Panama City's STR market carries 954 active listings with a 30% occupancy floor in winter and peak revenues topping $6,700 per month in July.
Market Overview
Panama City proper (not Panama City Beach) is a mid-size Gulf Coast STR market with 954 active listings as of February 2026. The market draws from Bay County’s 18 million annual visitors and serves a mix of leisure travelers visiting St. Andrews State Park, the Panama City Marina, and the area’s 27 miles of coastline. Population sits at 37,024 residents, giving the city a local demand base that supplements seasonal visitor traffic.
Average daily rates have risen steadily, from $214 in 2021 to $289 in 2025, a 35% increase over four years. However, supply has grown faster than demand. Active listings jumped from 382 in 2021 to 875 in 2025 and reached 953 by early 2026, a 149% supply increase over the same period. That expansion has compressed occupancy from a 63.5% average in 2021 down to 42.6% in 2025. The 2026 data so far (February snapshot) shows 30% occupancy, consistent with the market’s off-season baseline.
RevPAR (revenue per available room) averaged $78.30 in February 2026, which reflects the seasonal trough. The market’s annual average revenue per listing sits around $3,800 for full-year 2025. This is a market where strong seasonality separates top performers from underperformers. Properties positioned correctly in peak months (June and July) can generate over $6,700 in a single month, while the same property may generate under $2,000 in January.
For investors, Panama City proper offers lower entry prices than Panama City Beach while tapping much of the same regional visitor pool. The trade-off is lower peak-season ADR and more direct competition from the Beach market.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 34% | $202 | $1,985 | 639 |
| Feb | 44% | $202 | $2,605 | 644 |
| Mar | 61% | $233 | $4,588 | 528 |
| Apr | 54% | $228 | $3,924 | 530 |
| May | 56% | $253 | $4,485 | 522 |
| Jun | 68% | $283 | $6,295 | 595 |
| Jul | 68% | $286 | $6,717 | 656 |
| Aug | 53% | $242 | $4,198 | 649 |
| Sep | 47% | $229 | $3,440 | 643 |
| Oct | 44% | $223 | $3,192 | 620 |
| Nov | 37% | $207 | $2,341 | 624 |
| Dec | 35% | $212 | $2,263 | 637 |
Panama City runs on a Gulf Coast summer cycle with a secondary lift in spring. The data across all available months breaks down as follows.
Peak season (June and July) produces the highest revenue. June averages 68.2% occupancy at $283 ADR, generating $6,295 in average monthly revenue. July is nearly identical at 67.8% occupancy and $286 ADR, averaging $6,717 per month. These two months account for a disproportionate share of annual income and are critical for achieving break-even on operating costs.
Spring shoulder season (March through May) is the second-best window. March surges to 61.2% occupancy as spring break and early-season travelers arrive, generating $4,588 in average revenue at a $233 ADR. April and May hold reasonably well at 54.4% and 56.4% occupancy respectively, each producing $3,900 to $4,500 in average revenue.
Fall shoulder season (August through October) shows a meaningful step-down. August drops to 53% occupancy and $242 ADR, averaging $4,198 in revenue. September falls further to 47.4% at $229 ADR, and October settles at 44.4% occupancy and $223 ADR. Revenue in these months runs $3,200 to $4,200.
Winter (November through February) is the slow season. Occupancy ranges from 30% in February to 44.2% in February at the market level, with average revenues between $1,985 (January) and $2,605 (February). ADR compresses to $202 to $212, suggesting pricing pressure as demand thins out.
The occupancy swing from trough (30% in February) to peak (68.2% in June) is 38 percentage points, which is meaningful but not extreme for a Gulf Coast market. Operators who can cover fixed costs through the winter with competitive pricing are positioned to capture strong summer margins.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $792 | $1,773 | $2,939 | $4,649 |
| ADR | $177 | $244 | $332 | $507 |
| Occupancy | 11% | 25% | 45% | 61% |
Revenue in the Panama City STR market is skewed: a small share of top-performing properties earns significantly more than the median. The February 2026 snapshot provides the clearest percentile view.
In February (off-season baseline): the p25 property earned $792, the p50 (median) earned $1,773, the p75 earned $2,939, and the p90 earned $4,649. The market average was $2,193, pulled above the median by top earners.
Across peak months, average revenue reaches $6,295 to $6,717 (June and July). Applying the roughly 2.6x gap between p50 and p90 seen in February, a top-decile property in peak season could plausibly earn $10,000 or more in a single July.
For annual projections, the market-wide 2025 average was $3,800 per month, producing roughly $45,600 annually. Properties consistently performing at the p50 level would likely produce $30,000 to $38,000 annually based on seasonal averages. Properties at the p75 level or above, with strong summer occupancy, could approach $50,000 to $60,000 annually.
The wide spread between p25 and p90 underscores that property selection, quality, and management execution drive outcomes more than market-level averages suggest.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $5,902 | $190 | $212 |
| Apr 2021 | $5,461 | $182 | $218 |
| May 2021 | $5,721 | $185 | $211 |
| Jun 2021 | $6,689 | $223 | $256 |
| Jul 2021 | $7,121 | $230 | $255 |
| Aug 2021 | $5,641 | $182 | $226 |
| Sep 2021 | $4,499 | $150 | $214 |
| Oct 2021 | $4,009 | $129 | $204 |
| Nov 2021 | $2,923 | $97 | $173 |
| Dec 2021 | $2,801 | $90 | $174 |
| Jan 2022 | $2,215 | $71 | $172 |
| Feb 2022 | $3,298 | $118 | $180 |
| Mar 2022 | $5,003 | $161 | $238 |
| Apr 2022 | $4,618 | $154 | $235 |
| May 2022 | $4,869 | $157 | $249 |
| Jun 2022 | $6,535 | $218 | $258 |
| Jul 2022 | $7,424 | $240 | $271 |
| Aug 2022 | $4,266 | $138 | $206 |
| Sep 2022 | $3,606 | $120 | $190 |
| Oct 2022 | $3,291 | $106 | $176 |
| Nov 2022 | $2,642 | $88 | $161 |
| Dec 2022 | $2,461 | $79 | $154 |
| Jan 2023 | $2,059 | $66 | $147 |
| Feb 2023 | $2,612 | $93 | $155 |
| Mar 2023 | $4,293 | $139 | $204 |
| Apr 2023 | $3,593 | $120 | $198 |
| May 2023 | $4,153 | $134 | $214 |
| Jun 2023 | $5,859 | $195 | $242 |
| Jul 2023 | $6,610 | $213 | $256 |
| Aug 2023 | $3,771 | $122 | $204 |
| Sep 2023 | $3,137 | $105 | $200 |
| Oct 2023 | $2,085 | $67 | $177 |
| Nov 2023 | $1,527 | $51 | $180 |
| Dec 2023 | $1,498 | $48 | $203 |
| Jan 2024 | $1,496 | $48 | $186 |
| Feb 2024 | $2,467 | $85 | $183 |
| Mar 2024 | $3,457 | $112 | $239 |
| Apr 2024 | $2,562 | $85 | $228 |
| May 2024 | $3,863 | $125 | $271 |
| Jun 2024 | $5,598 | $187 | $306 |
| Jul 2024 | $5,483 | $177 | $305 |
| Aug 2024 | $3,423 | $110 | $273 |
| Sep 2024 | $2,716 | $91 | $252 |
| Oct 2024 | $2,883 | $93 | $245 |
| Nov 2024 | $1,909 | $64 | $221 |
| Dec 2024 | $1,938 | $63 | $226 |
| Jan 2025 | $1,764 | $57 | $204 |
| Feb 2025 | $2,453 | $88 | $205 |
| Mar 2025 | $4,284 | $138 | $272 |
| Apr 2025 | $3,385 | $113 | $263 |
| May 2025 | $3,821 | $123 | $319 |
| Jun 2025 | $6,795 | $227 | $354 |
| Jul 2025 | $6,948 | $224 | $343 |
| Aug 2025 | $3,892 | $126 | $301 |
| Sep 2025 | $3,244 | $108 | $288 |
| Oct 2025 | $3,693 | $119 | $314 |
| Nov 2025 | $2,705 | $90 | $301 |
| Dec 2025 | $2,619 | $85 | $302 |
| Jan 2026 | $2,393 | $77 | $299 |
| Feb 2026 | $2,193 | $78 | $286 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 73% | 351 |
| Jun 2021 | 69% | 385 |
| Sep 2021 | 63% | 388 |
| Dec 2021 | 48% | 392 |
| Mar 2022 | 70% | 401 |
| Jun 2022 | 75% | 633 |
| Sep 2022 | 51% | 624 |
| Dec 2022 | 38% | 619 |
| Mar 2023 | 64% | 622 |
| Jun 2023 | 73% | 615 |
| Sep 2023 | 46% | 585 |
| Dec 2023 | 27% | 511 |
| Mar 2024 | 48% | 494 |
| Jun 2024 | 61% | 365 |
| Sep 2024 | 39% | 667 |
| Dec 2024 | 31% | 718 |
| Mar 2025 | 51% | 770 |
| Jun 2025 | 63% | 975 |
| Sep 2025 | 38% | 953 |
| Dec 2025 | 30% | 945 |
At a median sale price of $287,333 and typical home values around $276,347, Panama City offers a lower acquisition cost than most Gulf Coast STR markets. With a sale-to-list ratio of 0.973, properties are generally selling slightly below asking, and 69 days to pending indicates a buyer-favorable pace. Investors have negotiating room in this market.
For-sale inventory stands at 419 units, providing reasonable selection across price points. An investor purchasing near the $287,333 median and financing with a conventional 25% down payment ($71,833 down) would need to cover approximately $1,700 to $2,000 per month in PITI plus operating costs depending on the rate environment.
Revenue potential at the 2025 annual average is roughly $3,800 per month across all listings. However, the distribution is wide. In February 2026 (the off-season), the p50 property earned $1,773 while the p90 earned $4,649. In peak summer months (June/July), average revenue climbs to $6,295 to $6,717. A property consistently hitting the p75 tier could realistically produce $35,000 to $42,000 annually based on the seasonal data.
The main risk is supply saturation. Listings nearly tripled from 2021 to 2026 while occupancy dropped from 63.5% to around 42.6%. New entrants face a more competitive environment than operators who entered in 2020 or 2021. ADR growth (35% over four years) has partially offset the occupancy decline, but annual revenue per listing has still fallen from $5,077 in 2021 to $3,800 in 2025.
Investors who can target properties with differentiated amenities, waterfront access, or proximity to St. Andrews State Park are likely to outperform the market average and maintain occupancy closer to the p75 tier.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $217,848 |
| Dec 2021 | $233,520 |
| Sep 2022 | $267,546 |
| Jun 2023 | $277,894 |
| Mar 2024 | $285,112 |
| Dec 2024 | $279,540 |
| Sep 2025 | $277,971 |
Booking Insights
The average booking lead time in Panama City is 49.5 days, with a median of 21 days. That gap between the average and median is notable: it means a subset of bookings are placed well in advance (pulling the average up), while more than half of reservations come in within three weeks of check-in. For pricing strategy, this distribution supports a tiered approach: set a firm rate for bookings made more than 45 days out, then use dynamic pricing adjustments as the window shortens to capture last-minute demand without leaving early-bird revenue on the table.
The average length of stay is 9.4 nights, but the median is just 4 nights. Similar to lead time, a handful of long stays (weekly or monthly rentals) pull the average well above what most guests actually book. The typical booking is a long-weekend or short-week trip. Pricing should be structured to make the minimum stay during peak season long enough to maximize revenue per turnover (4 to 7 nights is common), while relaxing minimum stays in the off-season to fill gaps.
With 954 active listings competing for the same visitor pool, properties that maintain strong review scores and optimized listing copy will see better conversion from search to booking. The combination of a 21-day median lead time and 4-night median stay suggests the market responds well to last-minute promotions for shoulder-season gap filling.
Short-Term Rental Regulations
Panama City, Florida has a defined short-term rental registration requirement. Any property rented for fewer than 181 consecutive nights must be registered with the city. Registration requires obtaining a city business license and submitting a property registration application with associated fees.
Tax obligations are layered. Operators must collect and remit a 5% bed tax to the city on all rental transactions. Separately, property owners must register with Bay County and collect the County Tourist Development Tax. Both obligations apply regardless of whether bookings come through a platform like Airbnb or Vrbo, which may collect state sales tax on the host’s behalf but do not handle local bed tax remittance in all cases. Operators should verify current platform remittance agreements before assuming taxes are fully covered.
Zoning restrictions determine where STRs can legally operate within city limits. Not all residential zones permit short-term rentals, so confirming the zoning classification of a target property before purchase is a required step. The city’s Code Compliance office handles enforcement; violations can result in fines or license revocation.
Safety requirements include functioning smoke detectors and fire extinguishers as a minimum baseline. Additional requirements may apply depending on unit type and occupancy capacity.
Panama City’s regulatory posture is structured but not prohibitive compared to markets that have imposed STR caps or outright bans. The registration-and-tax framework is standard for Florida Gulf Coast municipalities. The most important pre-purchase check is zoning verification, since operating an STR in a non-permitted zone creates compliance exposure regardless of licensing status. The official resource for compliance questions is the Code Compliance section at panamacity.gov.
Market Comparison
Panama City proper sits in a different tier from Panama City Beach. Panama City Beach operates at higher ADRs and a more established tourist infrastructure. Panama City proper carries a 2025 average ADR of $289, which is competitive for a secondary Gulf Coast market but lower than direct-beach alternatives. The trade-off is a meaningfully lower purchase price: $287,333 median versus beachfront markets that frequently clear $500,000 to $700,000.
Compared to national STR benchmarks, Panama City’s 42.6% annual occupancy rate (2025 average) is below the U.S. national average, which typically runs in the 50% to 55% range for established leisure markets. The supply growth from 2021 to 2026 is a key reason for this underperformance relative to national norms.
ADR growth of 35% from 2021 to 2025 outpaces inflation and reflects the market’s pricing power even as occupancy declined, suggesting that the underlying demand base is present but spread across more listings. Markets with flat or declining ADR alongside declining occupancy would signal a more serious structural demand problem; Panama City’s ADR trajectory is more constructive.
For investors benchmarking entry cost against annual revenue, the gross yield potential at $3,800 per month average revenue ($45,600 annually) against a $287,333 purchase price implies a roughly 15.9% gross revenue-to-price ratio before expenses, which is above average for Gulf Coast STR markets. Net operating performance will depend heavily on management costs, seasonality management, and individual property positioning.
Frequently Asked Questions About Panama City, Florida
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