Why Arkansas is a better place to live than San Francisco, according to U.S. News

Fayetteville, the third-largest city in Arkansas and one-time home of Bill and Hillary Clinton, was ranked higher than San Francisco in U.S. News and World Report's annual Best Places to Live report. We took a look how each city compares. less Fayetteville, the third-largest city in Arkansas and one-time home of Bill and Hillary Clinton, was ranked higher than San Francisco in U.S. News and World Report's annual Best Places to Live report. We took a ... more Photo: DenisTangneyJr/Getty Images/iStockphoto Photo: DenisTangneyJr/Getty Images/iStockphoto Image 1 of / 20 Caption Close Why Arkansas is a better place to live than San Francisco, according to U.S. News 1 / 20 Back to Gallery

U.S. News and World Report's annual Best Places to Live in America rankings are out, and San Francisco fares pretty well — it's No. 7 out of 125 cities.

No. 1 is Austin, Texas. Austin has world-class live music, a Fun Fun Fun Fest and the LBJ Presidential Library, so it's easy to see why it was rated the cream of the crop. There's even a statue of legendary guitarist Stevie Ray Vaughan, which people love despite Frommer's one-star view dismissing it as "artificial and awkward."

At least Austin has a statue of a rock star. San Francisco, the one-time home of Jerry Garcia, Janis Joplin, Jimi Hendrix and many others, doesn't. The best it can offer is the Golden Gate Park tribute to Ludwig van Beethoven, superstar musical talent of 1813.

The No. 4 ranking fell to Fayetteville, Ark., probably not the first place you'd think of as being in San Francisco's league. Why is this Ozark Mountains burg a better place to live than Herb Caen's shining "Baghdad by the Bay"? As you might have guessed, it comes down to affordability.

We examined U.S. News and World Report's metrics — and a couple of its unscientific observations — for both Fayetteville and San Francisco in the slideshow above. Comparing cities of markedly different population sizes might not be fair, but it does underscore the steep premium San Franciscans pay to live there.

S.F.-based finance expert Sam Dogen recently estimated that a "middle-class" family of four residing in San Francisco would still be living paycheck to paycheck and not saving outside their 401k and 529 plans even if their income was $300,000 a year.

"There's a moving truck shortage in places like San Francisco because so many people are moving out of this expensive city and other expensive coastal cities," he writes. "If you live in an expensive metropolitan area, consider relocating to lower your cost of living or at least try and take advantage of the valuation differential by investing in Middle America.

Fayetteville is exactly the kind of Middle America place that Dogen is talking about. No, it doesn't have the beauty, the restaurants, the diversity of cultures or vibrancy of San Francisco, but we all need to retire sometime.

It's a lot easier to make your money work for you and save for your golden years in an affordable town like Fayetteville. The question is, is it worth giving up a city you love for one that promises financial security?

RELATED: Is there anywhere in California that's still 'affordable'?

U.S. News and World Report's 10 Best Places to Live

1. Austin, Texas

2. Denver

3. Colorado Springs, Colo.

4. Fayetteville, Ark.

5. Des Moines, Iowa

6. Minneapolis-St. Paul

7. San Francisco

8. Portland, Ore.

9. Seattle

10. Raleigh & Durham, N.C.

10 lowest ranked cities of U.S. News and World Report's Best Places to Live

115. Flint, Mich.

116. Brownsville, Texas

117. Salinas, Calif.

118. Memphis, Tenn.

119. Fresno, Calif.

120. Modesto, Calif.

121. Mobile, Ala.

122. Shreveport, La.

123. Stockton, Calif.

124. Bakersfield, Calif.

125. San Juan, Puerto Rico

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Read Mike Moffitt's latest stories and send him news tips at moffitt@sfgate.com.

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