"Beth-lehem Ephratah" —, or, Beth-lehem Judah; so called to distinguish it from Beth-lehem in Zebulun. It is a few miles southwest of Jerusalem. Beth-lehem means "the house of bread"; Ephratah means "fruitful": both names referring to the fertility of the region.
"Ephratah", "fruitfulness," is another name for Bethlehem, "House of bread" ; from its position it is also called Bethlehem Judah, being situated in the tribal lot of Judah, about five miles south of Jerusalem. Septuagint, κιὰ σὺ Βηθλεὲμ οῖκος Ἐφραθά τοῦ Ἐφραθά Alex.
"Be little among the thousands of Judah": is best translated, "too little to be among the thousands of Judah". Each tribe was divided into "thousands," which would be equivalent to clans, with its own head. Probably the reckoning was made of fighting men. Bethlehem, called in the text Bethlehem Ephratah for solemnity's sake, was a small place, of such slight importance as not to be named among the possessions of Judah in, or in the catalogue of, etc.
"Out of thee shall he come forth to me that is to be ruler in Israel" - Bethlehem was too small to be any part of the polity of Judah; out of her was to come forth One, who, in God's Will, was to be its Ruler. The words to Me include both of Me and to Me. Of Me, that is,, by My Power and Spirit," as Gabriel said, "The Holy Spirit shall come upon thee, and the power of the Highest shall overshadow thee, therefore also that Holy Thing which shall be born of thee, shall be called the Son of God". To Me, as God said to Samuel, "I will send thee to Jesse the Bethlehemite; for I have provided Me a king among his sons". So now, "one shall go forth thence to Me," to do My Will, to My praise and glory, to reconcile the world unto Me, to rule and be Head over the true Israel, the Church. He was to "go forth out of Bethlehem," as his native-place; as Jeremiah says, "His noble shall be from him, and his ruler shall go forth out of the midst of him" ; and Zechariah, "Out of him shall come forth the cornerstone; out of him the nail, out of him the battle-bow, out of him every ruler together". Before, Micah had said "to the tower of Edar, Ophel of the daughter of Zion, the first rule shall come to thee;" now, retaining the word, he says to Bethlehem, "out of thee shall come one to be a ruler." "The judge of Israel had been smitten;" now there should "go forth out of" the little Bethlehem, One, not to be a judge only, but a Ruler.
"To be ruler in Israel": That is, to be King and Sovereign in Israel, the whole Israel, spiritually or in reality, that Christ the Lord in the midst of them.