Granbury and Hood County are rich in Texas history. David (Davy) Crockett's wife, Elizabeth, settled in Hood County following the Texas Revolution against Mexico. Crockett, as well as other Alamo participants, received land grants. The Crockett family received land in what is now Hood County. Elizabeth Crockett is buried in Acton State Historic Site, the smallest state park in Texas. A large statue of Elizabeth Crockett marks her grave site. Several of Crockett's descendants still reside in Hood County.
Jesse James is reported to be buried in the City of Granbury Cemetery. Contrary to the popular legend about James, it is believed by many, including many of his adult grandchildren, that James changed his name and lived to old age in Granbury.
John Wilkes Booth, according to Granbury legend, moved to Hood County and assumed the name of John St. Helen. There is a store on the historic town square that is still called St. Helen's.
According to the United States Census Bureau, the city has a total area of 6.1 square miles (15.9 km²), of which, 5.5 square miles (14.3 km²) of it is land and 0.6 square miles (1.5 km²) of it (9.64%) is water.
There were 2,391 households out of which 27.0% had children under the age of 18 living with them, 48.4% were married couples living together, 9.5% had a female householder with no husband present, and 39.0% were non-families. 34.9% of all households were made up of individuals and 18.7% had someone living alone who was 65 years of age or older. The average household size was 2.20 and the average family size was 2.83.
In the city the population was spread out with 21.0% under the age of 18, 8.0% from 18 to 24, 25.6% from 25 to 44, 21.9% from 45 to 64, and 23.4% who were 65 years of age or older. The median age was 42 years. For every 100 females there were 83.4 males. For every 100 females age 18 and over, there were 77.1 males.
The median income for a household in the city was $35,952, and the median income for a family was $45,451. Males had a median income of $34,625 versus $25,721 for females. The per capita income for the city was $19,801. About 5.0% of families and 9.6% of the population were below the poverty line, including 4.6% of those under age 18 and 14.9% of those age 65 or over.