Mid-thigh cross-sectional muscle area (CSA), muscle attenuation, and greater trochanter soft tissue thickness have been shown to be independent risk factors of hip fracture. Our aim was to determine whether muscle and adipose tissue measures derived from DXA scans would have a similar risk association as those measured using other imaging methods. Using a case-cohort study design, we identified 169 incident hip fracture cases over an average of 13.5 years among participants from the Health ABC Study, a prospective study of 3,075 individuals initially aged 70–79. We modeled the thigh 3D geometry and compared DXA and CT measures. DXA-derived thigh CSA, muscle attenuation, and subcutaneous fat thickness were found to be highly correlated to their CT counterparts (Pearson’s r = 0.82, 0.45, and 0.91, respectively; p < 0.05). The fracture risk of men and women were calculated separately. We found that decreased subcutaneous fat, CT thigh muscle attenuation, and appendicular lean mass by height squared (ALM/Ht2) were associated with fracture risk in men, hazard ratios (HR) equal 1.44 (1.02, 2.02), 1.40 (1.05, 1.85), and 0.58 (0.36, 0.91) respectively after adjusting for age, race, clinical site, BMI, chronic disease, hip BMD, self-reported health, alcohol use, smoking status, education, physical activity, cognitive function. In a similar model for women, only decreases in subcutaneous fat and DXA CSA were associated with hip fracture risk, HR equal 1.39 (1.07, 1.82) and 0.78 (0.62, 0.97) respectively. Men with a high ALM/Ht2 and low subcutaneous fat thickness had over 8 times higher risk for hip fracture compared to those with low ALM/Ht2 and high subcutaneous fat. In women, ALM/Ht2 did not improve the model when subcutaneous fat included. We conclude that the DXA-derived subcutaneous fat thickness is a strong marker for hip fracture risk in both men and women, and especially men with high ALM/Ht2.