A recently released report from WalletHub ranked four Indiana small cities among the best in the U.S. to live in.

Carmel was listed as the third-best small city to live in. A low unemployment rate (2.90%) and high annual income ($142,000) were contributing factors to the high ranking. It also has the 41st-lowest cost of rent as a share of median household income, at nearly 15%, according to WalletHub.

Other Indiana cities that made the top 20 list included Westfield (6), Fishers (10), and Zionsville (17).

WalletHub’s 2026 Best Small Cities in America report compared over 1,300 U.S. cities based on dozens of key indicators of livability.

“The study was based on 45 different metrics, including cost of living, homeownership rate, school system quality, and number of attractions,” said WalletHub analyst Chip Lupo.

The five key dimensions compared in the report were affordability, economic health, education and health, quality of life, and safety.