According to the United States Census Bureau, the CDP has a total area of 0.9 square miles (2.4 km²), all of it land.
As of the census of 2000, there were 1051 people and 517 households in the CDP. The population density was 1,133.0 people per square mile (436.3/km²). There were 173 housing units at an average density of 189.3/sq mi (214.6/km²). The racial makeup of the CDP was 90.58% White, 0.67% African American, 0.57% Native American, 1.43% Asian, 0.10% Pacific Islander, 3.33% from other races, and 3.33% from two or more races. Hispanic or Latino of any race were 7.14% of the population.
There were 393 households out of which 29.3% had children under the age of 18 living with them, 53.2% were married couples living together, 8.7% had a female householder with no husband present, and 34.9% were non-families. 25.4% of all households were made up of individuals and 4.6% had someone living alone who was 65 years of age or older. The average household size was 2.57 and the average family size was 3.06.
In the CDP the population was spread out with 26.5% under the age of 18, 10.8% from 18 to 24, 29.7% from 25 to 44, 23.3% from 45 to 64, and 9.6% who were 65 years of age or older. The median age was 34 years. For every 100 females there were 104.1 males. For every 100 females age 18 and over, there were 97.4 males.
The median income for a household in the CDP was $48,102, and the median income for a family was $55,625. Males had a median income of $35,833 versus $26,346 for females. The per capita income for the CDP was $21,488. About 8.3% of families and 15.8% of the population were below the poverty line, including 20.0% of those under age 18 and none of those age 65 or over.
In the state legislature Felton is located in the 15th Senate District, represented by Republican Abel Maldonado, and in the 27th Assembly District, represented by Democrat John Laird. Federally, Felton is located in California's 14th congressional district, which has a Cook PVI of D +18 and is represented by Democrat Anna Eshoo.
Named for John Brooks Felton, a former Oakland, California mayor, a judge and a Bay Area investor in his day, the town is a historic logging community which served as the end of the Boulder Creek log flume.
Nearby Mount Hermon was the site of California's first water-powered sawmill (circa 1841).
In 1875, the Santa Cruz & Felton Railroad rolled into town. By 1880, a second rail line came down from Alameda, California and San Jose, California. A new depot was constructed at "New Felton" using salvaged materials from a dismantled portion of the Boulder Creek flume. The railroads, limekilns and forest in this area provided a majority of the repair materials for the great 1906 San Francisco earthquake. The "broad gauge" came into Felton by 1909.
In 1927, the Felton community of Lompico, California was established.
In 1963, the steam-powered Roaring Camp & Big Trees tourist railroad began operations on the Big Trees Ranch out of the old Felton depot. They later constructed a replicated logging camp and another depot further down the property, and in 1985, took over operations on the old SPC/Southern Pacific line to Santa Cruz. Roaring Camp is a re-creation of an 1880s logging camp and home to the original South Pacific Coast (later Southern Pacific) Felton depot and freight shed, as well as two unique railroads: the Roaring Camp and Big Trees Narrow Gauge Railroad (a steam-powered line up Bear Mountain) and the Santa Cruz, Big Trees and Pacific Railway.