Texas' Capital City rose significantly from 47th on last year's list. Austin was behind cities such as No. 1 Raleigh, N.C. and No. 4 Fayetteville, Ark. The list was ranked according to factors such as cost of doing business and projected employment growth.

Forbes.com cited Austin's projected annual job growth rate of 2.3 percent--the fifth fastest in the country, and its relatively low subprime mortgage exposure.

For its reporting on Austin, Forbes.com spoke with the Charles Schwab Corp., which expanded its Austin presence in 2007 when it purchased the 401(k) Co. "The city of Austin is extremely business-friendly. They have bent over backwards to accommodate us," Glenn Cooper, head of real estate at Schwab, told the news site.

The top 10 cities on the list were as follows:

1. Raleigh, N.C.

2. Fort Collins, Colo.

3. Durham, N.C.

4. Fayetteville, Ark.

5. Lincoln, Neb.

6. Asheville, N.C.

7. Des Moines, Iowa

8. Austin, Texas

9. Boise, Idaho

10. Colorado Springs, Colo.

Four of the 10 cities selected by Forbes.com are Bestboomertowns

Source: Austin Business Journal