Hillsborough attracts lots of affluent Northern California commuters. San Francisco is an easy 35-minute drive away -- with no bottlenecked bridges to cross.
It's also a reasonable trip to Silicon Valley, Stanford University, UC San Francisco Medical Center and Fortune 500 companies like Oracle, Visa, and Facebook.
Hillsborough caters to all this well-paid talent with big homes (zoning laws require houses to be at least 2,500 square feet) and strong schools (its elementary schools rate third in the state), although there is no high school here. There are no commercial businesses within town limits, no sidewalks, and few stoplights and even streetlights, adding to the rural feel of the place.Subscribe to Money Magazine
America's best small towns are not only thriving economically, they've also got all you could want in a place to raise a family.