Southeast9.9% avg cap rate

Panama City Beach, FL

Florida Panhandle - high-volume family and spring break market

Panama City Beach offers 27 miles of Gulf Coast beach and one of the densest STR markets in Florida. Entry prices are meaningfully lower than Destin and 30A while delivering comparable occupancy during peak season. The market is heavily family- and spring-break-driven, with strong Memorial Day through Labor Day performance and soft winters.

9.9%
Avg Cap Rate
Net operating income / price
65%
Avg Occupancy
Annual average
$295
Avg Nightly Rate
All property types
$425K
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
65% occ × $295/night
$69,989
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $27,996
Est. net operating income
Before mortgage & depreciation
$41,993
At $425K avg price
Implied cap rate
9.9%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Panama City Beach

27 miles of Gulf beachfront - massive supply and demand base
Lower entry prices than Destin/30A with similar peak occupancy
Spring break demand drives March ADR spikes
Pier Park and casino traffic supports mid-week bookings
Peak season: Memorial Day - Labor Day, Spring Break
Top property types: Condo, Beach House, Gulf-front Unit
Primary zip: 32413, 32407, 32408

Panama City Beach STR investing, answered

Is Panama City Beach, FL a good short-term rental market?

Panama City Beach is a Southeast STR market averaging a 9.9% cap rate, 65% annual occupancy, and $295/night across STR-viable listings. Panama City Beach offers 27 miles of Gulf Coast beach and one of the densest STR markets in Florida. Entry prices are meaningfully lower than Destin and 30A while delivering comparable occupancy during peak season. The market is heavily family- and spring-break-driven, with strong Memorial Day through Labor Day performance and soft winters.

What is the average Airbnb occupancy rate in Panama City Beach?

STR-viable properties in Panama City Beach average about 65% occupancy across the year. Peak season is Memorial Day - Labor Day, Spring Break. Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Panama City Beach?

At $295/night and 65% occupancy, a typical Panama City Beach STR grosses roughly $69,989 per year before expenses, leaving an estimated $41,993 in net operating income against a $425K average price, an implied 9.9% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Panama City Beach?

The strongest-performing STR property types in Panama City Beach are Condo, Beach House, Gulf-front Unit. 27 miles of Gulf beachfront - massive supply and demand base. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Panama City Beach?

STR-viable listings in Panama City Beach average around $425K. Primary STR ZIP codes include 32413, 32407, 32408. Combined with the market's 9.9% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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