The United States Census Bureau estimates that there are 3,599 people living in McGehee City. According to the most recent census, the most common racial or ethnic groups in the city are White, Black or African American, and Hispanic. The US Census Bureau uses a set of thresholds that indicate poverty based on the size of a family. For a family to qualify as low-income, the total income must be below the income threshold for all members.
The railroad and agriculture helped the town grow. In 1879, the city was home to the first post office and the first postmaster was named William McGehee. After the railroad stopped running, the "round houses" of the city became a thing of the past. In 1910, the city's population increased significantly. By that time, the railroad had moved many of its workers and shops to nearby cities, and the population began to grow.
In 2019, the median property value of a home in McGehee, AR decreased from $85,400 to $79,900, an increase of 6.88%. As a result, the town's homeownership rate is slightly lower than the national average of 64.1%. The average commute time is 16.7 minutes. The average household has two cars. After the recession, McGehee's population declined significantly.