Dagsboro, incorporated in the early 1900s, is a quiet town of 713, that is energized in summer by Delaware Route 26 beach traffic. The town, in the Indian River School District, was founded in 1747 and has been known as Blackfoot Town, Dagsbury and Dagsborough. It was named for General John Dagworthy, a Brigadier General of the Sussex County Militia during the American Revolutionary War. Dagsboro is home to Prince George's Chapel, an historic church maintained by the state of Delaware as a museum.
According to the United States Census Bureau, the town has a total area of 2.3 square miles (3.3 km²), all of it land.
John M. Clayton was born July 24, 1796, in Dagsboro, Delaware, son of James and Sarah Middleton Clayton. His uncle, Dr. Joshua Clayton, was a former Governor of Delaware, a U.S. Senator and U.S. Secretary of State under Taylor.
There were 226 households out of which 28.8% had children under the age of 18 living with them, 49.6% were married couples living together, 7.5% had a female householder with no husband present, and 37.6% were non-families. 31.0% of all households were made up of individuals and 17.3% had someone living alone who was 65 years of age or older. The average household size was 2.30 and the average family size was 2.89.
In the town the population was spread out with 22.2% under the age of 18, 7.5% from 18 to 24, 28.9% from 25 to 44, 26.0% from 45 to 64, and 15.4% who were 65 years of age or older. The median age was 38 years. For every 100 females there were 88.7 males. For every 100 females age 18 and over, there were 84.5 males.
The median income for a household in the town was $37,596, and the median income for a family was $43,750. Males had a median income of $36,667 versus $27,250 for females. The per capita income for the town was $21,322. About 6.2% of families and 5.9% of the population were below the poverty line, including 5.8% of those under age 18 and 9.1% of those age 65 or over.