Cottonwood, MN
Population 1,120 · Minnesota
About Cottonwood, MN
Cottonwood is a small town located in Minnesota with a population of 1,120 residents according to the latest US Census Bureau American Community Survey data. The median household income is $90,750 per year, which is 21% above the national median of $75,149. The median age of 37 years is close to the US median age of 38.9 years.
Housing Market Overview
The housing market in Cottonwood features a median home value of $180,200, which is 26% below the national median of $244,900. This positions Cottonwood in a moderately priced market relative to the rest of the country. Median monthly rent is $914, 21% below the national average of $1,163/month. Of the 517 total housing units, 79% are owner-occupied (370 units) and 21% are renter-occupied (99 units). The high homeownership rate suggests a stable, established residential community.
Economy & Employment
The local economy in Cottonwood shows an unemployment rate of 3.6%, which is lower than the national rate of 3.7%, indicating a relatively strong job market. The poverty rate stands at 8.1%, below the national average of 12.4%, reflecting generally favorable economic conditions. Workers in Cottonwood have an average one-way commute time of 15 minutes, one of the shorter commutes in the region.
Education & Demographics
27.1% of Cottonwood residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. This is in line with national trends in educational attainment. The community's demographic composition includes 0.4% White, 1.0% Hispanic or Latino, 1.7% Black or African American, and 1.2% Asian residents, with 1.7% of the population being foreign-born.
Cost of Living in Cottonwood, MN
Compared to national averages, Cottonwood has a median household income of $90,750 (21% above the national median of $75,149). Home values average $180,200, which is 26% below the national median. Monthly rent at $914 is 21% below the US average of $1,163. Within Minnesota, Cottonwood's income is 22% above the state average of $74,221, and home values are 12% below the state median of $204,472.
Why Live in Cottonwood, MN?
Cottonwood offers a strong local economy with a median household income of $90,750, well above the national average, and affordable housing with a median home value of $180,200, below the US average of $244,900, and rent that’s lower than the national average at $914/month. Additionally, the city features a strong job market with an unemployment rate of just 3.6%, and a low poverty rate of 8.1%, better than the national average, and short commute times averaging just 15 minutes.
Cottonwood has a population of 1,120 with a median age of 37 years. Compare Cottonwood with other cities to see how it stacks up, or explore all cities in Minnesota.
Similar Cities Near Cottonwood
Cities in Minnesota with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| Baudette | 1,117 | $71,042 | $171,000 | Compare |
| Lake Shore | 1,117 | $96,923 | $532,500 | Compare |
| Hector | 1,111 | $59,762 | $124,100 | Compare |
| Fairfax | 1,134 | $53,750 | $99,800 | Compare |
| Lake St. Croix Beach | 1,106 | $100,134 | $334,600 | Compare |
| Dellwood | 1,145 | $208,125 | $729,800 | Compare |
| Elgin | 1,147 | $87,000 | $218,200 | Compare |
| Royalton | 1,092 | $64,643 | $201,500 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Minnesota
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Cottonwood With Other Cities
Frequently Asked Questions about Cottonwood
What is the population of Cottonwood, MN?
The population of Cottonwood, MN is 1,120 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Minnesota.
What is the median household income in Cottonwood?
The median household income in Cottonwood, MN is $90,750 per year, which is 21% above the national median of $75,149.
What is the median home value in Cottonwood?
The median home value in Cottonwood, MN is $180,200, which is 26% below the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Cottonwood?
The median monthly rent in Cottonwood, MN is $914, which is 21% below the national average of $1,163/month.
What is the unemployment rate in Cottonwood?
The unemployment rate in Cottonwood, MN is 3.6%, compared to the national average of 3.7%. This lower-than-average rate suggests a relatively healthy local job market.
Is Cottonwood, MN a good place to live?
Cottonwood offers above-average incomes, affordable housing, and a strong job market. With a population of 1,120 and a median age of 37, the city appeals to a broad range of residents.
How educated is Cottonwood, MN?
27.1% of residents in Cottonwood aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Cottonwood?
Key cost-of-living indicators for Cottonwood, MN: median home value is $180,200 (26% below national), median rent is $914/month, and median household income is $90,750. The home-value-to-income ratio is 2.0x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Cottonwood?
The poverty rate in Cottonwood, MN is 8.1%, compared to the national average of 12.4%. This below-average poverty rate reflects generally favorable economic conditions in the community.
How diverse is Cottonwood, MN?
Cottonwood's population is 0.4% White, 1.0% Hispanic or Latino, 1.7% Black or African American, 1.2% Asian, and 0.0% two or more races. 1.7% of residents are foreign-born.