Real Estate Investing in Cottonwood, Alabama (36320)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36320 (Cottonwood, AL)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 21.6% of homes vacant — above national norms.
- Lower household income: $39,640 median — tenant affordability is tighter.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Cottonwood, AL (36320)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 36320 Cottonwood
Looking more closely, ZIP 36320 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $168K median. It rewards specialists, not generalists.
Distressed markets are won on execution, not on spreadsheets. ZIP 36320 records the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Within AL, ZIP 36320 trails on several market indicators that neighboring Houston County submarkets outperform. The gap is real and notable enough to shape underwriting.
The demographic picture in 36320 includes headwinds that any investor should price in. Income distribution skews lower than Cottonwood averages, and tenant stability requires active management.
Experienced landlords with local relationships tend to find 36320 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Cottonwood:
Market Trends
Home Value History (with trend line)
📊 How Does 36320 Compare?
| Metric | 36320 | Cottonwood | Dothan, AL | Alabama |
|---|---|---|---|---|
| Home Value | $168,170 | $168,170 | N/A | $231,003 |
| 5-Year CAGR | 5.1% | 5.1% | N/A | 5.6% |
| Avg Rent | $810 | $810 | N/A | - |
| Cap Rate | 3.8% | 3.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 36320 (Cottonwood, AL). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 36320 (Cottonwood, AL)?
~25 seconds · no account needed · your report is anonymous
📊 Market Snapshot
| Home Value | $168,170 |
| Monthly Rent | $810 |
| Price-to-Rent | 17.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.8% |
| Cap Rate | 3.8% |
| 5-Year IRR | 8.8% |
📈 Home Appreciation
| 1-Year | +5.8% ▲ |
| 3-Year CAGR | +4.0% ▲ |
| 5-Year CAGR | +5.1% ▲ |
| 10-Year CAGR | +4.7% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 36320
Population: 3,137
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 36320
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
What is the median home value in Cottonwood, AL?
Typical homes in Cottonwood, AL go for around $168K. The 5-year CAGR of 0.0% measured price movement.
What type of investing works in Cottonwood, AL?
Investors usually favor careful cash-flow rentals with hands-on management in Cottonwood, AL. With home values at $168K and rents near $810/mo, other strategies can work but produce consistent rather than outsized returns.
What kind of tenants rent in Cottonwood, AL?
Cottonwood, AL offers a measured renter base at the $810/mo rent level. Tenant turnover is reasonable for well-managed properties.
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 is the typical rental rate in Cottonwood, AL?
Investors in Cottonwood, AL typically see rents near $810/mo per month against $168K home values - a solid setup for rental cash flow.
You know 36320 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 36320 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 36320 ranks in Dothan, AL
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 36320 (Cottonwood)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 36320 (Cottonwood, AL).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.