There were 291 households out of which 21.3% had children under the age of 18 living with them, 56.4% were married couples living together, 4.8% had a female householder with no husband present, and 34.4% were non-families. 28.5% of all households were made up of individuals and 10.7% had someone living alone who was 65 years of age or older. The average household size was 2.23 and the average family size was 2.73.
In the town the population was spread out with 18.2% under the age of 18, 5.5% from 18 to 24, 24.7% from 25 to 44, 33.4% from 45 to 64, and 18.2% who were 65 years of age or older. The median age was 46 years. For every 100 females there were 114.2 males. For every 100 females age 18 and over, there were 113.3 males.
The median income for a household in the town was $42,313, and the median income for a family was $48,250. Males had a median income of $31,346 versus $21,406 for females. The per capita income for the town was $23,617. About 6.3% of families and 10.6% of the population were below the poverty line, including 11.0% of those under age 18 and 12.0% of those age 65 or over.
Frequently featured as a backdrop for commercials and movies, Grafton, Vermont is a charming, "almost too perfect" village with a unique history. Originally called Thomlinson, renaming rights were auctioned in 1791. The high bidder, who reportedly offered "five dollars and a jug of rum," changed the name to Grafton after his home town of Grafton, Massachusetts. Possibly as a result of having celebrated a bit too much with the rum (some say it was hard cider), the money was never collected.
In the early 19th century, sheep raising became popular and multiple woolen mills sprung up along the branches of the Saxtons River. The town became a notable stagecoach hub for traffic across the Green Mountains into Albany, New York. One inn from that era, "the Old Tavern", was founded in 1801. It remains one of the oldest continually operating hotels in the United States.
The town suffered severe losses during the American Civil War and local cemeteries in the village feature many tombstones of casualties from the Battle of Gettysburg. After the war, the community slowly lost most of its population and became a quiet backwater for nearly a century.
In the 1960's The Windham Foundation undertook an effort to restore the village. It purchased the Old Tavern and many residences in the area. The Foundation also founded a craft cheese business and set up summer camps and a cross country ski center. The restoration efforts attracted new residents from metropolitan New York and Boston.
In recent years, the village has grown into a genteel, tourist-oriented community featuring a mix of artists, wealthy retirees and second home residents who live side-by-side with Vermont farmers, mechanics and entrepreneurs whose roots go back to the town's original founding. Many of them can be seen at the village Green watching the Grafton Cornet Band perform on Sundays, just as they have for every summer since 1868.