Real Estate Investing in Cottonwood, Alabama

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

1 ZIP codes • Population: 3,137 • Houston County

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Should you buy in Cottonwood, AL? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (60/100)

Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
2 flags
  • High vacancy: 21.6% of homes vacant — above national norms.
  • Lower household income: $39,640 median — tenant affordability is tighter.

What’s happening in Cottonwood, AL?

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3.0/ 5

Investability

Citywide average

3.0/ 5

Appreciation

5.1% 5yr CAGR

5.0/ 5

Landlord Climate

Regulatory friendliness

🏦 30-yr Fixed Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS
Avg Investability
Avg Home Value $168,170
Avg Monthly Rent $810
ZIP Codes 1

Investing in Cottonwood Real Estate

Cottonwood (Alabama) spans 1 ZIPs and roughly a sizable population. plainly the fundamentals here skew distressed, with soft rents, soft appreciation, and structural headwinds worth respecting.

Across Cottonwood's 1 ZIPs, fundamentals run tepid: thin appreciation, soft rents, and demographic trends that don't obviously reverse in the medium term.

Transaction volume in Cottonwood has thinned in a way that amplifies price discovery risk. From an investor standpoint, investors without local context should treat every number on the page with skepticism.

Cottonwood's population trends and income levels suggest a market where affordability is strained, which constrains how aggressively rents can rise without hurting collections.

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Best ZIP codes in Dothan, AL

Cottonwood is part of this metro. Every ZIP in it, ranked. Free.

Cash Flow → Appreciation → Affordable →

Landlord Ground Truth

Real numbers from people who own or manage rentals in Cottonwood, AL. Anonymous, moderated, never written by AI.

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Avg Home Value
$168,170
Avg Monthly Rent
$810
1% Rule
✗ Below
Landlord Friendly (AL)

📉 Market Crash Risk Index

Based on Dothan, AL metro

3/10
Moderate Risk
Price YoY
0/3
N/A
Rent YoY
0/2
N/A
Below List
2/3
73%
Days Pending
1/2
56 days

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⚖️ Balanced Market — Dothan, AL metro
56
Days to pending
9.0%
Listings with price cuts
0.0%
Sale-to-list ratio
📅 Data as of August 29, 2026 — updated weekly

ZIP Codes in Cottonwood, AL

Screen every ZIP in Cottonwood

Filter Cottonwood’s ZIPs by cap rate, vacancy, appreciation and 30+ more criteria, and export your shortlist to CSV — with the Investor plan ($19/mo).

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Frequently Asked Questions About Cottonwood, AL

How much should I expect to pay for a home in Cottonwood, AL?

Typical homes in Cottonwood, AL go for around $168K. The 5-year CAGR of 0.0% stable price movement.

What kind of tenants rent in Cottonwood, AL?

Tenant quality in Cottonwood, AL ranks as solid. Landlords generally report stable occupancy at market rents of $810/mo.

Is Cottonwood, AL landlord-friendly?

AL ranks as a landlord-friendly state for landlord-tenant law. Cottonwood generally follows the statewide framework, so landlords face reasonable operating rules.

What monthly rent should investors expect in Cottonwood, AL?

Rental rates in Cottonwood, AL average $810/mo. Tenant demand and $168K home values make the yield look reasonable by investor standards.

Can I house hack in Cottonwood, AL?

Cottonwood, AL offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $810/mo rent level.

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