Best Old House Neighborhoods 2010: Bargains

About 4,000 people moved to the small East Tennessee town of Harriman between 1890 and 1892. They came to purchase lots in a new town that was founded by New Yorker Frederick Gates on the principals of industry—and abstention from alcohol. Gates built an elegant house set high on a ridge overlooking the Emory River and named it Cornstalk Heights. While the house is gone, the neighborhood surrounding it remains the site of the best, most beautiful homes in town. And don't worry. A liquor store finally opened here in 1992.

The Houses
Houses range in style from Folk Victorians built during Gates's day to Craftsman and Cotswold cottages and Colonial Revivals built in the early to mid 1900s. Many homes are extremely affordable, ranging in price from $75,000 to just under $200,000.

Why Buy Now?
While many American small towns are simply caricatures of their former selves—tourist destinations with souvenir stores and fudge "shoppes" where the hardware store used to be—Harriman is the real deal: 100 percent authentic small-town America. "It's still a little gritty," says Ethiel Garlington, Director of Preservation Field Services for the nonprofit preservation group Knox Heritage. He means that as a compliment. So if you're looking for an affordable, functioning small town that's just 45 minutes from a good-sized city (Knoxville), Harriman's the place to be.

Among the best for: Bargains, Cottages and Bungalows, Small Town, South, Victorians, Waterfront