In Romeo's early days, it served as a hub for the timber industry, and many wealthy timber families resided there. Dozens of stately Victorian mansions survive, most of which have been purchased and restored by Detroit metro area commuters. Romeo is distinct in the area for having a fairly robust traditional downtown which has never burned. Because of this, there are stores and restaurants downtown that have original tin ceilings from as long ago as the Civil War. Romeo was also an early participant in the automobile industry, serving as home to the car manufacturer Detroit from 1904 until 1908.
Romeo is known for the Peach Festival, which takes place every year during Labor Day Weekend. Romeo is noted as being the hometown of rocker Kid Rock, satirist/actor Stoney Burke, horrorcore rapper Blaze Ya Dead Homie, roots-rocker Scott Harrison and folk artist Barbara Bourgeau Richards.
As of the census of 2000, there were 3,721 people, 1,528 households, and 993 families residing in the village. The population density was 1,842.8 per square mile (711.2/km²). There were 1,605 housing units at an average density of 794.9/sq mi (306.8/km²). The racial makeup of the village was 92.66% White, 4.35% African American, 0.16% Native American, 0.40% Asian, 0.11% Pacific Islander, 0.67% from other races, and 1.64% from two or more races. Hispanic or Latino of any race were 2.74% of the population.
There were 1,528 households out of which 33.3% had children under the age of 18 living with them, 48.2% were married couples living together, 13.5% had a female householder with no husband present, and 35.0% were non-families. 31.3% of all households were made up of individuals and 13.2% had someone living alone who was 65 years of age or older. The average household size was 2.40 and the average family size was 3.04.
In the village the population was spread out with 26.1% under the age of 18, 8.2% from 18 to 24, 30.1% from 25 to 44, 21.4% from 45 to 64, and 14.2% who were 65 years of age or older. The median age was 36 years. For every 100 females there were 87.2 males. For every 100 females age 18 and over, there were 82.5 males.
The median income for a household in the village was $48,015, and the median income for a family was $60,179. Males had a median income of $51,875 versus $27,696 for females. The per capita income for the village was $22,588. About 3.2% of families and 3.9% of the population were below the poverty line, including 6.5% of those under age 18 and 3.9% of those age 65 or over.