As of the census of 2000, there were 2,860 people, 1,014 households, and 701 families residing in the city. The population density was 3,004.1 people per square mile (1,162.4/km²). There were 1,089 housing units at an average density of 1,143.9/sq mi (442.6/km²). The racial makeup of the city was 81.68% White, 0.56% African American, 1.29% Native American, 1.71% Asian, 0.24% Pacific Islander, 9.86% from other races, and 4.65% from two or more races. Hispanic or Latino of any race were 15.21% of the population.
There were 1,014 households out of which 38.6% had children under the age of 18 living with them, 45.9% were married couples living together, 16.8% had a female householder with no husband present, and 30.8% were non-families. 23.9% of all households were made up of individuals and 6.8% had someone living alone who was 65 years of age or older. The average household size was 2.76 and the average family size was 3.22.
In the city the population was spread out with 28.6% under the age of 18, 10.2% from 18 to 24, 32.8% from 25 to 44, 19.7% from 45 to 64, and 8.6% who were 65 years of age or older. The median age was 31 years. For every 100 females there were 102.7 males. For every 100 females age 18 and over, there were 97.2 males.
The median income for a household in the city was $43,384, and the median income for a family was $48,167. Males had a median income of $31,577 versus $25,500 for females. The per capita income for the city was $17,833. About 6.9% of families and 8.3% of the population were below the poverty line, including 7.9% of those under age 18 and 2.9% of those age 65 or over.
TriMet route 77 Broadway/Halsey runs through town with several stops on NE Halsey Street. Due to the steep cliff of the Columbia River Gorge on NE 238th, connection to the MAX Light Rail system is made at 82nd Avenue in Portland rather than Cleveland Avenue in neighboring Gresham.
The city has one exit, Exit 16, off Interstate 84 and U.S. Route 30. I-84 continues through Fairview to the west and Troutdale to the east. US 30 splits in Wood Village, with the main line following the route of I-84. US 30 Bypass starts on NE 238th Avenue, before turning west at NE Sandy Blvd. and continuing into Gresham.
Because of its location inside the Metro Region, all streets are named using Portland quadrant conventions, despite being about 15 miles away from the city. Because the entire City of Wood Village is north of Portland's Burnside Street and east of the Willamette River, all streets are in "Northeast" Wood Village, regardless of their proximity to the center of town.