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Allegan is located in the south-central portion of the county. To the west and northwest is the Allegan State Game Area for which the city is considered a gateway. In all other directions Allegan is surrounded by farmland.
The largest employer is the L. Perrigo Company, the largest maker of private label over-the-counter pharmaceuticals in the United States. The Perrigo company was founded here in 1887. In 2004 it employed 3,500 people in the United States, England and Mexico. There's also a Haworth furniture plant and many other small manufacturers. The city has a small general aviation airport with a paved runway.
Allegan is served by Michigan state highways M-40, M-222 and M-89.
According to the United States Census Bureau, the city is located at 42.53°N, 85.85°W, and has a total area of 11.2 km² (4.3 mi²). 9.9 km² (3.8 mi²) of it is land and 1.3 km² (0.5 mi²) of it is water. The total area is 11.81% water.
As of the census 2 of 2000, there are 4,838 people, 1,831 households, and 1,186 families residing in the city. The population density is 490.3/km² (1,270.9/mi²). There are 1,947 housing units at an average density of 197.3/km² (511.5/mi²). The racial makeup of the city is 91.44% White, 4.71% African American, 0.25% Native American, 0.64% Asian, 0.04% Pacific Islander, 1.34% from other racesThe United States Census Bureau uses the federal government's definitions of race when performing a census. These definitions have and may change between each census. The racial categories are officially described as follows:¹ The categories represent a s, and 1.57% from two or more races. 2.85% of the population are Hispanic or Latino of any race.
There are 1,831 households out of which 33.0% have children under the age of 18 living with them, 45.4% are married couples living together, 15.2% have a female householder with no husband present, and 35.2% are non-families. 30.7% of all households are made up of individuals and 12.6% 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 3.05.
In the city the population is spread out with 26.7% under the age of 18, 9.7% from 18 to 24, 28.4% from 25 to 44, 19.9% from 45 to 64, and 15.3% who are 65 years of age or older. The median age is 35 years. For every 100 females there are 96.7 males. For every 100 females age 18 and over, there are 93.0 males.
The median income for a household in the city is $39,539, and the median income for a family is $45,833. Males have a median income of $35,417 versus $25,669 for females. The per capita income for the city is $17,075. 13.5% of the population and 10.8% of families are below the poverty line. Out of the total population, 13.7% of those under the age of 18 and 13.1% of those 65 and older are living below the poverty line.