This rural town is 89 percent black. 59 percent of the black population in the US lives in the south in mostly rural places. Rural towns would still exist, they'd just be more pleasant and less racist. I'd even argue that rural America would thrive, because the majority of the population down there would be able to live their lives and do whatever they want, free of discrimination and prejudice.

If all of the KKK were to leave their current towns and start their own, it would be relatively small. According to estimates from 2016 there are about 5,000 - 8,000 KKK members in the US.