Shalimar is located at(30.444398, -86.581904).
According to the United States Census Bureau, the town has a total area of 0.3 square miles (0.78 km2), all land.
As of the census of 2000, there were 718 people, 288 households, and 209 families residing in the town. The population density was 2,441.6 inhabitants per square mile (955.9/km²). There were 311 housing units at an average density of 1,057.6 per square mile (414.1/km²). The racial makeup of the town was 89.42% White, 5.85% African American, 0.42% Native American, 2.51% Asian, 0.84% from other races, and 0.97% from two or more races. Hispanic or Latino of any race were 1.81% of the population.
There were 288 households out of which 31.9% had children under the age of 18 living with them, 64.6% were married couples living together, 5.6% had a female householder with no husband present, and 27.1% were non-families. 21.5% of all households were made up of individuals and 8.0% had someone living alone who was 65 years of age or older. The average household size was 2.49 and the average family size was 2.94.
In the town the population was spread out with 24.9% under the age of 18, 4.9% from 18 to 24, 30.8% from 25 to 44, 28.4% from 45 to 64, and 11.0% who were 65 years of age or older. The median age was 41 years. For every 100 females there were 93.5 males. For every 100 females age 18 and over, there were 94.6 males.
The median income for a household in the town was $63,068, and the median income for a family was $70,250. Males had a median income of $51,250 versus $27,143 for females. The per capita income for the town was $29,261. About 2.9% of families and 3.1% of the population were below the poverty line, including 3.8% of those under age 18 and 3.3% of those age 65 or over.
Originally an area called Port Dixie, the town "sprang up out of the woods" in 1943-1944 as a community of 160 houses to be used as housing for military officers by developer Clifford H. Meigs.
During the Civil War [sic- First World War], 130 Germans operated a "dye" plant at Port Dixie, "actually an explosives factory and probably a submarine base as well." Costly machinery was smashed when they fled and the records were thrown into Garnier's Bayou.
"In February 1927 the Choctawhatchee and Northern Railroad was chartered 'To construct, acquire, maintain, lease, or operate a line of railroad or railroads from a point between Galliver and Crestview on the Louisville and Nashville Railroad inOkaloosa County, to a point in said county on Choctawhatchee Bay, a distance of approximately twenty-eight miles.' On Garnier's Bayou near the present Eglin (Air Force Base) housing development of Shalimar, a $29,000,000 Port Dixie Harbor and Terminal Company was chartered to build wharves for liners, a rail line north, and a city of one square mile, with streets 100 feet wide." These ambitious plans would not see fruition.
Badly needed new homes were constructed beginning in 1942 by Clifford Meigs and his associates to provide adequate facilities for commissioned officers assigned at the rapidly expanding Eglin Field, immediately north of what was initially referred to as "Shalimar Park". This land was acquired from James E. Plew. The first 50 homes were almost complete by May, with another 25 underway, with the entire project costing approximately $350,000. The Plew Heights housing project near Valparaiso, Florida had been erected in 1941 to take care of civil service employees and enlisted personnel, but the government made no provision for commissioned officers.
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