Sheldon is a city in O'Brien and Sioux counties in the U.S. state of Iowa, along the Floyd River. The population was 5,512 at the time of the 20…Sheldon is a city in O'Brien and Sioux counties in the U.S. state of Iowa, along the Floyd River. The population was 5,512 at the time of the 2020 census; it is the largest city in O'Brien County. Sheldon got its start in the year 1873, following construction of the Sioux City & St. Paul Railroad through that territory. It was named for Israel Sheldon, a railroad promoter. It was a strategic location on the rail for businesses from as far away as Minneapolis and Omaha, after the addition of the intersection with the Chicago, Milwaukee and St. Paul Railway in 1878.