Cottonwood, AL36320

Real Estate Data & Market Trends

Key Metrics at a Glance

Median Home Value
$158,000
2.1% YoY Growth
Median Household Income
$45,400
13.9% 5-Year Growth
Days on Market
37
68.0% Longer than last year
Home Price Forecast
1.3%
Median Rent
N/A
N/A
1-Bed Rent
N/A
N/A
2-Bed Rent
N/A
N/A
3-Bed Rent
N/A
N/A

Property Listings — Cottonwood, AL

As of Oct '25, Realtor.com reports that the median days on market for a home in Cottonwood, AL is 37. This is a increase of 68.0% from last year, suggesting that homes are sitting on the market longer than last year. The percentage of listed homes with a reduced price is 20.0%, representing a small inventory and little supply pressure on home prices.

MetricZip Code AverageYear over Year % Change
Median Listing Price
$247,000-20.0%
Listing Count
10-50.0%
Listings as % of Homes0.3%-50.0%
Days on Market
3768.0%
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Demographics — Cottonwood, AL

As of the latest ACS Survey released in 2023, Cottonwood, AL has a population of 3,140, which has decreased by -15.4% over the past 5 years. Cottonwood, AL is a less popular place for families, as children make up 14.6% of the population. The area has a poorly educated workforce, with 13.4% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 5.8% reporting working from home.

MetricLatest CensusYoY % Change
Population
3,140-15.4%
% Under 18
14.6%-31.5%
% Seniors
26.5%77.9%
% WFH
5.8%163.6%
% w/ College Degree
13.4%42.6%
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As of the latest ACS Survey released in 2023, Cottonwood, AL is a predominantly white area, with 78.3% of the population identifying as white. The white population has shrunk by 4.0% in the last 5 years. The second most common race or ethnicity in Cottonwood, AL is black, making up 14.3% of the population. Foreign-born residents account for 1.4% of the population in Cottonwood, AL, and this percentage has increased by 7.7% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.

Race and Ethnicity

MetricLatest Census5-Year % Change
% White
78.3%-4.0%
% Black
14.3%-4.0%
% Hispanic
3.8%442.9%
% Asian
0.3%200.0%
% Foreign Born
1.4%7.7%
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Mortgage and Risk — Cottonwood, AL

According to HUD data as of 2023, there were 105 mortgage originations in Cottonwood, AL, of which 70.0% of loans were conventional mortgages. The average loan-to-value was 70.0%, with 41.0% above 90% LTV (very high). This implies large mortgage risk in Cottonwood, AL. Investor activity is low, as 1.0% of loans were by investors. 10.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.

Mortgages

MetricZip Code Average
Total Loan Originations
105
% Conventional Loans
70.0%
% Government Loans
30.0%
% Investor Loans
1.0%
% Second Loans
1.0%
% Cash Out Refinance
10.0%

Loan Activity

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Rentals and Section 8 — Cottonwood, AL

Cottonwood, AL lacks sufficient Section 8 program data for analysis.

Section 8 Market Size

Total Units under HUD
66
Total Units Section 8
13
% Rentals under Section 8
0.3%
% Occupied Section 8
87.0%

Section 8 Opportunity

Home SizeHUD PremiumMarket RentMax HUD Rent
1 BedroomN/AN/A$670
2 BedroomN/AN/A$820
3 BedroomN/AN/A$1,120
4 BedroomN/AN/A$1,270

Affordability — Cottonwood, AL

Home Price to Income Ratio

MetricZip Code Average
Home Price to Income Ratio3.2
Median Home Price$158,000
Median Household Income$45,400

Cottonwood, AL — ZIP Code Boundary Map

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Frequently Asked Questions