When you drive through America, you’ll often notice a wide range of places to live, from vibrant cities to quaint rural towns, and everything in between.
However, many people are drawn to the “in between.” A recent study by the personal finance company WalletHub defines a small city as one with a population “between 25,000 and 100,000.”
WalletHub analyzed more than 1,300 small U.S. cities across 45 categories of livability, including affordability, education, health, and other key factors.
Yet, there was one place in all of America that topped the list—and it’s less than a four-hour drive from Chicago.
Carmel, Indiana, is the best small city in America
Carmel, located north of Indianapolis, ranks highly in various areas. Economically, Carmel boasts an unemployment rate of just 3.3%, one of the lowest in the country. The median annual household income in the area is nearly $135,000, and residents enjoy a relatively low cost of rent, accounting for about 14% of the median household income, which is the 46th lowest percentage in the country.
Low unemployment and high incomes have enabled people in Carmel to achieve 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.
Where Carmel ranks:
- The 11th-lowest share of adults in fair or poor health
- The 21st-lowest premature death rate in the country
- The third-lowest pedestrian fatality rate
- The 70th-lowest violent crime rate
A guide to Carmel, Indiana
One of the main highlights of Carmel is the Carmel Arts & Design District, located in the heart of Old Town. Known as the Midwest’s premier arts and design destination, it is also one of Indiana’s designated Art Districts.
The district is home to interior designers, art galleries, showrooms at the Indiana Design Center, restaurants, antique stores, and a variety of specialty shops.
Another standout in Carmel is the Monon Trail. The picturesque trail replaced an old railroad that once ran straight through Carmel, and the section now known as Carmel is part of the Monon Greenway, which spans five miles from 146th Street to 96th Street.
Top 10 Small Cities in America in 2025, per WalletHub
- Carmel, Indiana
- Brookfield, Wisconsin
- Apex, North Carolina
- Lexington, Massachusetts.
- Westfield, Indiana
- Fishers, Indiana
- Brentwood, Tennessee
- Saratoga Springs, New York
- Appleton, Wisconsin
- Lehi, Utah
