Real Estate Investing in Cottonwood, Arizona (86326)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 86326 (Cottonwood, AZ)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Cottonwood, AZ (86326)?
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Market Analysis: 86326 Cottonwood
Not every below-median market is a bargain. Cottonwood's 86326 ZIP stands at signals that favor experienced operators who can absorb the risk $394K pricing implies.
Rent of $1,880/mo on a $394K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 86326 sits below the stated 0.0% once reality is priced in.
Statewide comparisons place 86326 among AZ's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
A durable renter share of 37% in 86326 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Experienced landlords with local relationships tend to find 86326 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:
Property Strategy for 86326
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $324,630 | $1,480 | 3.3% | +7.7% | $162,315 |
| 3BR | $410,042 | $2,060 | 3.6% | +8.0% | $136,681 |
| 4BR | $518,380 | $2,300 | 3.2% | +8.4% | $129,595 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 86326 Compare?
| Metric | 86326 | Cottonwood | Prescott Valley-Prescott, AZ | Arizona |
|---|---|---|---|---|
| Home Value | $394,005 | $394,005 | N/A | $419,643 |
| 5-Year CAGR | 3.6% | 3.6% | N/A | 6.5% |
| Avg Rent | $1,880 | $1,880 | N/A | - |
| Cap Rate | 3.7% | 3.7% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 86326 (Cottonwood, AZ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $394,005 |
| Monthly Rent | $1,880 |
| Price-to-Rent | 17.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.7% |
| Cap Rate | 3.7% |
| 5-Year IRR | 7.4% |
📈 Home Appreciation
| 1-Year | -0.1% ▼ |
| 3-Year CAGR | +1.3% ▲ |
| 5-Year CAGR | +3.6% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 Rent Trends
| 1-Year | +3.6% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.7%). 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 86326
Population: 25,476
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 86326
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.
Frequently Asked Questions
Is Cottonwood in AZ worth investing in?
Cottonwood, AZ rates 3.0/5 for investability. With median values at $394K and rents near $1,880/mo, the market offers reasonable fundamentals for rental investors.
Where do rents currently stand in Cottonwood, AZ?
Rent in Cottonwood, AZ is around $1,880/mo. The resulting rent-to-value relationship with $394K pricing is reasonable for most investor models.
Does Cottonwood, AZ favor landlords or tenants?
For rental operators, Cottonwood, AZ rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
Can owner-occupants cash flow in Cottonwood, AZ?
The house hack math a challenging in Cottonwood, AZ. Owner-occupant buyers benefit from the $1,880/mo rents and $394K home values.
Which real estate strategy fits Cottonwood, AZ?
Cottonwood, AZ investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($394K prices, $1,880/mo rents) make it a reasonable choice.
You know 86326 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 86326 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 86326 ranks in Prescott Valley-Prescott, AZ
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