Monteagle is most famous for the treacherous stretch of Interstate 24 that passes through the town.
According to the United States Census Bureau, the town has a total area of 21.4 km² (8.2 mi²). 21.1 km² (8.1 mi²) of it is land and 0.3 km² (0.1 mi²) of it is water. The total area is 1.33% water.
As of the census of 2000, there are 1,238 people, 477 households, and 321 families residing in the town. The population density is 58.7/km² (152.2/mi²). There are 701 housing units at an average density of 33.3/km² (86.2/mi²). The racial makeup of the town is 96.45% White, 1.37% African American, 0.32% Native American, 0.73% Asian, 0.00% Pacific Islander, 0.08% from other races, and 1.05% from two or more races. 0.48% of the population are Hispanic or Latino of any race.
There are 477 households out of which 26.0% have children under the age of 18 living with them, 49.3% are married couples living together, 15.5% have a female householder with no husband present, and 32.7% are non-families. 28.3% of all households are made up of individuals and 14.9% have someone living alone who is 65 years of age or older. The average household size is 2.33 and the average family size is 2.85.
In the town the population is spread out with 19.5% under the age of 18, 7.8% from 18 to 24, 23.0% from 25 to 44, 24.2% from 45 to 64, and 25.5% who are 65 years of age or older. The median age is 45 years. For every 100 females there are 89.3 males. For every 100 females age 18 and over, there are 80.6 males.
The median income for a household in the town is $24,464, and the median income for a family is $29,886. Males have a median income of $24,643 versus $17,708 for females. The per capita income for the town is $12,983. 25.6% of the population and 21.7% of families are below the poverty line. Out of the total people living in poverty, 42.4% are under the age of 18 and 17.6% are 65 or older.