Fairhope is a principal city of the Daphne–Fairhope–Foley Micropolitan Statistical Area, which includes all of Baldwin County.
As of the census of 2000, there were 12,480 people, 5,345 households, and 3,575 families residing in the city. The population density was 1,135.1 people per square mile (438.1/km²). There were 6,000 housing units at an average density of 545.7/sq mi (210.6/km²). The racial makeup of the city was 90.22% White, 7.79% Black, 0.20% Native American, 0.62% Asian, 0.04% Pacific Islander, 0.21% from other races, and 0.93% from two or more races. 1.04% of the population were Hispanic or Latino of any race.
There were 5,345 households out of which 27.0% had children under the age of 18 living with them, 54.8% were married couples living together, 10.1% had a female householder with no husband present, and 33.1% were non-families. 30.3% 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 2.27 and the average family size was 2.83.
In the city the population was spread out with 21.6% under the age of 18, 5.4% from 18 to 24, 23.8% from 25 to 44, 25.6% from 45 to 64, and 23.7% who were 65 years of age or older. The median age was 44 years. For every 100 females there were 83.3 males. For every 100 females age 18 and over, there were 78.3 males.
The median income for a household in the city was $42,913, and the median income for a family was $56,976. Males had a median income of $41,692 versus $27,959 for females. The per capita income for the city was $25,237. About 4.9% of families and 7.5% of the population were below the poverty line, including 7.3% of those under age 18 and 9.9% of those age 65 or over.