10 Best Small Towns to Live in America in 2027

What a "best small town" ranking actually measures

A list of the Best Small Towns to Live in America is only useful once you know what it weighs. This ranking scores five things: cost of living (mostly median home price and two-bedroom rent), job growth and employer diversity, safety, healthcare access, and quality-of-life amenities like walkable downtowns and outdoor recreation. Every place below is a currently incorporated town or small city, not a speculative development or a subdivision that does not exist yet.

The word "small" does a lot of work here. Some entries are true small towns — Traverse City, Michigan holds roughly 15,000 people in its city core. Others, like Sioux Falls, South Dakota (~210,000) or Chattanooga, Tennessee (~185,000), are small *cities* that still keep a low-crime, tight-downtown character. The common thread is a compact, human-scaled place with genuine access to nature, without moving into a major metro.

Why does this matter beyond lifestyle? Because the town you choose is effectively a bet on a local economy. A town whose employer base is one seasonal industry behaves very differently from one anchored by a research university, a hospital system, or a corporate headquarters. Places like Fayetteville (Walmart, Tyson, and J.B. Hunt in the region) or Greenville, South Carolina (BMW's largest global plant nearby, Michelin's North American headquarters in town) carry a broad tax base and diversified jobs, which protects home values and public services in a downturn. A town with rising commercial and property-tax revenue can fund the trails, schools, and hospitals that make it livable in the first place — so a healthy local revenue base is itself a livability signal, not merely an accounting footnote. When you scan these towns, read the employer list as carefully as the home price.

The 2027 shortlist and what each town is best at

Here is the specific substance behind the rankings — the numbers, employers, and trade-offs that separate these small towns from one another. Treat every figure as an approximate 2027-market range, not a fixed quote.

Bozeman, Montana (Best Overall). Population ~57,000 in the Gallatin Valley, about 90 minutes from Yellowstone's north entrance. Median home price ~$650,000; a two-bedroom rents around $1,900/month. Montana levies no state sales tax, which offsets part of the housing cost. Montana State University anchors employment alongside a growing tech and photonics cluster, and Bozeman Yellowstone International Airport runs direct flights to major hubs — rare for a town this size. Skiing at Bridger Bowl and Big Sky, trout fishing on the Madison and Gallatin, and hiking the Bridger Range are all close. The catch: it has been one of the fastest-growing micropolitan areas in the country, so prices and traffic have climbed sharply since 2020, and winter heating bills run high.

Fayetteville, Arkansas (Best Value). Population ~100,000 in the Ozarks, anchoring Northwest Arkansas alongside Bentonville. Median home price ~$330,000, with a cost of living below the national average. The University of Arkansas drives jobs, and the broader metro hosts Walmart's headquarters plus Tyson Foods and J.B. Hunt offices. A greenway network of 40-plus paved miles links the towns, and the free Crystal Bridges Museum of American Art sits in nearby Bentonville. Regional airport XNA offers direct flights to major hubs. Rarely does a town pair this much job security with this low a cost of living.

Asheville, North Carolina. Population ~94,000 in the Blue Ridge Mountains, known for arts, craft breweries, and the Biltmore Estate. Median home price ~$450,000 — high for the Southeast, pushed up by demand. The economy leans on tourism, Mission Hospital healthcare, and small business. The area rebuilt through 2025–2026 after Hurricane Helene flooding along the French Broad River, so buyers should budget added insurance for flood-prone parcels and check parcel-level flood history before closing.

Bend, Oregon. Population ~104,000 on the dry east side of the Cascades, with 300-plus days of sun a year and skiing at Mt. Bachelor. Median home price ~$640,000; Oregon has no sales tax. The economy blends outdoor-recreation brands, breweries, and a large remote-work population, with the Deschutes River running through town. Best for higher-income remote professionals and serious outdoor lovers who can absorb the price.

Sioux Falls, South Dakota. Population ~210,000 — technically the state's largest city, but low-crime and fast-growing. Median home price ~$330,000, and South Dakota levies no state income tax. Sanford Health and Avera Health anchor employment, and lender-friendly banking laws keep large Citibank and Wells Fargo operations here, giving the metro one of the lowest unemployment rates in the nation. Falls Park anchors a revitalized downtown. Winters are genuinely cold.

Traverse City, Michigan. Population ~15,000 in the city core, on Grand Traverse Bay in cherry-and-wine country. Median home price ~$400,000. Summer tourism drives the seasonal economy; year-round jobs come from Munson Healthcare and a growing tech presence. Sleeping Bear Dunes National Lakeshore is 30 minutes away. Best for boaters, food-and-wine people, and seasonal-business owners comfortable with a quiet winter.

Boise, Idaho (Eagle/Meridian fringe). The metro's smaller communities offer big-city access with a quieter feel — Eagle (~38,000) runs $700,000-plus on median homes, Meridian closer to $500,000. Micron Technology and HP anchor tech jobs, the Boise River greenbelt links the region, and Idaho levies a flat 5.695% income tax. Best for tech workers who want newer housing stock.

Chattanooga, Tennessee. Population ~185,000 on the Tennessee River. Median home price ~$340,000, and Tennessee has no state income tax. Volkswagen's only U.S. assembly plant is here, and EPB's municipal fiber — one of the country's first citywide gigabit networks — draws remote workers. The Riverwalk runs 16 miles; world-class climbing (Sunset Park, the Obed) and Ocoee River whitewater are close.

Burlington, Vermont. Population ~44,000 on Lake Champlain, the Adirondacks across the water and the Green Mountains to the east. Median home price ~$500,000; cost of living is high for the region. The University of Vermont and its medical center anchor jobs, and the Church Street Marketplace is a pedestrian downtown core. Best for academics, healthcare workers, and four-season outdoor people.

Greenville, South Carolina. Population ~72,000, a model of small-city revitalization built around the Reedy River and Falls Park. Median home price ~$340,000. BMW's largest global plant sits nearby in Spartanburg, and Michelin's North American headquarters is in town; the Swamp Rabbit Trail runs 22 miles. Best for families and auto-industry professionals.

How to run the numbers before you commit

Picking one of these best small towns is a process, not a vibe. Work it in order so a beautiful downtown does not blind you to a thin job market or a punishing tax bill.

Concretely: start with income portability, because everything downstream depends on it. If you carry a remote job, Bend or Bozeman work despite thin local labor markets; if you need a local employer, weight the university-and-hospital towns like Fayetteville, Burlington, or Sioux Falls. Next, pull the median home price and a two-bedroom rent for each finalist so you are comparing real dollars, not reputations. Then model taxes on *your* income — a retiree living on withdrawals and a $200,000 W-2 earner will rank South Dakota, Tennessee, Montana, and Oregon completely differently. Only after the money holds up do you confirm healthcare proximity, disaster risk, and finally visit — ideally a ski town in July or a tourist town in February, when the real year-round character shows.

Home prices, tax structure, and the ranges that decide affordability

Affordability on this list is a wide band, not a single number. The cheapest markets sit near $250,000 on median homes; the priciest mountain towns exceed $700,000; most cluster in the $300,000–$500,000 range. That spread means the "best" town for a $90,000 household and a $300,000 household are rarely the same place.

Tax structure often matters more than sticker price over a decade. Four flavors show up here. No state income tax: South Dakota (Sioux Falls) and Tennessee (Chattanooga) — powerful for high earners and retirees drawing down accounts. No state sales tax: Montana (Bozeman) and Oregon (Bend) — better for people who spend a lot but earn moderately. A flat income tax: Idaho at 5.695% (the Boise fringe). And higher-tax, higher-service states like Vermont (Burlington), where you pay more but get dense public amenities and a compact walkable core.

Run a simple annualized comparison. Take two finalists — say Chattanooga at ~$340,000 with no income tax, and Bend at ~$640,000 with no sales tax. On a $150,000 income, the Bend mortgage alone is far larger, and no-sales-tax savings will not close a ~$300,000 price gap. But if you are moving from a coastal metro where $640,000 buys a condo, Bend's median buys a house with Cascade access, and the math flips. The point is not which town is objectively cheapest — it is matching the tax-and-price structure to how you actually earn and spend.

Timelines matter too. Fast-growing markets (Bozeman, the Boise metro, Northwest Arkansas) move quickly; expect competition for listings, escalation clauses, and less negotiating room. Slower or more seasonal markets (Traverse City in winter, Asheville in flood-affected pockets) can offer patient buyers better terms. Budget beyond the purchase: heating in Bozeman or Burlington, flood insurance on riverfront Asheville parcels, and higher property taxes in growing towns funding new trails and schools. Those growth-funded amenities are exactly where a town's rising property-tax revenue shows up in your daily quality of life.

Where relocation buyers get it wrong

The most common mistake is buying the postcard, not the town. A gorgeous Church Street or Falls Park weekend tells you nothing about a Tuesday-in-February commute, the nearest specialist doctor, or whether your industry has more than one local employer. Specific traps to avoid:

• Ignoring employer concentration. A town riding a single seasonal or single-company economy is fragile. Favor places with three-plus anchor sectors — a university *and* a hospital *and* corporate offices, like Fayetteville or Sioux Falls.
• Miscounting taxes. People fixate on income tax and forget sales, property, and heating costs. No-income-tax South Dakota still has cold-weather utility bills; no-sales-tax Montana still has $650,000 homes. Model the whole picture on your numbers.
• Underrating disaster and climate risk. Asheville's Helene flooding, wildfire and heavy-snow seasons in mountain towns, and flood-zone insurance premiums are real line items, not footnotes.
• Overpaying in a hot market. In Bozeman or the Eagle/Meridian fringe, waiving inspections to win a bidding war can cost more than the town's premium ever will.
• Skipping the healthcare check. Small towns can mean long drives to specialists. Confirm a regional hospital system is present and in-network before you fall for the downtown.

Do the unglamorous verification first, and the emotional decision second. The towns on this list survive that scrutiny — but only if you actually run it.

A decision framework: matching the town to your life

Different priorities point to different winners among America's best small towns. Use your top constraint to route the choice rather than chasing an overall rank.

If your top constraint is value with genuine jobs, Fayetteville and Greenville lead — sub-$350,000 medians beside corporate and manufacturing anchors. If it is outdoor access and you carry a remote income, Bozeman and Bend justify their $640,000–$650,000 medians. If it is tax minimization, no-income-tax Sioux Falls and Chattanooga win, especially for retirees. If it is a healthcare or academic career, Burlington and Asheville put you next to major medical and university employers. And if it is waterfront or seasonal-business life, Traverse City on Grand Traverse Bay is the standout. There is no single best town for everyone — there is a best town for *your* constraint, and this framework points you at it fast.

Related questions

Which small town on this list is cheapest to buy a home?

Among the ranked towns, Fayetteville, Arkansas, Sioux Falls, South Dakota, Chattanooga, Tennessee, and Greenville, South Carolina all sit near $330,000–$340,000 median — the most affordable tier. The broader list's cheapest markets can dip toward $250,000, while mountain towns exceed $700,000.

Are small towns actually good for remote workers?

Yes, when internet and airport access exist. Chattanooga's EPB gigabit fiber and Bozeman's direct-flight airport are standout examples. Verify broadband speeds and the nearest airport before committing — remote work depends on both, and not every charming small town has them.

Which state taxes are most retiree-friendly here?

South Dakota (Sioux Falls) and Tennessee (Chattanooga) levy no state income tax, which is strongest for retirees drawing down accounts. Montana and Oregon have no sales tax instead. Model your specific income sources — the best structure depends on how you earn and spend.

Do these towns have real job markets or just tourism?

Most have diversified economies: universities (Fayetteville, Burlington), hospital systems (Sioux Falls, Asheville, Traverse City), and manufacturing or tech (Chattanooga's VW plant, the Boise metro's Micron and HP, Greenville's BMW-and-Michelin base). Tourism supplements rather than defines the strongest picks.

FAQ

Are these towns actually affordable for the average person? Ranges vary widely. The cheapest markets sit near $250,000 on median homes, while the priciest mountain towns exceed $700,000. Most fall in the $300,000–$500,000 band, so affordability depends heavily on your income and which town you choose.

How were these towns selected for 2027? Each was evaluated on cost of living, job growth, safety, healthcare access, and quality-of-life amenities. All are currently incorporated places with walkable downtowns, lower crime, and proximity to nature — not speculative or future developments.

Is Bozeman really the best overall despite high prices? Bozeman offers a strong job market, a real airport, and unmatched outdoor access, but its ~$650,000 median is among the highest here. It is best for buyers who can absorb the premium for those amenities, not for those chasing maximum value.

What makes Fayetteville the best value pick? A ~$330,000 median home price combined with University of Arkansas stability and a Walmart-anchored regional economy gives Fayetteville a strong cost-to-quality ratio. Its 40-plus miles of greenway and the free Crystal Bridges Museum add lifestyle value rare at that price.

Do these towns have good healthcare and schools? Both were part of the ranking criteria, but specifics vary by town. Most have regional hospitals within about 30 minutes and above-average public schools, though you should verify the exact options and specialist access for your household before moving.

Will these towns still be good places to live in 2027? The list projects current trends forward, but no one can guarantee future conditions. Climate impacts, local economic shifts, or housing-market swings could change affordability and livability. Always visit and check current data before you commit.

Sources

• U.S. Census Bureau, QuickFacts population estimates — https://www.census.gov/quickfacts
• Zillow Home Value Index and median sale-price data — https://www.zillow.com/research/data/
• U.S. News & World Report, Best Places to Live — https://realestate.usnews.com/places/rankings/best-places-to-live
• U.S. Bureau of Labor Statistics, regional employment — https://www.bls.gov/regions/
• Tax Foundation, state income and sales tax data — https://taxfoundation.org/data/
• Realtor.com market trends — https://www.realtor.com/research/
• Niche, Best Places to Live — https://www.niche.com/places-to-live/

Related on PULSE

• [The 10 Best Affordable Small Towns for Families in 2027](/knowledge/lv0038)
• [10 Best Small Towns to Retire in 2027 (Affordable, Walkable, Charming)](/knowledge/lv0015)
• [Top 10 Safest Towns in America](/knowledge/lv0077)
• [Top 10 Best Towns to Raise a Family in America](/knowledge/lv0075)
• [Top 10 Best Affordable Towns to Live in America](/knowledge/lv0072)
• [Top 10 Best Towns to Retire in America](/knowledge/lv0069)