Hi SIMPleChick,
Meat rabbit major challenges--very good question!
Giving your rabbits the ideal set-up will be a challenge. Rabbits are not very heat tolerant, predator tolerant or fright tolerant, so, you need to address all these areas when creating their living space.
HEAT: No direct sun--and, even in shade, 80 F is about the limit before they become stressed and risk permanent physical damage. You can use frozen 2-liter soda bottles, adequate shade, fans or air conditioning to help them through the heat. Keep a thermometer at their location so that you can monitor and take action as needed. I used a shady location, tarps, soda bottles and a fan to keep mine healthy.
PREDATOR: City or country makes no difference--there are predators everywhere. Dogs, cats, raccoons, weasels, possums, coyotes, foxes, hawks, owls, bobcats, cougars--all of these regard rabbits as prey and will act accordingly if given the opportunity. Consider locating your bunnies in a secure building. If you do house them outdoors, make sure their enclosure is predator-proof. That means hardware cloth rather than chicken wire, and think in terms of gnawing, digging and scratching to get at those tender morsels!
FRIGHT: Many things that we may take in stride are frightening to a rabbit--including loud noises, a barking dog, slamming doors, a cat staring at the rabbit from inches away, hawk landing on the cage, and rough or clumsy handling. Breeding rabbits do best in a cool, quiet, shady environment removed from any disturbances--much like chickens. Yes, rabbits may survive in stressful surroundings--but they are less likely to breed or raise their young properly.
DISEASES: The one disease you will hear mentioned is tularemia, mostly a concern in wild populations. Other than that, there is always a concern with hygiene when you butcher any animal. Too much information to go into detail here, but check out resources on the Net for guidelines.
CITY LIMITS: First, check your city's laws on keeping livestock. You might be able to pass the rabbits off as "pets," depending on your area, your neighbors and your set-up. Here are a couple of threads on the topic on other forums:
http://www.permies.com/t/6753/rabbits/Rules-regulations-raising-rabbits
http://www.homesteadingtoday.com/livestock-forums/rabbits/351226-selling-rabbit-meat.html
Be very careful if you are going to get into raising rabbits to supply others with meat--as the second link above points out, now you are talking a whole different critter!
MISCELLANEOUS: Rabbit manure is wonderful and can be used directly on the garden--no composting necessary. However, there is an odor, and it does pile up rapidly. This may be an important consideration if you have nearby neighbors.
Consider a "hanging cage" system to aid in both predator-proofing and waste maintenance. I was very happy with Klubertanz:
http://www.klubertanz.com/
For butchering, look at the Rabbit Wringer:
http://www.therabbitwringer.com/
I now use a "wringer" made by my hubby for chickens as well. Used it for many, many rabbits and it was indeed a merciful way to do it.
Consider a water system other than the water bottles I used--seems like I was forever refilling, even with the 2-quart jumbo sizes!
Consider starting with a trio--that is, two does and a buck. Add does as you seek to expand--one buck can service several with no problem.
Are you discouraged or overwhelmed after reading all this? Don't be. Rabbits are enjoyable to raise, and fairly simple, once you meet their needs. I raised them for a couple of years and still have lots of good meat in the freezer. The only reason I stopped is that I have a full-time job, and having both rabbits and chickens (in addition to other animals) didn't allow me to enjoy them beyond meeting their basic needs.