Lexington is the principal city of the Lexington, Nebraska Micropolitan Statistical Area, which consists of Dawson and Gosper counties.
The town is noted for its relatively high proportion of Hispanic-Americans for central Nebraska (over 50% of the town population), reflected in the Spanish language-businesses in downtown and along U.S. 30.
The Heartland Museum of Military Vehicles is located in Lexington adjacent to I-80.
As of the census of 2000, there were 10,011 people, 3,095 households, and 2,237 families residing in the city. The population density was 3,401.7 people per square mile (1,314.7/km²). There were 3,322 housing units at an average density of 1,128.8/sq mi (436.3/km²). The racial makeup of the city was 64.20% White, 0.44% African American, 1.17% Native American, 1.10% Asian, 0.02% Pacific Islander, 30.78% from other races, and 2.30% from two or more races. Hispanic or Latino of any race were 51.15% of the population.
There were 3,095 households out of which 43.1% had children under the age of 18 living with them, 57.0% were married couples living together, 9.5% had a female householder with no husband present, and 27.7% were non-families. 21.8% of all households were made up of individuals and 11.1% had someone living alone who was 65 years of age or older. The average household size was 3.14 and the average family size was 3.65.
In the city the population was spread out with 32.6% under the age of 18, 10.2% from 18 to 24, 30.7% from 25 to 44, 16.1% from 45 to 64, and 10.4% who were 65 years of age or older. The median age was 30 years. For every 100 females there were 108.6 males. For every 100 females age 18 and over, there were 108.6 males.
The median income for a household in the city was $38,098, and the median income for a family was $43,571. Males had a median income of $25,207 versus $20,857 for females. The per capita income for the city was $14,148. About 10.7% of families and 12.9% of the population were below the poverty line, including 16.1% of those under age 18 and 11.5% of those age 65 or over.