Wallethub: Best Small Cities in America 

Not everyone craves the bright lights and crowded spaces of big cities. In fact, almost half of Americans (47%) say they would prefer to live in the suburbs, compared to 24% for urban areas and 23% for rural communities. Small-city life can be best for those who appreciate more wiggle room, fewer degrees of separation and shorter commutes, to name just a few of its advantages. Granted, these little urban areas demand some tradeoffs, too, such as fewer restaurant options or shorter business hours. 

One of the best perks of living in a city with a relatively small population is affordability. According to the Economic Policy Institute, the cost of living for a two-parent, two-child family in Hanford, California, for instance, would be $8,013 per month, compared with more than double at $17,621 for the same family in San Francisco. 

No two small cities are made equal, though, so which ones outshine the rest? To find out, WalletHub compared more than 1,300 U.S. cities with populations between 25,000 and 100,000 based on 45 key indicators of livability. They range from housing costs to school-system quality to restaurants per capita.  

“Moving from a bustling metropolis to a small city could drastically cut down your cost of living. On top of that, the best small cities offer strong job markets, high-quality education, good health care, safe living conditions and plenty of local flair to help you achieve a high quality of life. While small cities may lack some advantages of big cities, like robust public transportation systems, they make up for these shortcomings in other areas.”

Chip Lupo, WalletHub Analyst

In-Depth Look at the Best Small Cities

Carmel, IN

Carmel, IN, is the best small city to live in, due in part to strong economic factors. Carmel  has one of the lowest unemployment rates in the country, at 3.30%. It also has the 46th-lowest cost of rent as a share of median household income, at around 14%. On top of that, the median annual household income is nearly $135,000, 125th-highest out of the more than 1,300 cities in our study.

Low unemployment and high incomes have helped people in Carmel obtain high credit scores. The median credit score in the city is 775, which is the 20th-highest in the country and well into the excellent credit range. 

Finally, Carmel is a good place for residents’ health and safety. It has the 11th-lowest share of adults in fair or poor health, along with the 21st-lowest premature death rate in the country. When it comes to safety, it has the third-lowest pedestrian fatality rate and the 70th-lowest violent crime rate.

Brookfield, WI

Brookfield, WI, is the second-best small city to live in, and it has a 2.7% unemployment rate, one of the lowest in the country. In addition, only 3.5% of the city’s population lives in poverty, the 14th-lowest percentage among the more than 1,300 cities in our study. 

Brookfield residents also have the 110th-highest homeownership rate in the country, along with the 10th-best median credit score. At 782, the median credit score is far into the excellent credit range.

On top of good economic conditions, Brookfield residents enjoy good health. The city has the 21st-lowest share of residents in fair or poor health, and over 98% of the population has health insurance, the 12th-highest percentage in the nation. Brookfield also has the 36th-lowest percentage of adults with no leisure time. Having adequate leisure time is beneficial for one’s mental health.

Finally, Brookfield demonstrates safety with the 128th-lowest violent crime rate and 17th-lowest pedestrian fatality rate in the country.

Apex, NC

Apex, NC, is the third-best small city to live in, boasting the 12th-lowest unemployment rate and 56th-lowest violent crime rate among the more than 1,300 cities in our study. It also performs well economically, with the 20th-highest employment growth and the 5th-lowest share of residents living below the poverty line. 

In addition, Apex has the 112th-highest median annual household incomes in the country, at over $138,000. Residents also have the 27th-highest median credit score, at 770, showing that people in the city are doing very well financially. 

To top things off, Apex has the 32nd-best school systems in the country and the 14th-highest share of people with a high school degree or higher. And when it comes to health and fitness, Apex has the 27th-lowest share of adults in poor or fair health, and the 162nd-most fitness centers per capita. 

Methodology

In order to determine the best small cities in America, WalletHub compared 1,318 cities across five key dimensions: 1) Affordability, 2) Economic Health, 3) Education & Health, 4) Quality of Life and 5) Safety. For our sample, we selected cities with population sizes between 25,000 and 100,000 and considered only the “city proper” in each case, excluding cities in the surrounding metro area.

We then evaluated the five dimensions using 45 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for small-city residents. Data for metrics marked with an asterisk (*) were available at the state level only. For metrics marked with two asterisks (**), we calculated population size using the square root of the population in order to avoid overcompensating for minor differences across cities.Finally, we determined each city’s weighted average across