ZIP Code 56229 — Cottonwood city, MN Demographics & Data

ZIP code 56229 covers Cottonwood, MN in Lyon County with a population of about 1,729.

At a glance, the area shows median age of 41.5 versus a U.S. median of about 38.9.

It sits in telephone area code 507; U.S. House district MN-7; the MINNEAPOLIS - ST. PAUL media market.

Median household income in ZIP 56229 is about $99,821 — about 33% above the U.S. median ($75,149).

On socioeconomic markers, US5 shows a poverty rate of 7.0%; unemployment rate near 6.3%; 26.8% of adults with a bachelor’s degree or higher (about 6.9 points below the national share (33.7%)).

Labor and commute patterns include leading industry context around Finance and insurance, Healthcare, and Agriculture; about 10.9% of workers reporting work-from-home (about 4.3 points below the U.S. share (15.2%)); a mean commute of about 180.0 minutes (U.S. average near 26.8).

Median home value is about $198,400 — about 43% below the U.S. median home value ($348,079).

Housing tenure and rents show median gross rent around $686 (about 41% below the U.S. median rent ($1,163)), and owner-occupancy near 83.7% (about 18.3 points above the national owner-occupancy rate (65.4%)).

To comfortably buy a median-priced home in ZIP 56229 in Cottonwood, MN, a household would need roughly $55,000 in annual income under a 20% down, 30-year loan at 6.8% (illustrative), keeping housing costs near 28% of income. Estimated monthly PITI is about $1,274. That sits below the local median household income ($99,821), suggesting the typical household income is closer to a workable buy-in level under these assumptions. Rates, taxes, insurance, and HOA fees vary — treat this as a planning estimate, not a lender quote.

FEMA’s National Risk Index rates natural-hazard risk for Cottonwood city, MN as Relatively Low (composite score 43.5), which is near the middle of the national distribution. The strongest component scores on US5 are flood (57.2) and wildfire (17.3). These scores are county-linked NRI values published for planning context — all ZIP codes in the same county share the same composite score on US5. Useful when comparing insurance and disaster exposure across areas, not a substitute for a parcel-level flood or fire determination.

Climate normals for Cottonwood city, MN show little to no average snow and around 28.9 inches of annual precipitation.

IRS migration statistics show a net inflow of about 123 for ZIP 56229 (Cottonwood city, MN) on US5’s published series — a signal of people/tax filers moving in relative to those leaving. Inflows often track job growth, housing demand, or lifestyle migration; treat the figure as a directional indicator rather than a precise headcount.