What is the Population & Steets in Gracewoood City? The population of Gracewood City, Georgia, is approximately 9500 people. The population is spread over 0.91 square miles. The City has a median household income of $47,465 and expenses per capita are about 4% lower than the national average. In the city, 59% of households rent, while 32% are married and have at least one child. Only 8% of adult residents have a bachelor's degree.