Market Overview
Home Prices in Cottonwood, AL
The median home value in Cottonwood, AL is $171,266 as of mid-2026, according to Zillow's Home Value Index (ZHVI).That's up 2.7% compared to a year ago and up 4.8% from two years prior.
Compared to the U.S. national median of $410,000, homes in Cottonwood are priced58% below average. Cottonwood is part of the Dothan, AL metro area.
Over the past five years, Cottonwood home values have risen by approximately28.6%, reflecting strong long-term appreciation in this market.
Price History
Cottonwood Home Price Trend
City Comparison
Cottonwood vs. National Median
At $171,266, homes in Cottonwood cost 58% below the national median of $410,000. This makes Cottonwood a relatively affordable market for buyers seeking value.
Affordability
What Does It Cost to Buy in Cottonwood?
20% Down Payment
$34,253
on $171,266
Monthly P&I
$893/mo
30-yr @ 6.8%
Total Monthly Est.
~$1,134/mo
incl. taxes & insurance
Income Needed
$45,360
gross annual (30% rule)
10% Down Option
$17,127
+ PMI applies
Loan Amount (20% dn)
$137,013
at current rates
Estimates assume a 30-year fixed mortgage at 6.8%. Monthly total includes estimated property taxes and homeowner's insurance. Actual costs vary.
FAQ
Frequently Asked Questions
What is the average home price in Cottonwood, AL?
The median home value in Cottonwood is $171,266 as of mid-2026, according to Zillow's Home Value Index (ZHVI). That's up 2.7% year-over-year.
How much have home prices changed in Cottonwood?
Over the past year, home values in Cottonwood have increased by 2.7%. Over five years, prices have risen approximately 28.6%.
How much do I need to earn to buy a home in Cottonwood?
To comfortably afford the median home price of $171,266 with a 20% down payment ($34,253) at today's rates (6.8%), you'd need a gross annual income of approximately $45,360. This assumes keeping total housing costs at or below 30% of gross income.
How does Cottonwood compare to the national average home price?
The national median home value is approximately $410,000. At $171,266, homes in Cottonwood are 58% below the national average.
What metro area is Cottonwood part of?
Cottonwood is part of the Dothan, AL metropolitan area. Home prices and market conditions can vary across the broader metro region.