Hobson City is an Alabama's first all black city, according to, The Progress and Achievements of the Negro In The Art of Self Government a book published in 1947 by Ross Black, a white lawyer.
As of the census of 2000, there were 878 people, 363 households, and 242 families residing in the town. The population density was 802.8 people per square mile (311.0/km²). There were 415 housing units at an average density of 379.5/sq mi (147.0/km²). The racial makeup of the town was 6.15% White, 92.71% Black or African American, 0.23% from other races, and 0.91% from two or more races. 0.57% of the population were Hispanic or Latino of any race.
There were 363 households out of which 30.0% had children under the age of 18 living with them, 26.2% were married couples living together, 35.3% had a female householder with no husband present, and 33.1% were non-families. 29.8% of all households were made up of individuals and 10.5% had someone living alone who was 65 years of age or older. The average household size was 2.42 and the average family size was 2.99.
In the town the population was spread out with 28.6% under the age of 18, 8.2% from 18 to 24, 29.0% from 25 to 44, 23.0% from 45 to 64, and 11.2% who were 65 years of age or older. The median age was 35 years. For every 100 females there were 76.0 males. For every 100 females age 18 and over, there were 71.3 males.
The median income for a household in the town was $17,589, and the median income for a family was $20,368. Males had a median income of $21,667 versus $19,583 for females. The per capita income for the town was $8,992. About 30.7% of families and 30.2% of the population were below the poverty line, including 42.7% of those under age 18 and 15.5% of those age 65 or over.
According to Town Hall records, much of the area now included in the corporate limits of the Town of Hobson City was once within the City of Oxford, Alabama. During the late 1800s, the area was known as Mooree Quarter. The black vote from that area was a controlling factor during municipal elections. An account provided by an early settler of the community has been passed down through the years. In that account, a black person was elected as Justice of the Peace. As a result and in keeping with campaign promises, an Oxford mayor went to the state capitol and had the corporate boundaries of Oxford redrawn to exclude Mooree Quarter and the black vote. Approximately three years later on August 16, 1899, the Town incorporated. Records from an Alabama newspaper, "The Peoples' Journal", described the municipality as "the only municipality controlled and governed entirely by colored people anywhere in the United States". The newspaper further commented that "The whole country will doubtless be interested in the result of this experiment". Under the leadership of the first mayor, S. L. Davis and the first police chief, James Duran, police protection was restored to the area. The Town was named after Richard P. Hobson, a black representative in the Alabama Legislature and a Naval hero. More than a century has passed since incorporation. The Town recently had buildings placed on the historic register and is currently in the process of qualifying other buildings as well. During November, 2008, Alberta C. McCrory was sworn in as the 2008-2012 mayor.