The magazine cites Sugar Land's low cost of living and "high quality of life" to come to the ranking.
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"Our selection as the top destination in the South is another indication that using revenue from tourism and commercial sources to reduce property taxes for our homeowners has been a successful strategy," said City Manager Allen Bogard in a news release. "We are proud that Money Magazine has recognized what we already know - Sugar Land is one of the country's premier destinations to live, work and play."
The city points to what it says is one of its strengths: the development of the Imperial Market, the 26-acre project that will include shops and other retail space and the Fort Bend Children's Discovery Center.
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It's not the first time Sugar Land has landed on a Money "best of" list. In 2014, Sugar Land was named the best place to find a job.
Skeeters success translating into economic boost for Sugar Land