Methodology and Data Standards

How Best Neighborhoods USA works

Best Neighborhoods USA is powered by National Data System (NDS). The product combines Zillow neighborhood housing history, governed neighborhood geometry, and Census-derived block group intelligence federated into Zillow neighborhood geography.

Important: NDS neighborhood Census measures are derived neighborhood estimates and are not official Census neighborhood statistics.
Current Neighborhood Profiles
23,924
Census + Zillow Profiles
15,031
Housing-Only Profiles
8,893
Index-Eligible Profiles
14,967

Data sources

  • Zillow neighborhood monthly housing history
  • 2024 ACS 5-Year Census block group tables
  • NDS governed Zillow to Census block group spatial crosswalk
  • NDS certified scoring and ranking framework

Neighborhood coverage and eligibility

  • 23,924 total current Zillow neighborhoods are preserved.
  • 15,031 neighborhoods have Census-derived intelligence and can participate in scoring.
  • 8,893 neighborhoods remain housing-only and do not receive the composite index.
  • Every displayed rank is shown with its eligible denominator.

Scoring framework

Neighborhood Momentum Score

70% Zillow year-over-year value change percentile and 30% Zillow month-over-month value change percentile.

Neighborhood Stability and Strength Score

Income strength, employment strength, bachelor's-plus attainment, homeownership, occupancy stability, and low rent burden.

Neighborhood Value Opportunity Score

Price-to-income affordability, income strength, employment strength, bachelor's-plus attainment, and occupancy stability.

Best Neighborhoods USA Index

40% Stability and Strength, 35% Value Opportunity, and 25% Momentum.

Census aggregation rules

  • Count tables use area interpolation.
  • Margins of error use root-sum-of-squares methodology.
  • Median household income is household-weighted.
  • Median gross rent is renter-household weighted.
  • Median owner-occupied housing value is owner-occupied-housing weighted.

Demographic governance

Race, ethnicity, ancestry, birthplace, sex, gender, religion, and identity composition remain descriptive intelligence. These measures are not used as scoring components that make a neighborhood rank higher or lower.

National Data System links

Questions and Answers

Methodology Questions and Answers

What data does Best Neighborhoods USA use?

The current model uses governed Zillow neighborhood housing history, 2024 ACS 5-Year Census Block Group data, the NDS Zillow-to-Census spatial crosswalk, and NDS certified scoring contracts.

How are Census Block Groups converted into neighborhood estimates?

NDS intersects governed Zillow neighborhood geometry with Census Block Groups. Count measures are area-interpolated using Block Group overlap, and margins of error use root-sum-of-squares methodology.

How is neighborhood median household income estimated?

NDS uses a household-weighted average of Census Block Group medians. It is an NDS-derived neighborhood approximation, not an official Census neighborhood statistic.

How is neighborhood median gross rent estimated?

NDS uses a renter-household-weighted average of Block Group median gross rent values rather than summing medians.

How is Census median owner-occupied home value estimated?

NDS uses an owner-occupied-housing-weighted average of Block Group median values.

How is Neighborhood Momentum calculated?

Neighborhood Momentum is 70% year-over-year Zillow housing change and 30% month-over-month change.

How is the overall index weighted?

The Best Neighborhoods USA Index is 40% Stability and Strength, 35% Value Opportunity, and 25% Momentum.

Why are not all neighborhood profiles ranked?

The site preserves 23,924 current neighborhood profiles, while 14,967 currently meet the governed data requirements for the composite index.

Why are ranking denominators required?

Every published rank should communicate the eligible comparison universe. A city rank is shown as #X of Y eligible neighborhoods rather than as a standalone number.

Does race or ethnicity affect a neighborhood's score?

No. Race, ethnicity, ancestry, birthplace, sex, gender, religion, and identity composition are descriptive intelligence and are not scoring components.

Are NDS neighborhood Census measures official Census neighborhood statistics?

No. They are NDS-derived neighborhood estimates built from official Census Block Group data and governed spatial relationships.

What is National Data System?

National Data System is the data intelligence and governance infrastructure behind Best Neighborhoods USA.