Douglas is located at(34.171631, -86.319967).
According to the U.S. Census Bureau, the town has a total area of 3.4 square miles (8.8 km2), of which 3.4 square miles (8.8 km2) is land and 0.24% is water.
At the 2000 census, there were 530 people, 213 households and 158 families residing in the town. The population density was 171.0 per square mile (66.0/km2). There were 231 housing units at an average density of 74.5 per square mile (28.8/km2). The racial makeup of the town was 96.79%White, 0.57% Native American, 0.19% Asian, 2.08% from other races, and 0.38% from two or more races. 2.64% of the population were Hispanic orLatino of any race.
There were 213 households of which 35.7% had children under the age of 18 living with them, 57.7% were married couples living together, 13.6% had a female householder with no husband present, and 25.8% were non-families. 24.9% of all households were made up of individuals and 12.2% had someone living alone who was 65 years of age or older. The average household size was 2.49 and the average family size was 2.95.
Age distribution was 27.4% under the age of 18, 10.2% from 18 to 24, 29.1% from 25 to 44, 23.6% from 45 to 64, and 9.8% who were 65 years of age or older. The median age was 32 years. For every 100 females there were 99.2 males. For every 100 females age 18 and over, there were 92.5 males.
The median household income was $33,594, and the median family income was $36,000. Males had a median income of $32,143 versus $19,375 for females. The per capita income for the town was $22,410. About 8.8% of families and 9.8% of the population were below the poverty line, including 15.9% of those under age 18 and 9.8% of those age 65 or over.