This Texas city is the No. 1 college town in the U.S.—here are the top 10

Austin, the state capital of Texas , can add another title to its name: best college town in the U.S., according to a recent ranking by WalletHub .

The city is home to a number of schools, including the University of Texas at Austin, which is one of the largest research universities in the U.S. and has a student population of over 51,000 . The city itself is located in central Texas and home to nearly 980,000 people, with a median household income of $86,556, per the latest available U.S. Census data .

To generate its list of best college towns, WalletHub used data from a number of sources, including the U.S. Census Bureau and the Bureau of Labor Statistics, to analyze 415 cities and towns of various sizes across America. Cities and towns were then ranked according to three key elements:

Wallet friendliness: Considers factors such as a city's housing costs, cost of higher education and share of rental units

Social environment: Measures elements like the share of a city's population between the ages of 18 and 35, nightlight options and number of festivals

Academic and economic opportunities: Examines factors like the quality of higher education in the city, the earning potential of college grads and share of part-time jobs

Here are the top 10 college towns, according to WalletHub:

1. Austin, Texas — University of Texas, Austin
2. Ann Arbor, Michigan — University of Michigan, Ann Arbor
3. Orlando, Florida — University of Central Florida
4. Tampa, Florida — University of Tampa
5. Raleigh, North Carolina — North Carolina State University
6. Scottsdale, Arizona — Scottsdale Community College
7. Charlottesville, Virginia — University of Virginia
8. Tempe, Arizona — Arizona State University, Tempe
9. Gainesville, Florida — University of Florida
10. — Georgia Institute of Technology

It's not too surprising that cities in the southeast and southwest dominate the list. On top of warmer weather, the schools in these cities tend to have successful athletic programs that the surrounding communities rally around. Plus, the cities tend to come with a lower cost of living than larger cities like New York or Los Angeles.

Money Report College towns aren't just for students

Even if you're not enrolled in a degree program, you can still reap the benefits living in a college town offers. They can be great for families and retirees too.

Universities often make many campus events open to the public, such as art shows, sporting events and lectures. Plus, college towns tend to be highly walkable, with amenities like grocery stores, community spaces and restaurants within close proximity to one another.

"Not only are college cities a special place to live and study, but they are also some of the most innovative spaces for all community members," Frances Marie Gipson, a clinical professor at Claremont Graduate University, says in WalletHub's study.

"This results in communities that tend to be more diverse, safe, and involve spaces that honor the individual and wholeness of belonging," she says.