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While Tillamook derives some income from tourists passing through on their way to the ocean beaches, its economy is firmly based on agriculture. The rich farmlands around the city are given to milk cattle, which provide the materials for the largest cheese factory, just north of the downtown on highway 101.
As of the census of 2000, there are 4,352 people, 1,758 households, and 1,105 families residing in the city. The population density is 1,091.1/km² (2,818.8/mi²). There are 1,898 housing units at an average density of 475.9/km² (1,229.3/mi²). The racial makeup of the city is 92.56% White, 0.16% African American, 1.22% Native American, 0.71% Asian, 0.16% Pacific Islander, 3.42% from other races, and 1.77% from two or more races. 11.12% of the population are Hispanic or Latino of any race.
There are 1,758 households out of which 33.3% have children under the age of 18 living with them, 44.7% are married couples living together, 12.5% have a female householder with no husband present, and 37.1% are non-families. 32.1% of all households are made up of individuals and 13.1% have someone living alone who is 65 years of age or older. The average household size is 2.46 and the average family size is 3.08.
In the city the population is spread out with 29.2% under the age of 18, 9.4% from 18 to 24, 28.1% from 25 to 44, 19.6% from 45 to 64, and 13.6% who are 65 years of age or older. The median age is 33 years. For every 100 females there are 96.0 males. For every 100 females age 18 and over, there are 92.1 males.
The median income for a household in the city is $29,875, and the median income for a family is $36,351. Males have a median income of $28,458 versus $20,801 for females. The per capita income for the city is $15,160. 15.4% of the population and 11.8% of families are below the poverty line. Out of the total people living in poverty, 18.2% are under the age of 18 and 14.8% are 65 or older.