It'll vary depending on the density of the population, amount of commercial establishments, etc. But, a good ball-park starting figure is 50,000 people. That kind of population should hold enough commercial businesses to both display the newsletter and advertise.
If you have the time to open a few editions at once it would be a good idea. That way you can increase the potential number of ad sales. The only downside is that you would have 3 different areas to print for, and that would increase your overhead.
To combat that printing cost, the best way is to not print 3 unique newsletters in the beginning. Instead, just print a generic newsletter that you can use in all 3 areas. Odds are that you won't have any conflicting ads this early. And, most printing companies will charge much less to print 3000 copies of the same file, versus 1000 copies of 3 different files.
As your editions fill up, and become profitable, you can continue to expand into new territories, and print individual editions.
Hope that helps.
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