As of the census of 2000, there were 981 people, 339 households, and 240 families residing in the city. The population density was 1,803.4 people per square mile (701.4/km²). There were 392 housing units at an average density of 720.6/sq mi (280.3/km²). The racial makeup of the city was 41.79% White, 0.31% African American, 54.54% Native American, 1.22% from other races, and 2.14% from two or more races. Hispanic or Latino of any race were 3.26% of the population.
There were 339 households out of which 39.5% had children under the age of 18 living with them, 39.2% were married couples living together, 25.4% had a female householder with no husband present, and 29.2% were non-families. 26.3% of all households were made up of individuals and 15.6% had someone living alone who was 65 years of age or older. The average household size was 2.75 and the average family size was 3.23.
In the city the population was spread out with 33.1% under the age of 18, 8.3% from 18 to 24, 23.4% from 25 to 44, 16.8% from 45 to 64, and 18.3% who were 65 years of age or older. The median age was 33 years. For every 100 females there were 91.2 males. For every 100 females age 18 and over, there were 84.8 males.
The median income for a household in the city was $24,500, and the median income for a family was $27,222. Males had a median income of $23,558 versus $21,750 for females. The per capita income for the city was $11,459. About 21.6% of families and 27.7% of the population were below the poverty line, including 35.6% of those under age 18 and 20.3% of those age 65 or over.
There are only two schools in Parshall, the public elementary school and the public high school.