According to the United States Census Bureau, Capitan has a total area of 3.2 square miles (8.3 km2), all land. The community is surrounded by high desert mountains and New Mexico cedar, pinon and juniper trees.
As of the census[6] of 2000, there were 1,443 people, 605 households, and 416 families residing in the village. The population density was 450.9 inhabitants per square mile (174.1/km2). There were 717 housing units at an average density of 224.0 per square mile (86.5/km2). The racial makeup of the village was 83.57% White, 0.55% African American, 1.46% Native American, 0.55% Asian, 0.07% Pacific Islander, 7.76% from other races, and 2.08% from two or more races. Hispanic or Latino of any race were 19.20% of the population.
There were 605 households, out of which 26.4% had children under the age of 18 living with them, 56.0% were married couples living together, 9.8% had a female householder with no husband present, and 31.2% were non-families. 27.4% of all households were made up of individuals, and 10.4% had someone living alone who was 65 years of age or older. The average household size was 2.39 and the average family size was 2.91.
In the village, the population was spread out, with 24.9% under the age of 18, 5.9% from 18 to 24, 22.6% from 25 to 44, 29.9% from 45 to 64, and 16.6% who were 65 years of age or older. The median age was 42 years. For every 100 females, there were 97.4 males. For every 100 females age 18 and over, there were 93.4 males.
The median income for a household in the village was $27,188, and the median income for a family was $32,115. Males had a median income of $23,500 versus $16,902 for females. The per capita income for the village was $15,062. About 8.3% of families and 13.0% of the population were below the poverty line, including 13.7% of those under age 18 and 12.1% of those age 65 or over.