Cottonwood is located at(31.053646, -85.302409).
According to the U.S. Census Bureau, the town has a total area of 5.5 square miles (14 km2), of which, 5.5 square miles (14 km2) of it is land and 0.04 square miles (0.10 km2) of it (0.36%) is water.
As of the census of 2000, there were 1,170 people, 485 households, and 323 families residing in the town. Thepopulation density was 212.9 people per square mile (82.1/km2). There were 548 housing units at an average density of 99.7 per square mile (38.5/km2). The racial makeup of the town was 69.06% White, 29.06% Black or African American, 0.68% Native American, and 1.20% from two or more races. 1.97% of the population were Hispanic or Latino of any race.
There were 485 households out of which 29.3% had children under the age of 18 living with them, 48.2% were married couples living together, 14.2% had a female householder with no husband present, and 33.2% were non-families. 30.5% of all households were made up of individuals and 15.5% had someone living alone who was 65 years of age or older. The average household size was 2.41 and the average family size was 3.01.
In the town the population was spread out with 26.5% under the age of 18, 7.1% from 18 to 24, 25.0% from 25 to 44, 24.5% from 45 to 64, and 16.9% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 90.6 males. For every 100 females age 18 and over, there were 86.1 males.
The median income for a household in the town was $21,452, and the median income for a family was $32,065. Males had a median income of $25,833 versus $15,515 for females. Theper capita income for the town was $13,111. About 18.1% of families and 27.2% of the population were below the poverty line, including 28.8% of those under age 18 and 42.1% of those age 65 or over.