(MONEY Magazine) – This year, in MONEY's eighth annual ranking of the livability in the 300 largest U.S. metropolitan areas, the economic action is resounding in the Southeast, roaring in the Rockies and rolling into semirural towns that were dismissed as the boondocks as recently as five years ago. There are, to be sure, a few pockets of gloom, particularly in areas hit by military cutbacks such as Norfolk, Va. and Monterey, Calif. But generally America's economic expansion stretches from sea to shining sea. The resurgence allowed seven cities to pop onto our top 10 list this year, many of them unspoiled areas where urban woes such as crime, pollution and congestion seem relatively manageable. In our seven previous Best Places to Live surveys, the top locales were usually concentrated in one or two parts of the country. This year, however, the hot spots are sprinkled like confetti all over the map. Our No. 1, Raleigh/Durham/Chapel Hill, N.C., and No. 7, Gainesville, Fla., signal the strengthening of the Southeast. Dudley Lacy, 44, a Durham architect whose family is featured on the opening pages of this article and in the box about Raleigh/Durham/Chapel Hill (at right), sums it up: ''Business is just great," he says. "A lot of advanced technology companies are moving here from Boston and California because costs are lower and the living is easier." When IBM officials recently announced plans to trim their work force by 2,000, they said Big Blue will also relocate employees from four different sites to the Raleigh area. The Midwest is represented by No. 2, Rochester, Minn. (last year's No. 1), and No. 9, Sioux Falls, S.D. Emerging growth centers of No. 3 Provo/Orem, Utah and No. 4 Salt Lake City/Ogden demonstrate the vigor of the Rocky Mountain states, where personal income grew 7.6% last year. Even recession-whipped California and Connecticut turned up a winner apiece: No. 5, San Jose, and No. 6, Stamford/Norwalk. You'd head to the Northwest for No. 8, Seattle, and to the Southwest for No. 10, Albuquerque. (The complete ranking of the 300 places, with a head-to-head comparison of the top 10, appears on page 132.) As in our earlier surveys, smaller is better. The new No. 1 and six more of our top 10 are small to mid-size cities with populations below 1 million. "We're seeing a real move toward more traditional values found in smaller cities," says Richard Loughlin, president of Century 21 Real Estate. "Home buyers want safe neighborhoods with good schools." With good tidings cutting across most regions and many businesses, this could be an excellent time to explore the path not taken. If you're a stressed-out urbanite or a corporate refugee, consider investigating the locales we illustrate here -- where job opportunities and superior medical care abound, the quality of life is a pleasure, and you can go it alone, raise a family or retire with ease. You probably won't stay alone for long, though. After MONEY named relatively unknown places No. 1 in recent years -- Rochester last year, Sioux Falls in '92 and Provo/Orem in '91 -- hordes of people explored whether our winners were right for them and many even then decided to move. In Provo, "inquiries from new businesses tripled, and we no longer solicit them," says Richard Bradford, director of the Utah Valley Economic Development Corp. In a few ways, Raleigh/Durham/Chapel Hill, a 882,500-person region in north- central North Carolina, mirrors Rochester, Minn. Both are middle-size metro areas with medical megacenters; Rochester has the Mayo Clinic, while Durham has Duke University Medical Center. (Once dubbed "Crossroads of Tobaccoland," Durham now bills itself as the "City of Medicine.") Both boast unemployment rates that are nearly half the U.S. average of 6%. In other ways, however, the area known locally as the Research Triangle is the product of a more intriguing recipe. Start with the youthful presence of its three top universities -- Duke, the University of North Carolina at Chapel Hill and North Carolina State in Raleigh. Blend in the roughly 13,550 retirees, mostly from the Northeast, clustering around Chapel Hill (pop. 42,000). Flavor with an ethnic mix that is 81% white, 12% black and has a sprinkling of Hispanics and Asians. Finally, add the 34,000 technicians, researchers, scientists and support staff working in Research Triangle Park. Situated between Durham (pop. 148,000) and the state capital of Raleigh (pop. 230,400), the 6,800-acre park houses multinational corporations such as IBM, Glaxo and Mitsubishi. Result: an area that is culturally rich and ethnically diverse, rooted in a fertile economy. Our basic survey methodology remains unchanged. We hired Beta Research, a Syosset, N.Y. polling firm, to ask a statistically valid sample of MONEY subscribers (median age: 48; median household income: $75,320) what qualities they value in a place to live. Specifically, this year, in rating the importance of 43 factors on a scale of 1 to 10, they said their top priorities were a low crime rate, clean water, clean air and plentiful doctors. (For the complete list, see page 132.) Next, with assistance from Fast Forward, a Portland, Ore. demographic consulting firm, we collected the most timely data available on each of the 300 largest U.S. metropolitan statistical areas, as defined by the U.S. Office of Management and Budget. The data come from the government as well as from private firms (housing permits from the U.S. Housing Markets report; cost-of- living figures from the American Chamber of Commerce Researchers Association; hospitals with low mortality rates from the Consumers' Guide to Hospitals; environmental rankings from The Green Index; top restaurants from The Mobil Guide; and the abundance of orchestras from Symphony magazine). Century 21 again provided an exclusive list of the current prices and property taxes for a typical three-bedroom home in each area, plus price trends from a year ago. Thirteen of this year's metro areas, all Boston and New York City suburbs, weren't ranked last year because OMB no longer classified them as stand-alone metro areas but folded them into the major city nearby. This year they returned as separate entities to our list. Finally, we awarded points to metro areas based on how well they delivered the attributes subscribers value the most. The results were then consolidated into nine broad categories: health, crime, economy, housing, education, transportation, weather, leisure, and arts and culture. With the completed rankings in hand, MONEY reporters visited the top 10 and bottom five places to personally assess attractions and drawbacks our statistics might have missed. In our ongoing effort to improve the accuracy of our rankings, we included new measures for two factors: State fiscal strength. Using an April survey of the states by the National Governors' Association and the National Association of State Budget Officers, we awarded the most points to cities in states like New Jersey, where sales or personal income taxes are likely to be cut. We gave no points to ones like Michigan, where the overall tax burden seems likely to rise. Quality of the schools. Expansion Management, an Overland Park, Kans. trade magazine for executives considering relocating their businesses, provided data on three yardsticks of school distinction: high school graduation rates, dollars spent per pupil and student/teacher ratios. The winners in those categories were Rochester, Minn., where virtually 100% of students graduate from high school, compared with 71.2% for the U.S.; Charlottesville, Va., which spends the most per pupil ($5,802, vs. the $5,193 U.S. average) and two Connecticut metro areas, New London and Stamford/Norwalk, whose pupil/teacher ratio is only 11.9, compared with the 17.2 U.S. average. Places can rise or fall fairly dramatically in our rankings from year to year for three reasons: First, the readers' priorities shift each year, boosting or lessening the weighting we give to specific factors. For instance, since sunny weather was more important this year, many places in California and Florida scored better. Second, new data sources can alter a city's ranking. Finally, the area may have improved or declined in a quantitative way. This year, the place that rose most was New London (up 181 places to 101). The reason for its escalator ride: broad-based improvement in its scores in the crime, arts, economy, education, health and housing categories. The bottom five places -- mostly clustered in the Midwest -- suffer from poor economies: No. 300, Jackson, Mich. (for details, see page 138); No. 299, Rockford, Ill. (which was No. 300 last year); No. 298, Saginaw/Bay City/ Midland, Mich.; No. 297, Flint, Mich. and No. 296, Glens Falls, N.Y. Tiny Glens Falls (pop. 15,000) in upstate New York has been hit by regional layoffs. Flint and Saginaw, with unemployment rates over 9% in May, are still struggling with an economic hangover from the auto recession. Things may be turning up for them, though. GM has called back 900 laid-off workers in Flint. And the giant automaker is investing $80 million in Saginaw to update an iron plant, preserving 370 jobs. Rockford wrestles with crime and economic problems too, but there's been a definite uptick since last year's cellar ranking. Chrysler just reopened a 3,500-person assembly plant and hired an extra 150 workers to build the popular new Neon. The city is strong on civic pride. After our '93 survey came out, the fourth-graders at Keith School wrote a 13- page report on the positive aspects of their hometown and mailed it to MONEY. Asked for a more appropriate ranking, Meghan Ferguson, 9, told a local reporter: "At least 250. It's not really a perfect city, but it's not all bad either." Meghan's right. No place is perfect.

THE TOP PLACE "It's been great for all of us" 1. Raleigh/Durham/Chapel Hill -- Area population: 882,500 -- Unemployment rate: 3.1% -- Three-bedroom house: $153,100 -- Property tax: $925 -- Top state and local income tax: 7.75% -- Sales tax: 6% -- Robberies per 100,000 people: 248 -- Annual sunny days: 220 -- For more information: 919-840-7372

When Dudley and Marian Lacy, both 44, graduated from Duke in 1972, they thought they would shake off Durham's dust permanently. But a decade later, while the couple was living in Houston -- he as an architect, she as a banker -- they had second thoughts. "We wanted different values, something more low- key," Dudley recalls. And cheaper. Marian hoped to quit her job and become a stay-at-home mother, caring for Anne, now 11, and Julia, 9. After looking at several East Coast cities, Durham won out, in part because Research Triangle Park and Raleigh, the capital city 20 miles away, offered excellent opportunities for Dudley, who specializes in corporate, government, and research and development projects. Since the Lacys moved back in 1984, Raleigh/Durham/Chapel Hill has dolled itself up. Where steakhouses and barbecue once ruled, the buzz now is about restaurants like the Magnolia Grill and Nana's, whose chefs have gained national recognition from magazine restaurant critics. Shows on their way to Broadway regularly stop first at Duke. "We saw Laughter on the 23rd Floor," says Dudley, "and Neil Simon was sitting five seats away taking notes." More important, says Marian, "Research Triangle Park is drawing in lots of different types of people, so the area feels more cosmopolitan." Furthermore, there's a genuine feeling of security. "I can bike, jog or walk Calvin ((the bassett hound)) by myself and never feel worried," says Anne. Concludes Marian: "It's been a great move for all of us." A year ago, Dudley's retired parents left Irvington, N.Y. to settle here too. Marian's mother has lived in Durham for 45 years. An astonishing range of people have found their niche in this 30-mile section of the Carolina Piedmont, nestled between the Blue Ridge Mountains and the Atlantic beaches. Chapel Hill, for example, has become a regional rock center, with two record labels, and more than 50 area clubs host local bands, including Chainsaw Kittens and Combustible Edison. Yet retirees like Herb and Rita Fussman (shown on page 130) feel at home among the rockers. Rita, 60, is going for her bachelor's in history at UNC. She and her twentyish cohorts study together, then order in pizza from Domino's. Herb plays tennis and studies at the Duke Institute for Learning in Retirement. It's true that some old-timers grouse about all the new people arriving: "We used to have easy access to Raleigh before the Yankees came pouring down and clogged the highways," says one. And natives joke that Cary, a fast- growing upscale community just west of Raleigh, is an acronym for Containment Area for Relocated Yankees. Still, the economy has room for all of those new hands and brains. Local area job growth hit a robust 4.9% over the 12 months that ended in February, according to Arizona State University's Economic Outlook Center. Little surprise, then, that U.S. Housing Markets, a quarterly trade report, has just named Raleigh/Durham/Chapel Hill the nation's fifth hottest housing market. "A year ago it took about three months to sell a home. Now a good property is gone in a week," says Century 21 Haywood Davis Realtors agent Norma Van Vleet. If you're thinking about making the area your home, it helps to be nuts about college basketball. Although there are no pro sports teams here -- the NFL's Carolina Panthers will play 135 miles away when they get going next fall -- the local Atlantic Coast Conference schools more than make up for that deficit. Carolina's Tar Heels were the '93 champs and Duke's Blue Devils won the title the two previous years. Oh, yes, a tiny minority of residents do grumble about the boringly beautiful weather. "It's never really hot or really cold, and there are no blizzards," complains young Julia Lacy. But New Yorkers, who shoveled out from 17 snowstorms last winter, might see things a bit differently.

2. Rochester, Minn. -- Area population: 109,100 -- Unemployment rate: 4% -- Three-bedroom house: $94,400 -- Property tax: $1,200 -- Top state and local income tax: 8.5% -- Sales tax: 7% -- Robberies per 100,000 people: 29 -- Annual sunny days: 200 -- For more information: 507-288-1122

Once people move to Rochester, 1993's Best Place to Live in America, few want to move away. For instance, when production engineering manager Bill Leary and seven other local IBM-ers took early retirement or buy-outs earlier this year, they refused to call it quits on Rochester, a 90-minute drive from Minneapolis/St. Paul. "We didn't want to leave the quality of life here. We like the community with its cosmopolitan yet small-town feel,'' says Leary, 52. So he and his former colleagues founded a firm called Pemstar to make precision electronic and mechanical devices. Today, 45 former Rochester IBM employees work there. It's no wonder Rochester residents are so loyal. They live in a safe, moderately priced, medical mecca, known around the world as home to the Mayo Clinic, the area's largest employer. Mayo's 1,071 doctors frequently see locals as regular patients. Although cost-conscious Mayo just reduced its work force by 3%, experts expect the clinic to be a health reform winner as Mayo's reputation draws physicians and health-care groups looking for alliance partners. Crime is not a major daily concern in Rochester, which has the nation's 11th lowest violent-crime rate, according to the FBI. Many residents feel so safe they leave their homes unlocked while they're out. You also won't find many places where parents and kids take the schools as seriously. According to Expansion Management, a magazine that annually compiles statistics for schools nationwide, Rochester has the top high school graduation rate: 104.2%. (That's no typo. The rate is based on the percentage of kids in the ninth grade who finish high school. Recent emigres have boosted the size of the high school senior class.) "Parents here tend to be well educated and affluent. In addition, they get involved and they care,'' says Expansion Management's editor Jack Wimer. One more fact, if you're considering putting down stakes here: Nearly everyone is white and Christian. Furthermore, a recent study showed that 36% to 49% of county residents preferred to live in neighborhoods where there were few or no blacks, Southeast Asians, Hispanics or Native Americans. Jackie Trotter, executive director of Building Equality Together, a community action group, says: "The leadership and residents have made a commitment to this problem --we're working on it.''

3. Provo/Orem, Utah -- Area population: 269,500 -- Unemployment rate: 3.1% -- Three-bedroom house: $110,000 -- Property tax: $800 -- Top state and local income tax: 7.2% -- Sales tax: 6.25% -- Robberies per 100,000 people: 17 -- Annual sunny days: 232 -- For more information: 801-379-2555

A decade ago, the 50-mile stretch from Provo/Orem north to Salt Lake City was little more than a farm-filled plateau that skiers passed through to reach Snowbird and other resorts. Now the region's driving economic force has switched from snow to silicon. The Utah Valley houses 230 high-tech outfits, including 78 that opened their doors last year. Their total sales hit $2.5 billion in 1993, up 8.1% in 12 months. Demographers call Provo/Orem, our 1991 Best Place to Live in America, a prime example of an Edge City -- that is, a small locale (in this case, two adjacent cities) flowering in the shadow of a metropolis: Salt Lake. Newcomers + can't resist the region's bang-up combination of economic strength (4.8% recent job growth) and its striking scenic location on the shore of Utah Lake, beneath the western face of the Wasatch range. With the area's strong scores in the crime, economy, health, housing and transportation categories, Provo (pop. 90,000) and Orem (pop. 72,000) rank as our Best Place in the West. No wonder people are moving to Utah County at a rate of 1,300 a month. Many are returnees, graduates of Provo's Brigham Young University who left the area for California in the '80s because there were few high-tech jobs in Utah. "The new economy here has reversed our brain drain," says Provo/Orem Chamber of Commerce president Steve Densley. People also feel safe here: Provo/Orem has the eighth lowest violent-crime rate in the nation. The town leaders don't even tolerate urban street art. Orem recently converted a hearse into a graffiti-buster that uses a high- pressure hose and baking soda to wash away any unwanted spray-painted signs. "We promise the citizens that scrawls will be gone within 24 hours," says Mayor Stella Welsh.

These days, the valley is abuzz with speculation about the June merger of software giants Novell (of Provo) and WordPerfect (of Orem). The marriage may lead to near-term pain -- Novell acknowledges that there will be layoffs as the firms consolidate -- but analysts predict long-term gain. "The purchase lets Novell make a strong offensive move against Microsoft," says Therese Murphy of Smith Barney. But free-living, single techies may not feel too comfortable here. Mormons, who make up 70% of the population, favor families -- the bigger, the better. And while you can find a beer bar on Provo's main drag, the locals who share the Mormon church's antipathy to alcohol definitely prefer lemonade.

4. Salt Lake City/Ogden -- Area population: 1.1 million -- Unemployment rate: 3.3% -- Three-bedroom house: $118,700 -- Property tax: $1,000 -- Top state and local income tax: 7.2% -- Sales tax: 6.25% -- Robberies per 100,000 people: 81 -- Annual sunny days: 232 -- For more information: 801-364-3631; 801-621-8300

If you need a million or more neighbors to feel at home but don't want big- city crime rates, traffic congestion or pollution, Salt Lake City may be the place for you. Although there are more than a million people scattered through this metropolitan area, which we rank as America's Best Big Place, booming Salt Lake City itself remains uncrowded, with only 160,000 residents. Ogden, a fairly sleepy business center 35 miles due north, adds another 64,000 to the metro area. In its bid to host the 2002 Winter Olympics, the home of the Utah Jazz chose the motto, "The world is welcome here." For sure! Peter Metcalf, 39, president of Black Diamond, a maker of rock- and ice-climbing gear, moved his company, wife Kathleen, two daughters and a son in 1991 from high-priced Ventura, Calif. With starter homes going for a modest $60,000, several of his workers who transferred became first-time homeowners. "A number are Hispanic and ardent Roman Catholics," says Metcalf. "They were surprised that the community embraced them so warmly." Such success stories are luring others. For example, a 400-person AT&T Universal Card Customer Service Center opened here a year ago. The relatively low cost of housing and prospects for home appreciation are two of Salt Lake's best draws today. Accountants Ernst & Young just ranked the city as the seventh most affordable housing market in the country, though increasing demand is forcing prices higher. "Listings these days go for close to full price," says Century 21 McAfee Realtors agent David Sampson. The area's health care also ranks with America's best. For instance, paramedics respond to 911 emergency calls within four minutes in downtown Salt Lake. In addition, University Hospital is the major medical and research center for five surrounding states, with a strong reputation in pediatrics -- appropriate for this family-oriented area. Although the 535 inches of powder snow that fall annually in the valley's seven canyons throw off $1.5 billion in annual tourism revenues, the snow offers residents fabulous leisure activities as well. There are nine major resorts within an hour's drive of downtown. And when the skis get mothballed in May, Utahns roll out their mountain bikes. What's more, there's the famous lake, larger than the state of Delaware, for water-skiing, sailing and windsurfing. Ecotourism also boosts the economy. A surprise new megahit: Ogden's Dinosaur Park. This year, more than 100,000 visitors will come to gawk at concrete replicas of bronto-, tyranno- and related sauruses.

5. San Jose -- Area population: 1.5 million -- Unemployment rate: 7.3% -- Three-bedroom house: $258,300 -- Property tax: $3,200 -- Top state and local income tax: 11% -- Sales tax: 8.25% -- Robberies per 100,000 people: 124 -- Annual sunny days: 257 -- For more information: 408-291-5250

Once the ugly stepchild of San Francisco 50 miles away, these days San Jose looks more like Cinderella at the ball. And that's not just because the new Sharks pro hockey team nearly made it to the Stanley Cup finals. The capital of Silicon Valley suffered severely in the early '90s from defense cutbacks and a computer industry slowdown. But now San Jose, like much of northern California, is on the rebound. Indeed, the nation's 31st largest metro area moved up a full 105 spots in this year's rankings. That leap was partly because our readers valued sunny weather more this year. But the area's improving economy was a big factor too. Since 1993, more than 80 companies expanded or moved to the area, which boasts the home offices of Apple Computer, Intel and Silicon Graphics, as well as 3,700 other high-tech firms employing more than 208,000 people. And prospects look chipper for local chipmakers. Says Stephen Levy, director of the Center for Continuing Study of the California Economy, a local think tank: "The outlook is one of substantial opportunity." The most ethnically diverse of our top 10 places, San Jose has lately given itself a major makeover. For instance, the San Jose Arena opened last fall, and Streisand and Pavarotti have already played there. "We stay a lot closer to home now. There's plenty to do in our own backyard,'' says Diana Paradiso, 41, a lifelong resident. For memorable dining, however, it's worth the one- hour drive to San Francisco, which MONEY rated the second best restaurant town in America last year, after New York City. Although residents often take advantage of San Francisco's first-rate health care, the valley's Stanford University Medical Center is aces, especially for cardiovascular treatment. But good care doesn't come cheap. In this pricey area, health costs are nearly 30% higher than the U.S. average, according to the American Chamber of Commerce Researchers Association. San Jose's sky-high housing prices can be a problem too. Last year, however, the housing department committed $4.2 million to develop 152 homes for moderate-income families. For example, Ryland Mews offers first-time buyers two-bedroom condos for $162,500 to $167,500 with just 3% down and a 7.875% 30- year fixed mortgage.

THE BEST OF THE REST Here are capsule descriptions of the metropolitan areas that ranked No. 6 through 10 in our 1994 ratings: 6. STAMFORD/NORWALK, CONN. (pop. 330,700; for more information about Stamford call 203-359-4761; for Norwalk, 203-866-2521). Has gained back nearly all the jobs lost in the early '90s, as last year's job growth was nearly 4%; the local unemployment rate is now just 3.4%. . .Since 1989, more than 280 firms, especially in finance and publishing, have relocated to the area, which now has the third largest concentration of home offices for FORTUNE 500 firms, including GTE, Xerox and Pitney Bowes. . .One draw vs. nearby New York City: lower taxes; top income tax rate is 4.5%, vs. 11.275% in New York. . .Has one of the nation's lowest crime rates. . .Home prices are high, though; typical three-bedroom: $283,000. . .Proximity to New York's doctors, hospitals, arts and entertainment.

7. GAINESVILLE, FLA. (pop. 186,300; 904-334-7100). This home of the University of Florida in the north-central part of state was also in our top 10 in '92. . . Like college towns of Chapel Hill and Provo, the campus helps keep local economy recession-resistant and offers arts and culture. . .Unemployment rate: 3.4%. . .Economic analysis and forecasting firm NPA Data Services looks for impressive 15.4% total job growth through 1997. . . University of Florida graduates would rather take any job than leave sunshine, mild winters, small- town charm. . .No state income taxes and none likely soon. . .Popular retirement location. . .Three-bedroom houses go for approximately $80,300. . .A 1 1/2-hour drive to Atlantic coast beaches, 2 1/2 hours to Orlando. . .But crime is a serious concern, especially car theft (up 35% in '93).

8. Seattle (population including Bellevue and Everett: 2.1 million; 206-389-7200). The economy of our No. 1 place in 1989 cooled for a while but is starting to come back, thanks largely to its lure as a start-up haven for multimedia, software, biotech and some 400 environmental cleanup firms. . . Considering that No. 1 employer Boeing has cut 19,000 local jobs since 1990, the economy has held up fairly well. "In the past when we had large losses at Boeing, we suffered a recession," says Dick Conway, publisher of the Puget Sound Economic Forecaster newsletter. "This time around, we didn't because our economy is diversified.". . .Typical three-bedroom: $170,000, up 4% since '93. . . Scenic Olympic and Cascade mountains, Puget Sound offer outdoor action while three pro sports teams offer spectator delights. . .So- called Grunge Capital of America sports funky restaurants and new bands. . .As in Gainesville, Seattle residents enjoy no state income tax.

9. SIOUX FALLS, S.D. (pop. 142,600; 605-336-1620). Our No. 1 in 1992. . .Like the Eveready bunny, Sioux Falls' economy keeps going and going and going. . .The area has one of the lowest unemployment rates in the U.S., though many jobs pay below $10 an hour. . .Expected to thrive as a regional center for shopping, health care, banking, telemarketing. . .No state income tax and none on the boards. . .With the National Association of Realtors reporting home prices up 10% compared with a year ago, typical three-bedroom now goes for about $80,000. . .Among the lowest violent- and property-crime rates nationwide. . .Air and water are especially clean. . .79% of women with kids under six work outside the home, vs. 60% U.S. average. . .Lookalike population, however, is 96.8% white.

10. ALBUQUERQUE (pop. 602,500; 505-764-3700). Recent job growth (4.5%) makes economy as hot as the regular 90 degree middays in July. . .Bidding wars for homes, which sell in days; typical three-bedroom costs $119,500, up 26% from May 1993, according to Century 21. . .Becoming high-tech haven known as Silicon Mesa with the likes of chipmaker Intel's $1.8 billion, 2,400-job expansion. . .Sandia Mountains among the most beautiful vistas in our top 10. . .Strong Native American, Spanish and Mexican influence on arts, architecture and foodIAnd the human factor: James Kelly, 50, and his wife Bernadette Manning, 38, came here from Hartford a year ago. He's now a research scientist at the University of New Mexico, and she started her own law firm, specializing in real estate and government contracts. Says Kelly: "People aren't pretentious here. It's been one of the best years of our lives.''

BOX:

. . .Lowest violent crime rate: Eau Claire, Wis. (70 per 100,000 people). . .Lowest property crime rate: Johnstown, Pa. (1,533 per 100,000). . .Lowest unemployment rate: Lincoln, Neb. (2.4%). . .Cheapest home prices: Waterloo, Iowa ($48,100 for a three-bedroom). . .Shortest commute: Grand Forks, N.D. (13 minutes). . .Top high school graduation rate: Rochester, Minn....Strongest 1993 job growth: Laredo, Texas (up 8.7%). . .Best future job growth (1993-97): Punta Gorda, Fla. (up 25.4%). . .Most doctors per capita: Rochester, Minn.. . .Lowest cost of living: Pueblo, Colo. (88% of U.S. average). . .Best overall weather: San Diego

, BOX:

The 5 Best Big Places to Live Salt Lake City/Ogden San Jose Seattle San Diego Denver

The 5 Best Mid-size Places to Live Raleigh/Durham, N.C. Provo/Orem, Utah Stamford/Norwalk, Conn. Albuquerque Madison, Wis.

The 5 Best Small Places to Live Rochester, Minn. Gainesville, Fla. Sioux Falls, S.D. Nashua, N.H. Pueblo, Colo.

The 5 Best Places in the Midwest Rochester, Minn. Sioux Falls, S.D. Madison, Wis. Columbia, Mo. Grand Forks, N.D.

The 5 Best Places in the West Provo/Orem, Utah Salt Lake City/Ogden San Jose Seattle Albuquerque

The 5 Best Places in the Northeast Stamford/Norwalk, Conn. Nashua, N.H. Boston Central New Jersey New Haven

The 5 Best Places in the South Raleigh/Durham, N.C. Gainesville, Fla. Austin Bryan/College Station, Texas Naples, Fla.

BOX: READERS' POLL

You now rate low crime over a clean environment

Our readers have a new No. 1 concern when choosing a place to live. Reflecting the public's growing outcry for improved safety, the desire for a low crime rate edged out clean water, the leading factor for the past four years. Clean air came in third again. In all, we asked readers to rate the importance of 43 factors, on a scale of 1 to 10, that they might value in a community. Two we added this year scored strongly: future job growth (7.7) and a racially diverse population (6.3). Also, you were more concerned this year than last about sunny weather and the prospects for higher local taxes. But good schools, nearby skiing, low house prices and proximity to major league sports teams mattered less to you compared with a year ago.

CHARACTERISTIC MEAN SCORE Low crime rate 9.1 Clean water 9.0 Clean air 8.8 Plentiful doctors 8.6 Many hospitals 8.5 Strong state government 8.0 Low income taxes 8.0 Low property taxes 7.9 Housing appreciation 7.8 Affordable medical care 7.7 Future job growth 7.7 Good schools 7.6 Low risk of state tax rise 7.6 Inexpensive living 7.5 Recession resistance 7.5 Low sales taxes 7.5 Recent job growth 7.3 Close to colleges 7.2 Affordable car insurance 7.2 High civic involvement 7.2 Near lakes or ocean 7.1 High marks from ecologists 7.1

CHARACTERISTIC MEAN SCORE Low unemployment rate 7.0 Short commutes 6.9 Sunny weather 6.5 Close to a big airport 6.5 Low risk of natural disasters 6.5 Close to relatives 6.5 Near national forests or parks 6.5 Low house prices 6.3 Racially diverse population 6.3 Near places of worship 6.3 Near a big city 5.9 Museums nearby 5.4 Good public transportation 5.3 Proximity to major league sports 5.0 Local symphony orchestras 5.0 Zoos or aquariums 4.6 Near amusement parks 4.2 Close to skiing area 3.6 Proximity to minor league sports 3.6 Far from nuclear reactors 2.7 Lack of hazardous waste 1.6

Source: Beta Research, Syosset, N.Y.

BOX: NO. 300: JACKSON, MICH.

Clark Equipment and Goodyear left skid marks when they closed their plants in this southern Michigan city in the early '80s and took more than 2,000 jobs with them. About the same time, Gilbert Commonwealth, an engineering firm, removed another 2,000 jobs. The area, which we ranked No. 277 last year, has yet to fully recover. Jackson's poor ranking also traces to its high violent- crime rate, though local officials note that crime in the state's maximum- security prison there inflates the FBI stats. However, growth west of the city -- and the affordable $62,000 three-bedroom homes there -- provide hope that Jackson is beginning to bounce back.

CHART: NOT AVAILABLE CREDIT: NO CREDIT CAPTION: COMPARING OUR TOP 10 Although no metro area sweeps top honors across the board, No. 1-ranked Raleigh/Durham/Chapel Hill, N.C. scores extremely well in four of nine broad categories. The table awards 100 points for the best score of all 300 places in each category; the highlighted squares denote the top performance among the 10. Rochester, Minn. came in second by excelling in the health, crime, education and transit categories, and No. 6 Stamford/Norwalk achieves its perfect arts score because of proximity to New York City. No. 9 Sioux Falls, Utah's No. 3 Provo/Orem and No. 4 Salt Lake City/Ogden boast humming economies. So does No. 7 Gainesville, though its crime rate is a drag. No. 5 San Jose shines in weather, health, leisure and arts, owing to nearby San Francisco's impressive medical facilities. No. 10 Albuquerque is blowing the roof off its housing market, and No. 8 Seattle nosed out San Jose in leisure.

CHART: NOT AVAILABLE CREDIT: NO CREDIT CAPTION: The Top 300 Places Last year's ranking appears in parentheses. The cities with N.R. were not ranked in 1993 -- the U.S. Office of Management and Budget has since reclassified their metro areas. Newburgh, N.Y. includes the former Orange County, N.Y., and the others were considered part of the Boston or New York City metropolitan areas last year.