0: https://manifold.net/doc/mfd8/zip_codes_are_not_areas.htm
They don't represent geography at all, they represent the organizational structure of USPS.
They work by making the address on a letter almost meaningless. For some smaller population zip codes you can practically just put the name and zip code down and achieve delivery.
A 5+4 formatted ZIP code maps to just a handful of addresses. In cities with larger populations, the +4 could map to a single building, and in more sparely populated place, it might include houses on a handful of roads.
For smaller datasets, ZIP+4 might as well be a unique household identifier. I just checked a 10 million address database and 60% of entries had a unique ZIP+4, so one other bit of PII would be enough to be a 99.99% unique identifier per person.
With a geo-coded ZIP+4 database, you could locate people with a precision that's proportional to the population density of their region.