Madison, Wisconsin. The University of Wisconsin & the fact that it's a state capital generates a lot of cultural attractions, and you'll probably find it easy to hire some bright CS/engineering students if you get to that point. The core is very dense & walkable compared to other small Midwestern towns since it's on a tiny isthmus between two lakes (a nice geography too if you're into outdoor activities, although the summers can be surprisingly steamy & the winters are fairly cold). You can easily find cheap housing. Also only two hours from Chicago.