According to the United States Census Bureau, the city has a total area of 4.66 square miles (12.07 km), of which 4.25 square miles (11.01 km) is land and 0.41 square miles (1.06 km) is water.
The city is located along the Rainy River at its confluence with the Baudette River. It lies across the Rainy River from the town of Rainy River, Ontario and southeast of the Lake of the Woods.
Baudette and Rainy River are connected by the Baudette-Rainy River International Bridge.
Minnesota Highway 11, Minnesota Highway 72, and Minnesota Highway 172 are three of the main routes in the community.
As of the census of 2010, there were 1,106 people, 489 households, and 273 families residing in the city. The population density was 260.2 inhabitants per square mile (100.5/km). There were 577 housing units at an average density of 135.8 per square mile (52.4/km). The racial makeup of the city was 94.4% White, makes up 0.1% African American, 0.7% Native American, 0.8% Asian, 0.5% from other races, and 3.4% from two or more races. Hispanic or Latino of any race were 1.8% of the population.
There were 489 households of which 27.8% had children under the age of 18 living with them, 41.9% were married couples living together, 10.0% had a female householder with no husband present, 3.9% had a male householder with no wife present, and 44.2% were non-families. 39.7% of all households were made up of individuals and 18.2% had someone living alone who was 65 years of age or older. The average household size was 2.17 and the average family size was 2.95.
The median age in the city was 46.1 years. 23.5% of residents were under the age of 18; 5.4% were between the ages of 18 and 24; 19.8% were from 25 to 44; 29% were from 45 to 64; and 22.2% were 65 years of age or older. The gender makeup of the city was 46.3% male and 53.7% female.
As of the 2000 census, there were 1,104 people, 490 households, and 271 families residing in the city. The population density was 334.1 people per square mile (129.2/km²). There were 540 housing units at an average density of 163.4 per square mile (63.2/km²). The racial makeup of the city was 94.02% White, 0.54% African American, 2.90% Native American, 0.36% Asian, 0.18% from other races, and 1.99% from two or more races. Hispanic or Latino of any race were 0.72% of the population.
There were 490 households out of which 28.0% had children under the age of 18 living with them, 43.1% were married couples living together, 9.6% had a female householder with no husband present, and 44.5% were non-families. 41.0% of all households were made up of individuals and 22.2% had someone living alone who was 65 years of age or older. The average household size was 2.16 and the average family size was 2.97.
In the city, the population was spread out with 24.7% under the age of 18, 5.9% from 18 to 24, 23.0% from 25 to 44, 21.9% from 45 to 64, and 24.5% who were 65 years of age or older. The median age was 42 years. For every 100 females, there were 86.8 males. For every 100 females age 18 and over, there were 82.2 males.
The median income for a household in the city was $31,281, and the median income for a family was $43,000. Males had a median income of $32,500 versus $22,500 for females. The per capita income for the city was $16,653. About 6.5% of families and 9.1% of the population were below the poverty line, including 7.6% of those under age 18 and 17.6% of those age 65 or over.