This is the 5105th most frequent Portuguese word.
moram
"Moram" means "they live" or "they reside" in English.
The verb 'moram' here is used as the third person plural 'they live' in present tense, indicating the action of residing somewhere.
Eles moram em uma casa grande.
They live in a big house.
Again 'moram' is the third person plural, showing that 'the children' reside with 'their grandparents.'
As crianças moram com os avós.
The children live with their grandparents.
Here 'moram' describes the location where 'my friends' reside, combining with 'longe daqui' to indicate distance.