with them, and maybe choose one school that you might consider a reach based on those recommendations.
In terms of regions to rotate in. The list that you came up with is okay. I will tell you that I am in medical school in the SE and rotated in California, Midwest, and Northeast. I literally went all over the country and this came up on my interviews and for the most part they liked or at least respected my willingness to go anywhere. The list that you have doesn't reflect that, I would consider DC, Atlanta, and Orlando all Southeast. I think you should decide whether you want a big city or not. That to me is the only real strategy in terms of location that you should consider, unless you're married or really want to be near family.
As for rotating at places that interviews ALL rotators, I don't like that strategy either. If you're not a schmuck, and serious about ortho and these rotations you will get an interview. I will tell you now that you will work 80+ hours as a rotating student, and you should expect to. First one in, last one out. You will need that type of mentality and it is exhausting, but will be worth it when you match at a great program that you know you will be happy at.
In terms of competitiveness, I think you should really consider taking Step 2. While it's not necessary, I can tell you that it is much easier to score a significantly higher score and most applicant reviewers don't really differentiate the two. Throwing down a 250 on step 2 will go a long way. I know a lot of people who improved by at least that many points and they were average students for the most part. It is a shame that because someone knew a handful of silly biochem or immunology questions they have a better shot at a residency spot, but that's the way it is in ortho today, and next year will be only more competitive.
As you stand now, the programs that I know of that you might consider:
- GW is a good choice
- Emory may be a little too competitive, and I get the impression they are a numbers place
- Orlando is again pretty competitive and you might want to consider that one "reach" program
- Atlanta MC I don't know anything about
- Allegheny General in Pittsburgh doesn't have that many rotators with a great group of faculty and residents
- Temple
- UIC is an overlooked program in Chicago and really has a great group as well
- GW
- UT Houston
These are all decent programs in great cities and in my opinion worth spending a month of your time at. And like I mentioned, look into schools that you may have some connection to through faculty, or even in your hometown and say you really want to move back by family, etc. I think with a below average application you need to go a little more outside the box when choosing aways, and should really use every tool at your disposal.