As a non-American, I’m very confused by this. If it’s a town, it’s not rural by definition. Because, you-know, it’s urban.
Also, could we get a definition of town vs small town. Do you not have the concept of a village? (Village in the UK would be a settlement with a population of a couple of thousand, with usually a pub, local shop, maybe a post office and primary school if you’re lucky).
People will start calling their settlement a “village” here when they’ve decided to start being pretentious about it. Expect to find a winery there, or a studio where someone with frizzy hair makes inscrutable physical art, or a bunch of horse enthusiasts.