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Cottonwood city, Minnesota Demographics & Population 2026

Very AffordableHome value to income ratio of 2.0x is exceptionally low

As of 2026, Cottonwood city, Minnesota has a total population of 1,120, the 345th largest city in Minnesota, with a median household income of $90,750, which is 4% higher than the state average. The poverty rate is 8.2%.

Key Takeaways

Cottonwood city Quick Facts

Population 1,120
Median Household Income $90,750
Median Home Value $180,200
Poverty Rate 8.2%
Unemployment Rate 3.6%
Median Age 37.0 years
Homeownership Rate 78.9%
Affordability Ratio 2.0x
Bachelor's Degree or Higher 27.1%
High School Graduation Rate 98.0%
Diversity Index 12/100
Population 1,120 345th of 913
Median Income $90,750 top 30%
Poverty Rate 8.2% 34% lower national
Median Home Value $180,200 average

How Cottonwood city Compares

Economy & Housing

Employment

3.6% Unemployment Rate State: 3.9% | National: 5.2%
71.0% Labor Force Participation

Housing Overview

Owner 78.9%
Renter 21.1%
Affordability Index Very Affordable
2.0x home value to income ratio

People & Demographics

Diversity Index

12out of 100
Very Low Diversity

A less diverse community where one racial or ethnic group represents a large majority.

State average: 40 | National average: 60

Education

Cottonwood city Rankings in Minnesota

#345 Population of 913
#192 Median Income of 913
#270 Education of 913
#391 Home Value of 913

Other Cities in Lyon County

CityPopulationMedian IncomePovertyHome Value
Marshall city 13,880 $64,636 16.9% $198,900
Tracy city 1,869 $60,682 9.5% $110,900
Minneota city 1,531 $72,396 5.6% $158,100
Lynd city 570 $79,375 32.9% $170,000
Balaton city 544 $54,091 13.3% $85,000
Ghent city 455 $72,500 7.0% $154,700
Russell city 323 $62,143 4.6% $101,700
Taunton city 140 $46,875 20.0% $74,600
Garvin city 90 $41,000 23.3% $50,000
Florence city 29 $42,500 13.8% $158,300

Cities Similar to Cottonwood city

These cities in the same state have comparable population and economic profiles.

CityPopulationMedian IncomeHome ValueBachelor's+Poverty
Lake Shore city1,117$96,923$532,50039.6%6.5%
Elgin city1,147$87,000$218,20023.5%6.5%
Shafer city1,151$96,042$225,70016.0%7.1%
Lake St. Croix Beach city1,106$100,134$334,60043.6%12.1%
Madison Lake city1,178$84,833$281,30036.9%6.7%

Population Overview

Cottonwood city is a small community located in Minnesota, within Lyon County. The total population is 1,120. It ranks as the 345th most populous out of 913 cities and towns in Minnesota.

Age Demographics

The median age in Cottonwood city is 37.0 years. This is 4% lower than the state median of 38.6 years.

Economy, Income & Housing

The median household income in Cottonwood city is $90,750. This is 4% higher than the state median of $87,556. Compared to the national median of $78,538, household income here is 16% higher. The poverty rate stands at 8.2%. This is 11% lower than the state poverty rate of 9.2%. The unemployment rate is 3.6%. This is 8% lower than the state rate of 3.9%. The median home value is $180,200. Housing costs are 41% lower than the state median of $305,500. With a home-value-to-income ratio of just 2.0x, Cottonwood city is one of the most affordable housing markets in the area. 78.9% of occupied housing units are owner-occupied. This homeownership rate is 9% higher than the state average of 72.4%.

Race & Ethnicity

Cottonwood city has a predominantly White (non-Hispanic) population, comprising 93.5% of all residents. Hispanic or Latino residents account for 3.2%. The Asian population (0.1%) is well below the state average of 5.0%.

Education

27.1% of residents aged 25 and older hold a bachelor's degree or higher. This is 30% lower than the state rate of 38.8%. Nationally, 35.0% of adults hold at least a bachelor's degree. The high school graduation rate (or equivalent) is 98.0%.

Data Sources & Methodology

All demographic data for Cottonwood city, Minnesota is sourced from the U.S. Census Bureau's American Community Survey (ACS) 5-Year Estimates (2019-2023). The ACS collects data from approximately 3.5 million households annually, providing reliable estimates for communities of all sizes. Comparisons are made against Minnesota state averages and national averages calculated from the same dataset. Rankings reflect the city's position among all 913 Census-designated places in Minnesota. For official data, visit data.census.gov.

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Frequently Asked Questions

What is the population of Cottonwood city, Minnesota?

Cottonwood city, Minnesota has a population of 1,120 according to the most recent U.S. Census ACS 5-Year Estimates.

What is the median household income in Cottonwood city, MN?

The median household income in Cottonwood city is $90,750, which is 16% higher the national median of $78,538.

What is the poverty rate in Cottonwood city, MN?

The poverty rate in Cottonwood city is 8.2%. This means approximately 91 residents live below the federal poverty line.

What is the racial makeup of Cottonwood city, Minnesota?

Cottonwood city's population is 93.5% White, 0.0% Black, 3.2% Hispanic/Latino, and 0.1% Asian.

What is the median home value in Cottonwood city, MN?

The median home value in Cottonwood city is $180,200. The home-value-to-income ratio is 2.0x.

How educated is Cottonwood city, Minnesota?

27.1% of adults (25+) in Cottonwood city hold a bachelor's degree or higher, and 7.0% hold a graduate or professional degree.