Raleigh, N.C. topped the 2014 Forbes list. Des Moines was ranked number one last year.
Forbes highlighted the arrival of the recent multi-billion dollar Microsoft and Facebook data centers being built in the metro.
The magazine says business costs are 17 percent lower than the national average and the cost of living is six percent lower.
“The city’s $38 billion economy is projected to grow at a robust 4% annual rate over the next three years,” the article added.
Dubuque, Iowa City and Ames ranked eighth, 13th and 14th respectively in Forbes’ Best Small Places for Business list.