All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.
If the distance between your house and the Masjid is such that when the Athaan is called with the normal voice without a loudspeaker you cannot hear it, then you are not obliged to attend the congregational prayer in the Masjid as clarified in Fatwa 89364. We believe you would not hear the Athaan at the distance you mentioned.
As for someone who is at a distance from the Masjid at which he hears the Athaan, the scholars differed about him; some of them said that he is obliged to attend the prayer in the Masjid and some said that it is only recommended for him to attend it.
Shaykh Ibn Baaz said: “You are obliged to pray with your Muslim brothers in the Masjid if you hear the call to prayer in your place of residence without a loudspeaker when there is no noise and when there is nothing that prevents someone from hearing it. If you are far away and cannot hear the call without the loudspeaker, then it is permissible for you to pray at home or with some of your neighbors.”
There is no doubt that it is better and more of a priority to try to perform the prayer in the Masjid, as this is greater in reward, and if someone is excused from going to the Masjid, then he should perform it in congregation at home and not pray alone. Praying in congregation is better than performing the prayer alone in all cases, whether at home or otherwise, and the Prophet said: "A man praying with a man is better than him praying alone, and him praying with two men is better than him praying with one man, and the more they are, the more beloved to Allaah it is.” [Ahmad, Abu Daawood and An-Nasaa’i]
For more benefit, please refer to Fataawa 82538 and 106903.
What you have heard about someone being rewarded for every step he takes to the Masjid is true. It is confirmed that the Prophet said: "If one of you performs Wudhoo' (ablution) and does it perfectly, and goes out to the Masjid having no intention except praying, and nothing brings him to the Masjid except the prayer, then with every step he takes, his rank is raised by one degree and one sin is remitted from him until he enters the Masjid. When he enters the Masjid, he is in prayer as long as what is keeping him there is the prayer. The angels keep invoking blessing on any of you so long as he remains seated in the place of his prayer, saying: 'O Allaah, forgive him, O Allaah, have mercy on him, O Allaah, accept his repentance', so long as he does not harm anyone, or undo his ablution.” [Muslim]
If one goes to the Masjid by car, then it is hoped that the reward of coming to the Masjid would be written for him as well, and he would be rewarded for the gas/petrol that he spends on his car if he seeks to get this reward from Allaah. Shaaykh Ibn ‘Uthaymeen said: “Coming to the Masjid on foot is better than coming by car because the reward for your steps will be counted for you; but if a person is excused, then it is acceptable for him to come by car and every rotation of the wheel is considered as one step because when it rotates, what has touched the ground is raised then rotates until it touches the ground again, so this is like raising one foot from the ground and then putting it down again, so if a person is excused, it is acceptable for him to come by car.”
Allaah Knows best.