This document analyzes distance-based location management schemes (DBLMS) in wireless communication networks. A Markov chain mobility model is developed to describe a mobile terminal's movement in a 2D cellular structure. Classical renewal theory is used to analyze the expected number of paging area boundary crossings and cost of the distance-based location update method for two different call handling models. The analysis makes it possible to find the optimal distance threshold that minimizes the total cost of location management in a DBLMS.