The area was settled by 120 Norwegian immigrants from Lisbon, Illinois on June 7, 1855; including Osmond and Anna Sheldahl and five of their children. It incorporated as a city on January 18, 1882. The Chicago, Milwaukee, St. Paul and Pacific Railroad established a rail line through Sheldahl during the 1880s. In 2005, Union Pacific Railroad sold a 25-mile discontinued rail corridor—which included the line through Sheldahl—to the Iowa Natural Heritage Foundation, which enabled the construction of the recreational High Trestle Trail. Access to the trail, including a parking area and washroom, is located in Sheldahl.
Geography
Sheldahl is located at . According to the United States Census Bureau, the city has a total area of, all land.
As of the census of 2010, there were 319 people, 124 households, and 98 families living in the city. The population density was. There were 132 housing units at an average density of. The racial makeup of the city was 98.7% White, 0.3% Native American, and 0.9% from two or more races. Hispanic or Latino of any race were 0.9% of the population. There were 124 households of which 31.5% had children under the age of 18 living with them, 62.1% were married couplesliving together, 11.3% had a female householder with no husband present, 5.6% had a male householder with no wife present, and 21.0% were non-families. 16.1% of all households were made up of individuals and 8.1% had someone living alone who was 65 years of age or older. The average household size was 2.57 and the average family size was 2.84. is listed on the National Register of Historic Places The median age in the city was 42.3 years. 25.4% of residents were under the age of 18; 5.7% were between the ages of 18 and 24; 23.3% were from 25 to 44; 29.4% were from 45 to 64; and 16.3% were 65 years of age or older. The gender makeup of the city was 50.8% male and 49.2% female.
2000 census
As of the census of 2000, there were 336 people, 129 households, and 99 families living in the city. The population density was 398.5 people per square mile. There were 132 housing units at an average density of 156.6 per square mile. The racial makeup of the city was 99.70% White, 0.30% from other races. Hispanic or Latino of any race were 0.30% of the population. There were 129 households out of which 34.1% had children under the age of 18 living with them, 65.9% were married couples living together, 6.2% had a female householder with no husband present, and 22.5% were non-families. 18.6% of all households were made up of individuals and 9.3% had someone living alone who was 65 years of age or older. The average household size was 2.60 and the average family size was 2.96. 26.2% are under the age of 18, 6.5% from 18 to 24, 28.6% from 25 to 44, 25.6% from 45 to 64, and 13.1% who were 65 years of age or older. The median age was 37 years. For every 100 females, there were 103.6 males. For every 100 females age 18 and over, there were 105.0 males. The median income for a household in the city was $48,393, and the median income for a family was $48,571. Males had a median income of $32,969 versus $25,000 for females. The per capita income for the city was $17,811. About 5.7% of families and 3.4% of the population were below the poverty line, including 2.0% of those under age 18 and none of those age 65 or over.