The area was named Farm-Raised Catfish Capital of the World in 1976 by then Governor Cliff Finch, since it produces more farm-raised catfish than any other U.S. county. 40,000 acres (162 km) of the county are underwater, used to grow catfish. About 60% of U.S. farm-raised catfish are grown within a 65 mile (100 km) radius of Belzoni. However, the title "Catfish Capital" is not only claimed by Belzoni, but has also been claimed by Savannah, Tennessee, and Des Allemands, Louisiana. However, Belzoni is known for the World Catfish Festival held every April.
As of the census of 2000, there were 2,663 people, 934 households, and 640 families residing in the city. The population density was 2,777.8 people per square mile (1,071.0/km). There were 1,018 housing units at an average density of 1,061.9/sq mi (409.4/km). The racial makeup of the city was 30.49% White, 68.08% African American, 0.04% Native American, 0.64% Asian, 0.60% from other races, and 0.15% from two or more races. Hispanic or Latino of any race were 1.35% of the population.
There were 934 households out of which 33.8% had children under the age of 18 living with them, 35.3% were married couples living together, 28.6% had a female householder with no husband present, and 31.4% were non-families. 28.2% of all households were made up of individuals and 11.8% had someone living alone who was 65 years of age or older. The average household size was 2.83 and the average family size was 3.49.
In the city the population was spread out with 32.2% under the age of 18, 11.4% from 18 to 24, 27.3% from 25 to 44, 17.8% from 45 to 64, and 11.3% who were 65 years of age or older. The median age was 30 years. For every 100 females there were 85.7 males. For every 100 females age 18 and over, there were 77.5 males.
The median income for a household in the city was $20,690, and the median income for a family was $25,521. Males had a median income of $26,466 versus $15,833 for females. The per capita income for the city was $13,022. About 29.3% of families and 35.0% of the population were below the poverty line, including 47.4% of those under age 18 and 27.3% of those age 65 or over.