The Hidden Gem Formula: How to Find America’s Best Places Before Everyone Else Does

Hidden gem destinations don’t stay secret by chance. Learn the 10 data-backed signals — IRS migration files, bookstore density, housing velocity — that reveal America’s next great town before crowds arrive.


There’s a moment every seasoned traveler knows. You’re somewhere extraordinary — a town with electric energy, gorgeous bones, no tour buses, and a restaurant where the chef is cooking like she has something to prove — and you think: How did I find this? And why doesn’t anyone else know about it yet?

That moment isn’t luck. It’s a method.

We’ve spent years obsessing over this question at AmeriCurious, and what we’ve found is that “hidden gem” destinations don’t stay hidden by accident. They share fingerprints — patterns in data, architecture, migration numbers, and civic culture that signal a place is either ascending quietly or has been chronically underrated. The algorithm for a great American place that hasn’t been discovered yet is surprisingly learnable.

This is that algorithm.

What follows isn’t a list of places. It’s the framework we actually use to find them. Master it, and you’ll never need a “Top 10 Underrated Towns” listicle again. You’ll be generating your own, years ahead of the crowd.

Signal #1: Follow the IRS Data That Nobody Reads

Most people who talk about migration trends cite the same vague statistics: people are leaving California, moving to Texas, fleeing New York. That’s noise. The signal is buried several layers deeper, in a dataset that is publicly available, freely searchable, and almost entirely ignored by travelers.

The IRS Statistics of Income (SOI) Migration Data is a federal dataset that tracks year-over-year changes in tax return filing addresses — meaning it records when someone files their taxes from a different county or state than the previous year. Migration data for the United States is based on year-to-year address changes reported on individual income tax returns filed with the IRS, presenting migration patterns by state or by county for the entire United States, tracking both inflows — new residents and where they came from — and outflows — where residents went when they left.

The state-level story is already well-publicized. For the second year in a row, South Carolina saw the greatest population growth attributable to net inbound domestic migration (1.26 percent), followed by Idaho, Delaware, North Carolina, and Tennessee. But that tells you where the herd is heading — which is precisely where you don’t want to go if you want to discover somewhere before the crowds arrive.

The gold is at the county level.

Here’s the move: filter the IRS data for small, non-metropolitan counties that show a sudden uptick in inbound filings from high-income ZIP codes in expensive coastal metros. You’re not looking for absolute population growth. You’re looking for a change in the character of who’s arriving. When professionals with high adjusted gross incomes start quietly relocating to a county that hasn’t historically attracted them, that’s a flare shot into the sky. Average Adjusted Gross Income (AGI) reflects the income profile of interstate movers — comparing inbound versus outbound AGI reveals whether a state is attracting higher or lower earners.

Cross-reference this with the USDA Economic Research Service’s Atlas of Rural and Small-Town America, a free interactive mapping tool that layers over 60 county-level indicators — employment trends, population change, income shifts, and industry composition. The Atlas covers people (demographic data including age, race, ethnicity, migration and immigration, education, household size, and family composition) and jobs (economic data from the Bureau of Labor Statistics including information on employment trends, unemployment, and industrial composition).

How to use it: Cross-reference counties with a high USDA Natural Amenities score against counties currently showing modest but accelerating IRS in-migration from urban areas. The USDA Natural Amenities Scale is a measure of the physical characteristics of a county area that enhance the location as a place to live, constructed by combining six measures of climate, topography, and water area that reflect environmental qualities most people prefer: warm winters, winter sun, temperate summers, low summer humidity, topographic variation, and water area. Counties that score high on natural amenities but have not yet appeared in mainstream travel media are your targets.

What you’re doing, essentially, is watching where smart people with options are quietly voting with their U-Haul trucks.

Signal #2: Track Where the Remote Work Wave Is Still Cresting

The pandemic-era migration story has been told and retold, but most coverage focuses on the obvious destinations: Bozeman, Asheville, Bend. Those places are now expensive and crowded. What hasn’t been adequately tracked is the secondary and tertiary ripple — the smaller towns within or adjacent to the first wave, now receiving their own influx.

An estimated 291,400 people migrated from other areas into America’s small towns and rural areas in 2023, which University of Virginia demographer Hamilton Lombard defines as metropolitan areas with 250,000 people or fewer — exceeding net migration into larger areas for the first time since at least the 1970s. “With a third of workdays being done remotely in 2023, Americans have more geographic flexibility and have been increasingly willing to move far from large population centers if their destination offers a good quality of life,” Lombard noted.

Areas with more than four million people were the big losers in this migration period, shedding hundreds of thousands of residents. That population had to go somewhere. A large portion went to already-known destinations. But a meaningful slice went further — to towns with no infrastructure for tourism, no boutique hotel, no Bon Appétit profile. Those are your prospects.

The metro sector’s net domestic migration loss of 119,205 between 2024 and 2025 confirms a trend that has been building since before the pandemic: Americans with options are increasingly choosing to leave the country’s largest urban counties for smaller, more affordable places.

The methodology: Look for small towns near — but not adjacent to — the already-discovered remote-work destinations. If Asheville is saturated, start looking at towns 45 to 90 minutes outside it that have broadband access, reasonable housing costs, and at least one civic anchor (a library, a farmers market, a community theater). The people who couldn’t afford the first wave are often making the second wave happen in places that have none of the prior destination’s baggage.

Signal #3: Read the Real Estate Market Like a Seismograph

Housing data is one of the most reliable early-warning systems for a place on the verge of discovery — if you know what you’re looking for. Most people use real estate data to decide whether to buy a house. We use it to decide where to point a camera.

The key signal isn’t whether a town is already expensive. It’s the velocity of price change relative to prior stagnation. A place where median home values have been flat for a decade and are now moving — even modestly — is more interesting than a place that has always been pricey.

Zillow’s annual Hottest Housing Markets forecast is particularly useful for this purpose. Zillow bases its rankings on an analysis of forecasted home value growth, recent housing market velocity, projected changes in the labor market, home construction activity, and number of homeowner households. Its 2025 list — Buffalo, Indianapolis, Providence, Hartford, Philadelphia, St. Louis, Charlotte, Kansas City, Richmond, and Salt Lake City — includes several cities that travel media has not yet caught up with.

Buffalo, for instance, was the top-ranked market for two consecutive years. Buffalo is seeing the kind of demand that turns heads, especially when you factor in how affordable it still is. With a median home value around $239,000 and homes selling in just 12 days, inventory can’t keep up with buyers moving in for jobs in healthcare and education. Tourism to Buffalo has not caught up to what the housing market already knows.

Buffalo has seen more than $1 billion in economic development over the past decade, and it’s starting to pay off. Cities like Rochester, Syracuse, and Hartford continue to be the top sellers’ markets, perhaps because they’ve been undervalued for so long.

The methodology: Check Zillow’s Home Value Index for mid-sized cities and small metros. Filter for places where home values have been below the national median for a sustained period but are now showing consistent positive movement. Then check whether travel coverage of that city is lagging the economic data by years. That gap is your window.

Signal #4: Independent Bookstores as Cultural Canaries

This one sounds soft. It isn’t.

Independent bookstores are among the most reliable leading indicators of a neighborhood or town that has authentic cultural vitality — and they’re one of the hardest things to fake. A Starbucks can move anywhere. A great independent bookstore requires a community of readers, a landlord willing to work with a low-margin business, and an owner committed enough to stay. When one takes root and survives, it tells you something real about the people who live there.

The numbers behind this trend have become impossible to ignore. Data from the American Booksellers Association shows that U.S. independent bookstores increased 70% since 2020, from 1,916 to 3,218. Independent bookstores are more than retail spaces — ABA describes them as “experiences, community hubs and safe spaces for readers of all ages.”

In 2025 alone, there were 422 independent bookstore openings across the U.S., representing a 24% increase from 2024, according to the American Booksellers Association. And critically, many of these are opening not in major cities, but in smaller communities that previously had none.

The ABA’s 2024 annual report revealed that ABA membership grew by 18% and for the third consecutive year over 200 independent bookstores opened in the U.S. The diversity of those stores directly reflects the diversity of readers and communities, with 60 BIPOC-owned stores, 21 Black-owned stores, 55 pop-ups and 12 mobile stores.

A new independent bookstore in a town that didn’t previously have one is a signal worth investigating. It means someone believed enough in the community’s long-term cultural health to stake a business on it. It also means there are people living there who will sustain it.

The methodology: Use the ABA’s member directory at bookweb.org to search for recently opened stores in towns under 50,000 people. Cross-reference with towns that show up in the IRS and USDA migration data. When a small town suddenly has an indie bookstore with an active events calendar — author readings, community discussions, local zines for sale — you’ve found a place worth visiting now, before everyone else figures out it exists.

Bonus signal: look for towns where the bookstore doubles as a community hub (hosting book clubs, stocking local authors, partnering with the library). That kind of civic integration is a marker of genuine community cohesion, not a performance of it.

Signal #5: The Post-Industrial Inflection Point

When a factory closed or an industry left a town, it did something painful and, in retrospect, preservationist: it froze the architecture. The mill didn’t get torn down for a parking garage. The downtown commercial block stayed intact because no one could afford to demolish it. The grain elevator became an anachronism instead of a casualty.

Decades later, those towns have exactly what travelers are increasingly desperate for: authentic built fabric, low real estate prices, and the spatial bones of a real place that was once economically vibrant.

Throughout the American industrial heartland, hundreds of small factory towns along rivers and railroad lines have essentially been abandoned. The factories that once employed thousands of workers closed forty years ago, resulting in vacant industrial and commercial buildings, contaminated soils, deteriorated housing stock, and population losses of more than 50 percent. However, many large post-industrial cities in the United States, such as Pittsburgh, have transformed themselves over the last forty years.

The key is identifying towns that have hit the inflection point — where the bottom has been reached, where a few early-adopter residents have started renovating, and where the downtown is about to tip from “stoic ruin” to “emerging scene” — without yet being profiled in the New York Times Travel section.

Buffalo embarked on a path of revitalization, as the state of New York channeled substantial investments into the city. At the grassroots level, entrepreneurs ventured into small businesses such as breweries, restaurants, and housing projects, turning previously overlooked neighborhoods into vibrant pockets fueling the city’s revival.

Smaller examples of this transformation are happening in towns that don’t have Buffalo’s infrastructure or media attention. They are findable.

The methodology:

  1. Use the National Register of Historic Places database (nps.gov/nationalregister) to identify towns with a high density of listed properties — particularly industrial or commercial structures — relative to population size. The National Register of Historic Places currently lists 87,233 places, with over 14,116 designated districts. The official list is administered by the National Park Service to help identify, evaluate, and protect America’s historic and archaeological resources. A small town with an unusually large number of listed properties often signals a place that has preserved its built environment because economic forces never swept it away.
  2. Look for towns where manufacturing employment peaked before 1970 and declined sharply. These places are old enough that their architecture is genuinely historical, and depressed enough that the bones haven’t been redeveloped away.
  3. Cross-reference with current Airbnb or VRBO listing density. If a post-industrial town with a strong National Register footprint has fewer than 15 short-term rental listings, you’re almost certainly early.

Signal #6: Unusual Architecture Concentrations

Every architectural style in America was once the pride of somewhere. Victorian Italianate mansions, Craftsman bungalows, Art Deco theaters, Prairie-style civic buildings — they were built when a specific town had money, ambition, and a local patron class. When the economy of a place declined, the buildings frequently survived. And when travelers arrive, they discover something that feels like a movie set built at full scale and left standing.

The most useful source for this kind of discovery is, again, the National Register. But you can also mine it differently: search not for individual buildings but for historic districts, and specifically filter for districts with the word “commercial,” “downtown,” or “industrial” in the name in counties with populations under 75,000. A commercial historic district in a small county means there’s a walkable main street with architectural coherence that has somehow survived.

A few archetypes worth knowing:

The Art Deco Desert Town. Several small cities in the American Southwest and Great Plains contain surprising concentrations of Art Deco architecture built during the oil or mining booms of the 1920s and 1930s. Tulsa’s skyline is a celebration of Art Deco grandeur and is often cited as one of the finest collections in the world — but Tulsa is merely the most-known example. Towns like Bartlesville, Oklahoma (home to Frank Lloyd Wright’s only skyscraper), or Galena, Illinois, offer similar architectural coherence at a fraction of the visitor traffic. Galena is a showcase of preserved Greek Revival and Italianate buildings, most of which date back to its heyday as a lead mining hub, where each brick seems to tell a story of its own.

The Ethnic Heritage Town. Concentrations of immigrants from specific countries left architectural imprints across America that remain startlingly intact. Some areas were settled by the Germans, which indelibly marked a distinct Bavarian architectural sensibility; some by the Spanish and now boast an otherworldly culinary style. Searching for towns with strong historical ties to a specific immigrant community — Czech, Scandinavian, German, Basque — and then visiting their Main Street, their church, their cultural hall, is a reliable way to find places with visual and experiential distinctiveness that you simply won’t find in the generic American travel canon.

The Methodology: Go to the National Park Service’s NRHP database. Filter by state. Sort historic districts by county population (ascending). Any district in a county under 50,000 people, especially with an intact commercial corridor, is worth researching further. Then check Google Street View. If the main street looks like it was photographed in 1987 and nothing has changed, you may be looking at the raw material of the next Marfa.

Signal #7: The Marfa Model — One Visionary Anchor

In 1971, artist Donald Judd left New York in search of a place to create and permanently house his increasingly large-scale sculptures. He settled on the small town of Marfa, Texas. Judd, a leading figure in the minimalist art movement, was looking for a place far removed from the bustling art scene of New York City. Marfa, with its wide-open spaces and abandoned military base, fit the bill perfectly. He bought up several buildings and began creating large-scale, permanent installations.

The result is now legend. In the years since Judd’s arrival, Marfa has emerged as a mecca for art tourism, described as “an arts world station of the cross” comparable to Art Basel in Miami. Tourism has surpassed ranching as the economic driver of the region.

The Marfa model — a single visionary (an artist, a chef, an architect, a conservationist) who relocates to a small, overlooked town and builds something significant — repeats itself reliably across America, years before travel media notices it. The town of Joseph, Oregon, for example, had its transformation from a struggling logging community to an artists’ haven begin in the 1980s when bronze sculptor David Manuel established Winding River Gallery. Today, Joseph boasts the highest concentration of bronze foundries per capita in North America, with eight world-renowned studios creating museum-quality Western art.

The methodology: Search local and regional news archives (not national outlets — you want to be early) for small towns where an artist, chef, or creative institution has recently made a notable arrival. A new gallery, a relocated chef opening a serious restaurant, a residency program established in an old building — these are the seeds of the next Marfa, the next Taos, the next Marfa. At this stage, the town won’t have a hotel worth staying in, which is both a deterrent to casual tourists and a clue that you’re early. Book the best Airbnb you can find and go.

Signal #8: The Farmers Market Test

This one is simple and on-the-ground, useful when you’re narrowing a shortlist rather than doing initial research.

A thriving farmers market in a small town is a leading indicator of multiple things simultaneously: an educated, food-conscious resident base; a viable local agriculture economy; and a community infrastructure of social trust (because farmers markets require sustained volunteer organization, vendor relationships, and civic coordination to sustain).

The community’s vitality was once routinely judged by the amount of activity at the marketplace. The market was almost always located in the center of town, and many markets were housed in two-story brick buildings. Often the community’s vitality was judged by the amount of activity at the marketplace. That observation from early American community development research turns out to remain one of the most durable proxies for civic health.

More specifically: a farmers market that includes local vendors you can’t find at a regional chain — a heritage grain baker, a specialty cheesemaker, a small-batch hot sauce operation — tells you that the town has reached a threshold of economic diversity and cultural sophistication that precedes tourist attention. When you can eat extraordinarily well at a farmers market in a town with no Yelp reviews worth citing, you’ve found somewhere real.

The methodology: Use the USDA’s National Farmers Market Directory (ams.usda.gov/local-food-directories/farmersmarkets) to search for active markets in small counties you’ve identified through migration and architecture research. A market operating year-round (not just summer) in a town under 20,000 people is particularly significant.

Signal #9: The “Too Many Listings” Anomaly

Here is a counterintuitive signal that has served us well. On Airbnb, VRBO, or Hipcamp, search for a small town that appears to have more rental listings than its apparent population warrants. This is a sign that locals have already started monetizing their spare space in anticipation of visitors — which means someone in the local economy has a thesis about tourism that the broader travel media hasn’t validated yet.

This is especially powerful when the listings are unusual (converted barns, artist studios, historic homes) rather than generic. A concentration of distinctive short-term rentals is evidence that a town has character that owners believe visitors will pay to experience.

Cross-reference this with the National Register district data and the independent bookstore signal, and you will frequently find a place that is one good magazine story away from becoming famous — and which you can visit right now, in the quiet, before that story runs.

Signal #10: University Towns With Identity Beyond the University

College towns are often overlooked by travelers who assume they’re only interesting during football season. This is a significant error in judgment.

The more useful signal is a specific type of college town: one where the university’s presence has seeded a permanent creative infrastructure — galleries, music venues, literary culture, farm-to-table restaurants — that now exists independently of the student population. These towns have intellectual energy without the transience of a purely academic city. They frequently have cheap real estate relative to their quality of life. And they reliably have the kind of local institutions (the 60-year-old diner, the legendary record shop, the independent cinema) that larger cities have already priced out.

Towns like Ithaca, New York, Oberlin, Ohio, Yellow Springs, Ohio, and Iowa City, Iowa, are examples at the known end of this spectrum. The unknown end is where you want to look: small college towns in the Midwest and South where the cultural infrastructure quietly exceeds the town’s reputation.

The methodology: Use the Carnegie Classification of Institutions (carnegieclassifications.acenet.edu) to identify colleges in towns with populations under 30,000. Then search for the presence of: an independent bookstore, a local weekly paper still publishing arts coverage, a live music venue not affiliated with the university, and a restaurant with a menu that changes seasonally. The more boxes checked, the more interesting the town.

Putting It Together: The AmeriCurious Vetting Process

Here is the complete workflow we use to vet a potential hidden gem, from first signal to confirmed recommendation:

Step 1: Identify through data. Flag a county or small city through IRS migration data (county-level in-migration from high-AGI ZIP codes), USDA Atlas of Rural and Small-Town America (high natural amenities, positive economic trend), or Zillow (housing velocity accelerating from a low base).

Step 2: Test the cultural vitality signals. Check for an independent bookstore (ABA member directory), a year-round farmers market (USDA directory), and at least one distinctive local institution (theater, gallery, food destination) with an online presence suggesting regular activity.

Step 3: Verify the architectural character. Cross-reference the National Register of Historic Places for the county. Look for commercial or downtown historic districts. Review on Google Street View.

Step 4: Read the local media. Search for the town’s local newspaper or alternative weekly. Look for stories about arrivals: new businesses, new residents, new cultural institutions. The tone of local coverage often tells you whether the community is pessimistic about its future or cautiously, quietly optimistic.

Step 5: Check the gap. Google the town plus “travel” and “visit.” If the most recent travel coverage is more than three years old, or nonexistent, you are likely early. If it appeared in a major national outlet in the past 12 months, you may already be too late to find it in the unhurried state that makes hidden gems worth the trip.

Step 6: Go. No dataset validates a place the way your own feet do. Drive the main street. Eat at the most local-looking lunch spot. Talk to the person behind the counter at the bookstore. Ask them what’s changed in the past two years. The answer will tell you more than any algorithm.

A Final Note on Ethics

Hidden gems don’t stay hidden forever, and the act of writing about them — even in a framework like this one — is a form of participation in the cycle of discovery and eventual saturation. We think about this at AmeriCurious.

The best way to visit a place before it’s famous is also the best way to visit it after: spend money locally, stay in independently owned accommodations, eat at restaurants where the owner is in the kitchen, and leave the place in better condition than you found it. The towns that handle the transition from undiscovered to beloved most gracefully are the ones where early visitors treated the community as a destination with its own integrity, not a backdrop for content.

The formula above will help you find those places earlier. What you do when you get there is up to you.

Sources: IRS Statistics of Income (SOI) Migration Data (irs.gov); USDA Economic Research Service Atlas of Rural and Small-Town America (ers.usda.gov); USDA Natural Amenities Scale (ers.usda.gov); American Booksellers Association Annual Reports 2023 and 2024 (bookweb.org); Zillow Hottest Housing Markets Forecast 2025 (zillow.com); University of Virginia Demographics Research Group (Hamilton Lombard, 2024); U.S. Census Bureau Domestic Migration Estimates; National Register of Historic Places (nps.gov/nationalregister); USDA National Farmers Market Directory (ams.usda.gov).

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