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).
Americans tend to describe locations more by density and arrangement rather than population. Kinda similar to how we refer to distances in time rather than distance. In a city you have a LOT within 5 minutes of you at any time. Within a rural town you have… maybe 5 neighbors within that same span of time walking.