It was named after Chatham, Ontario, Canada, the town where the lumber company Sutherland Innis was headquartered
As of the census of 2000, there were 231 people, 98 households, and 64 families residing in the village. The population density was 87.6 per square mile (33.8/km²). There were 116 housing units at an average density of 44.0/sq mi (17.0/km²). The racial makeup of the village was 94.37% White, 4.76% Native American, and 0.87% from two or more races. 58.5% were of Finnish, 12.5% German, 6.0% French and 5.5% English ancestry according to Census 2000. 92.3% spoke English and 7.7% Finnish as their first language.
There were 98 households out of which 31.6% had children under the age of 18 living with them, 56.1% were married couples living together, 8.2% had a female householder with no husband present, and 33.7% were non-families. 29.6% of all households were made up of individuals and 13.3% had someone living alone who was 65 years of age or older. The average household size was 2.36 and the average family size was 2.92.
In the village the population was spread out with 24.2% under the age of 18, 9.5% from 18 to 24, 22.5% from 25 to 44, 29.0% from 45 to 64, and 14.7% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 87.8 males. For every 100 females age 18 and over, there were 88.2 males.
The median income for a household in the village was $31,406, and the median income for a family was $37,188. Males had a median income of $28,125 versus $19,375 for females. The per capita income for the village was $14,266. About 4.9% of families and 8.4% of the population were below the poverty line, including 4.7% of those under the age of eighteen and 20.0% of those sixty five or over.