Cottonwood, AZ86326

Real Estate Data & Market Trends

Key Metrics at a Glance

Median Home Value
$393,000
0.9% YoY Growth
Median Household Income
$58,200
34.4% 5-Year Growth
Days on Market
53
31.0% Shorter than last year
Home Price Forecast
N/A
Median Rent
$1,900
5.6% YoY Growth
1-Bed Rent
$1,220
8.9% YoY Growth
2-Bed Rent
$1,700
4.7% YoY Growth
3-Bed Rent
$2,200
1.9% YoY Growth

Property Listings — Cottonwood, AZ

As of Oct '25, Realtor.com reports that the median days on market for a home in Cottonwood, AZ is 53. This is a decrease of -31.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 26.0%, representing a large inventory and a lot of supply pressure on home prices.

MetricZip Code AverageYear over Year % Change
Median Listing Price
$450,000-11.0%
Listing Count
12928.0%
Listings as % of Homes0.5%28.0%
Days on Market
53-31.0%
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Demographics — Cottonwood, AZ

As of the latest ACS Survey released in 2023, Cottonwood, AZ has a population of 25,500, which has increased by 1.8% over the past 5 years. Cottonwood, AZ is a moderately popular place for families, as children make up 15.9% of the population. The area has a poorly educated workforce, with 24.8% of adult residents holding a bachelor’s degree or higher. There are few residents working remotely, with 6.7% reporting working from home.

MetricLatest CensusYoY % Change
Population
25,5001.8%
% Under 18
15.9%-23.9%
% Seniors
28.4%7.6%
% WFH
6.7%-13.0%
% w/ College Degree
24.8%33.3%
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As of the latest ACS Survey released in 2023, Cottonwood, AZ is a predominantly white area, with 72.6% of the population identifying as white. The white population has shrunk by 5.2% in the last 5 years. The second most common race or ethnicity in Cottonwood, AZ is hispanic, making up 20.2% of the population. Foreign-born residents account for 11.8% of the population in Cottonwood, AZ, and this percentage has increased by 73.5% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.

Race and Ethnicity

MetricLatest Census5-Year % Change
% White
72.6%-5.2%
% Black
0.9%28.6%
% Hispanic
20.2%8.0%
% Asian
0.4%33.3%
% Foreign Born
11.8%73.5%
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Mortgage and Risk — Cottonwood, AZ

According to HUD data as of 2023, there were 378 mortgage originations in Cottonwood, AZ, of which 74.0% of loans were conventional mortgages. The average loan-to-value was 59.0%, with 22.0% above 90% LTV (very high). This implies large mortgage risk in Cottonwood, AZ. Investor activity is low, as 3.0% of loans were by investors. 15.0% of loans were cash-out refinances, suggesting many homeowners are tapping equity.

Mortgages

MetricZip Code Average
Total Loan Originations
378
% Conventional Loans
74.0%
% Government Loans
26.0%
% Investor Loans
3.0%
% Second Loans
4.0%
% Cash Out Refinance
15.0%

Loan Activity

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Rentals and Section 8 — Cottonwood, AZ

As of 2024, the percent of homes in Cottonwood, AZ under the Section 8 program is 3.7%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. 4-bedroom units appear to be good home sizes to consider for Section 8 housing in Cottonwood, AZ, because HUD payments exceed market rent, while 1-bedroom and 2-bedroom and 3-bedroom units do not.

Section 8 Market Size

Total Units under HUD
159
Total Units Section 8
159
% Rentals under Section 8
3.7%
% Occupied Section 8
87.8%

Section 8 Opportunity

Home SizeHUD PremiumMarket RentMax HUD Rent
1 Bedroom-$30$1,220$1,190
2 Bedroom-$220$1,700$1,480
3 Bedroom-$160$2,200$2,040
4 Bedroom$100$2,250$2,350

Affordability — Cottonwood, AZ

Home Price to Income Ratio

MetricZip Code Average
Home Price to Income Ratio6.4
Median Home Price$393,000
Median Household Income$58,200

Cottonwood, AZ — ZIP Code Boundary Map

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Frequently Asked Questions