Created to assist its readers in making the best possible decision when selecting where to settle down, the list utilizes data from the Department of Commerce, U.S. Census Bureau, Bureau for Economic Analysis and the Federal Reserve as well as state and local sources. For its 2026-2027 list U.S. News looked at 250 cities that were then dividing into the best small, medium and large cities overall and in each state.
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Cities were judged across four livability indexes: value, quality of life, desirability and job market – weighed by importance as determined by surveying around 500 Americans. Texas cities overall scored high on affordability according to the news release. As Erika Giovanetti, the consumer lending analyst for U.S. News explained:
"As prices of everyday goods continue to rise, consumers are considering affordability as a top priority when choosing a place to live."
According to the report, Austin dropped into the No. 5 spot on this year’s list as Fort Worth moved up to No. 3 due to its booming prosperity and lower cost of living when compared to similarly sized metro areas.