The zip code 83540 in Sweetwater, Idaho, is classified as a "Racial Majority" community with Native Americans comprising 50% of the population as of 2022. This demographic composition is unique, as Native Americans are typically a minority in most U.S. communities. The area also exhibits "Moderate Diversity" with significant representation from white residents (41%). The median income in 2022 was $54,730, indicating a moderate economic standing for the community.

Over the past decade, Sweetwater has maintained its status as a "Racial Majority" community, with a notable shift. In 2013, the community was close to being classified as a "White Plurality" with whites making up 41% of the population and Native Americans at 44%. By 2022, the Native American population had increased to 50%, solidifying the area's classification as a "Native American Majority" community. The Hispanic population declined from 7% in 2013 to 2% in 2022, while the percentage of residents identifying as two or more races remained relatively stable, fluctuating between 4% and 8% throughout the decade.

The median income in Sweetwater has shown a general upward trend over the past decade, increasing from $44,826 in 2013 to $54,730 in 2022, a rise of approximately 22%. This growth in median income has coincided with the increase in the Native American population percentage. The population has also grown during this period, from 1,602 in 2013 to 1,577 in 2022, with some fluctuations. The peak population of 1,762 was recorded in 2021, coinciding with the highest median income of $57,578.