Panama City, Florida Short-Term Rental Market
Panama City, FL STRs posted $298/night ADR at 54.7% occupancy in April 2026, with year-over-year revenue up 8.9%.
Quick Answer: Panama City, Florida is an active short-term rental market. average occupancy is 55%. average monthly revenue is $4,438. average daily rate is $298. the top operator is Vacasa with 1,194 listings. market score is 62/100 (grade C).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Panama City is the Bay County seat on Florida’s northwest Gulf Coast, a working waterfront city of approximately 36,000 residents that sits adjacent to, but distinct from, Panama City Beach. The short-term rental market here skews toward the St. Andrews neighborhood, waterfront corridors, and zones close to Tyndall Air Force Base, rather than the dense beach resort strip.
In April 2026, the market recorded an average daily rate of $298 and occupancy of 54.7%, generating average monthly revenue of $4,438 per active listing. RevPAR stood at $163. Year over year, occupancy climbed 6.6 percentage points while ADR slipped 1.3%, resulting in a net revenue gain of 8.9%.
The listing mix is dominated by entire-place rentals, which account for 18,469 of roughly 18,612 tracked listings (99.2%). Private rooms represent 139 listings and shared rooms just 4. By bedroom count, two-bedroom listings are the most common at 6,877, followed by one-bedrooms (5,355), three-bedrooms (4,359), four-bedrooms (1,240), and five-plus bedrooms (746). Channel distribution shows most listings appear on both Airbnb and VRBO (12,797), with 2,997 VRBO-only and 2,818 Airbnb-only.
Market scores reflect a market with strong investability (87.6 out of 100) and solid rental demand (77.5) and revenue growth signals (74.3), moderated by seasonality risk (42.8) and a mid-range regulatory score (59.2). Total market score is 61.5.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $173 | $1,644 |
| Feb | 62% | $180 | $2,163 |
| Mar | 67% | $251 | $3,677 |
| Apr | 51% | $252 | $3,564 |
| May | 64% | $269 | $4,146 |
| Jun | 82% | $324 | $6,786 |
| Jul | 81% | $316 | $6,835 |
| Aug | 53% | $249 | $3,823 |
| Sep | 52% | $223 | $3,159 |
| Oct | 50% | $203 | $2,659 |
| Nov | 33% | $183 | $1,686 |
| Dec | 35% | $186 | $1,597 |
Top Short-Term Rental Operators in Panama City
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Vacasa | 1,194 | 39,907 | ★ 4.32 |
| 2 | Panhandle Getaways | 852 | 9,635 | ★ 4.48 |
| 3 | RealJoy | 681 | 23,563 | ★ 4.49 |
| 4 | Southern Vacation Rentals by Vtrips | 594 | 6,259 | ★ 4.24 |
| 5 | Emerald Coast Destinations | 426 | 22,520 | ★ 4.29 |
What Kind of STR Should I Buy in Panama City?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 5,355 |
| 2 bed | 6,877 |
| 3 bed | 4,359 |
| 4 bed | 1,240 |
| 5 bed | 746 |
ADR by Property Tier
| Entire Home | $299 |
| Luxury | $415 |
| Professionally Managed | $316 |
Revenue by Dwelling Type
| Apartment | $4,147 |
| Entire Place | $4,452 |
| House | $5,464 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 15.1% |
| vrbo | 16.1% |
| both | 68.8% |
Investment Analysis
Panama City’s STR economics in 2026 present a measured opportunity compared to nearby Gulf Coast resort markets. At a typical home value of $284,310 (Zillow, April 2026), entry costs are meaningfully lower than Gulf-front markets to the east or west, while gross revenue potential remains competitive.
At $4,438 average monthly revenue, a fully-occupied STR in Panama City generates approximately $53,256 in gross annual revenue. Against a $284,310 acquisition cost, that implies a gross revenue yield of approximately 18.7% before expenses. Net returns depend heavily on management fees, maintenance, insurance, and vacancy, so a conservative underwriting figure after those costs would typically be 30-50% of gross, placing net yields in a rough range of 5-9%.
Tier comparisons are instructive. The all-listings ADR of $298 compares to an entire-home tier ADR of $299, a professionally-managed tier ADR of $316, and a luxury tier ADR of $415. Operators in the professionally-managed tier capture roughly 6% more per night than the market average, and luxury properties command a 39% premium.
The 2025 annual average revenue of $4,340 per listing marked a record for the dataset, up from $4,176 in 2024 and $3,598 in 2023. The 2024-to-2025 increase of 3.9% was driven by ADR, which held near $274-276 in those years despite occupancy remaining in the 53-55% range. Houses outperform other property types, averaging $5,464/month versus $4,452 for entire-place units and $4,147 for apartments at the April 2026 data point.
For sale inventory stands at 428 active listings with a median days-to-pending of 60, indicating a buyer’s market with time to negotiate. The sale-to-list ratio of 0.953 suggests homes are selling at about 95 cents on the list dollar on average.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Panama City STR guests book an average of 48 days in advance, and stays average 4.3 nights per booking.
A 48-day lead time is relatively short for a coastal Florida market and has practical implications for pricing strategy. Dynamic pricing tools can hold rates firm further out when demand signals are strong, then adjust aggressively as arrival dates approach and availability remains. For summer peak periods (June and July), early-booking demand likely extends the effective lead window, while fall and winter bookings may arrive with significantly shorter advance notice.
The 4.3-night average length of stay is below the 7-night minimum common in Gulf-front beach markets. This creates more frequent unit turnover and higher cleaning costs per occupied night, which operators should factor into net revenue calculations. It also means more guest interactions and higher operational intensity compared to markets with longer average stays.
For pricing windows: a 48-day forward horizon means operators updating rates weekly are working within roughly six pricing cycles before a typical booking solidifies. Listings without dynamic pricing automation active through at least a 60-day forward window are likely leaving revenue on the table, particularly during the high-demand spring and summer window when rate compression from late-booking inventory can be significant.
Short-Term Rental Regulations
Panama City (the city proper, not Panama City Beach) operates under a layered STR licensing structure that differs meaningfully from the adjacent beach municipality.
STRs are permitted within the city limits but restricted to specific zoning districts: R-2, UR-1, UR-2, MU-2, MU-3, Downtown, St. Andrews, and Cultural Heritage Districts. Properties in R-1 single-family zones cannot legally operate as STRs. Prospective investors must verify zoning before purchase. One license is required per individual dwelling unit.
There is no owner-occupancy or primary residence requirement, meaning investors may own and rent properties without living on site.
Licensing requires two separate authorizations. First, a City of Panama City Merchant Business License through the GovOS portal (panamacity.munirevs.com). The fee structure is 1% of gross monthly rental income with a minimum of $1.50 per month. Second, a Florida DBPR Vacation Rental Dwelling license applies to any property rented more than three times per calendar year for periods under 30 days; application fees are approximately $50 plus a variable annual renewal fee.
Combined lodging tax on short-term rentals is 11%: a 5% Bay County Tourist Development Tax remitted through baycounty.munirevs.com, plus 6% Florida state sales tax on transient rental income.
Florida state preemption under FS 509.032(7) prohibits local governments from banning STRs outright or regulating the duration or frequency of stays, provided local rules were not enacted before June 1, 2011. In June 2024, Governor DeSantis vetoed SB 280, which would have further expanded state preemption, leaving the current regulatory framework largely unchanged. Enforcement severity is rated moderate.
Market Comparison
Panama City’s STR market occupies a distinct position relative to both national benchmarks and the broader Panhandle region.
US STR market median occupancy runs approximately 55%, and Panama City’s April 2026 occupancy of 54.7% sits essentially at that benchmark. The US median ADR is approximately $220; Panama City’s $298 average exceeds that by 35%, reflecting the Gulf Coast location premium and the dominance of entire-place rentals, which inherently command higher nightly rates than room-level inventory.
Compared to neighboring Panama City Beach (a separate municipality), Panama City proper is a smaller, less liquidity-dense STR market. It attracts military-adjacent travelers, boating and fishing visitors, and downtown arts and culture visitors rather than the mass Gulf-front beach tourist segment. This mix translates to lower peak-season ceilings but also supports a more resilient shoulder-season base from Tyndall Air Force Base traffic.
The professional management landscape is competitive and consolidated. Vacasa leads with 1,194 listings and 39,907 reviews (rating 4.32). Panhandle Getaways holds 852 listings and 9,635 reviews (rating 4.48). RealJoy manages 681 listings with 23,563 reviews (rating 4.49). Southern Vacation Rentals by Vtrips follows at 594 listings and 6,259 reviews (rating 4.24). Emerald Coast Destinations rounds out the top five with 426 listings and 22,520 reviews (rating 4.29). These five operators collectively manage 3,747 listings, representing a significant share of the professionally-managed segment.
Frequently Asked Questions About Panama City, Florida
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