Gatesville is the home of the women's maximum security unit for the Texas Department of Criminal Justice (TDCJ), which includes the women's death row. Several other TDCJ prisons are located in and around Gatesville. It is located on the northern edge of Fort Hood.
There were 2,640 households out of which 32.5% had children under the age of 18 living with them, 49.2% were married couples living together, 13.3% had a female householder with no husband present, and 33.6% were non-families. 29.9% of all households were made up of individuals and 15.2% had someone living alone who was 65 years of age or older. The average household size was 2.46 and the average family size was 3.04.
In the city the population was spread out with 11.7% under the age of 18, 10.3% from 18 to 24, 53.9% from 25 to 44, 16.3% from 45 to 64, and 7.7% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 63.8 males. For every 100 females age 18 and over, there were 59.6 males.
The median income for a household in the city was $29,534, and the median income for a family was $36,543. Males had a median income of $30,625 versus $17,073 for females. The per capita income for the city was $11,152. About 12.4% of families and 14.3% of the population were below the poverty line, including 17.7% of those under age 18 and 14.9% of those age 65 or over.