The area around Montrose has been occupied continuously since at least the 1780s, when Quashquame's village was established nearby.

The area was strategically important because it is at the head of the Des Moines Rapids, a major impediment to river traffic that caused large boats to land in this area and transfer freight overland to avoid the rapids.

In 1836 the commander of Fort Des Moines, Lieutenant-Colonel Mason, would begin to plat out the town.

[4] From 1839 to 1846 Montrose was the home of many members of the Church of Jesus Christ of Latter Day Saints.

This was especially true in 1839 when many people lived in an abandoned barracks at Montrose that served as a good short term residence while homes were being built in nearby Nauvoo, Illinois.

Among Montrose's residents at this time were Brigham Young, Wilford Woodruff and Erastus Snow.

Despite legends that the streets of Montrose were aligned to allow a direct view of the Nauvoo Temple across the Mississippi River in Illinois,[5] the streets actually align with the 1834 layout of Fort Des Moines.

Montrose became an important river town until the construction of a canal near Keokuk ended the lightering business.

The racial makeup of the city was 98.2% White, 0.4% African American, 0.3% Asian, and 1.0% from two or more races.

28.7% of all households were made up of individuals, and 13.9% had someone living alone who was 65 years of age or older.

29.9% of all households were made up of individuals, and 16.0% had someone living alone who was 65 years of age or older.