The town was once a part of Effingham called "North Effingham". Following an influx of new settlers from Maine, there was a conflict of culture and religion between them and people from the New Hampshire seacoast area who already populated Effingham. As a result, North Effingham separated into a town of its own. The community, incorporated in 1831, was appropriately named "Freedom". The town was the setting for the children's fantasy bookThe Enormous Egg by Oliver Butterworth, first published in 1956 but reissued years later, and a 2001 broadcast of This American Life, "House on Loon Lake". The episode depicted an abandoned house explored by young boys in town for summer camp at Loon Lake.
As of the census of 2010, there were 1,489 people, 699 households, and 457 families residing in the town. The population density was 42.5 people per square mile. There were 1,580 housing units at an average density of 45.1 per square mile. The racial makeup of the town was 98.8% White, 0.1% African American, 0.3% Asian, 0.1% some other race, and 0.7% from two or more races. There were 699 households, out of which 19.0% had children under the age of 18 living with them, 56.9% were headed by married couplesliving together, 5.7% had a female householder with no husband present, and 34.6% were non-families. 28.9% of all households were made up of individuals, and 14.5% were someone living alone who was 65 years of age or older. The average household size was 2.12, and the average family size was 2.57. In the town, the population was spread out, with 15.6% under the age of 18, 4.9% from 18 to 24, 16.8% from 25 to 44, 35.9% from 45 to 64, and 26.9% who were 65 years of age or older. The median age was 53.1 years. For every 100 females, there were 101.5 males. For every 100 females age 18 and over, there were 97.8 males. For the period 2007–11, the estimated median annual income for a household in the town was $47,375, and the median income for a family was $50,769. Male full-time workers had a median income of $40,536 versus $33,958 for females. The per capita income for the town was $32,537. About 6.0% of families and 7.2% of the population were below the poverty line, including 13.4% of those under the age of 18 and 3.6% of those 65 and older. The largest ancestry groups in Freedom as of 2007-11 were:
