As of the census of 2000, there were 26,500 people, 10,028 households, and 6,728 families residing in the city. The population density was 6,642.7 people per square mile (2,564.3/km²). There were 10,381 housing units at an average density of 2,602.2/sq mi (1,004.5/km²). The racial makeup of the city was 60.19% White, 27.07% African American, 0.16% Native American, 3.58% Asian, 0.05% Pacific Islander, 5.62% from other races, and 3.33% from two or more races. Hispanic or Latino of any race were 13.87% of the population.
There were 10,028 households out of which 30.0% had children under the age of 18 living with them, 46.7% were married couples living together, 15.6% had a female householder with no husband present, and 32.9% were non-families. 28.0% of all households were made up of individuals and 11.7% had someone living alone who was 65 years of age or older. The average household size was 2.63 and the average family size was 3.24.
In the city the population was spread out with 23.9% under the age of 18, 7.8% from 18 to 24, 32.0% from 25 to 44, 21.8% from 45 to 64, and 14.5% who were 65 years of age or older. The median age was 37 years. For every 100 females there were 91.2 males. For every 100 females age 18 and over, there were 86.5 males.
The median income for a household in the city was $50,729, and the median income for a family was $61,931. Males had a median income of $41,047 versus $32,091 for females. The per capita income for the city was $22,481. About 5.4% of families and 7.1% of the population were below the poverty line, including 9.3% of those under age 18 and 8.2% of those age 65 or over.
Rahway is served by U.S. Route 1/9, and Route 27. The city is sandwiched in between the Garden State Parkway and the New Jersey Turnpike, which are each located about two miles outside of the city limits.
Local public transportation is provided by New Jersey Transit with bus service to Elizabeth, Perth Amboy and Newark via the 62 bus.
New Jersey Transit bus 115 provides local service and interstate service to the Port Authority Bus Terminal in Midtown Manhattan.
Rahway Train Station serves New Jersey Transit's North Jersey Coast Line and Northeast Corridor Line. The City of Rahway and New Jersey Transit helped fund a US$16 million renovation for the station in 1999 and a public plaza in front of the station was completed in 2001. The station has spurred cleanup and revitalization downtown. A new US$11.2 million 524-space parking deck opened across the street from the station in January 2005, helping train commuters and allowing the city to transform old parking lot space into new buildings and residences.
Newark Liberty International Airport is approximately 20 minutes away.