Panama City Beach runs 10,196 active STR listings with a June-July peak occupancy of 62% and average daily rates topping $338.
Market Overview
Panama City Beach is one of Florida’s largest short-term rental markets by listing count. As of February 2026, 10,196 active listings compete for approximately 17 million annual visitors in a city with a permanent resident population of only 14,273. That ratio of tourists to residents is among the highest of any STR market tracked in the AirROI dataset.
The market has gone through a significant structural shift since 2021. Listing supply nearly doubled from 5,808 in 2021 to a peak of 10,350 in 2025, a 78% increase in active inventory. Over the same period, average annual occupancy fell from 54.7% (2021) to a low of 39.7% (2024) before partially recovering to 41.8% in 2025. In short, supply outpaced demand growth, compressing occupancy rates market-wide.
Average daily rates tell a different story. ADR held steady at $247 in both 2021 and 2022, then dipped to $223 in 2023 before rebounding sharply to $281 in 2024 and $318 in 2025. The February 2026 ADR of $315 indicates that pricing power has returned even while occupancy recovery is still incomplete. RevPAR for February 2026 stands at $93.80 against a median of $70.40, reflecting the wide performance gap between operators in this market.
For investors, Panama City Beach presents a high-ceiling, high-competition environment. A well-managed, well-positioned property can outperform significantly, but the math only works when underwriting accounts for the realistic occupancy picture rather than the peak-era numbers from 2021.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 29% | $232 | $2,155 | 8,207 |
| Feb | 43% | $226 | $2,996 | 8,282 |
| Mar | 55% | $265 | $4,979 | 7,305 |
| Apr | 50% | $259 | $4,297 | 7,366 |
| May | 54% | $289 | $5,259 | 7,112 |
| Jun | 62% | $338 | $7,473 | 7,701 |
| Jul | 59% | $339 | $7,774 | 8,409 |
| Aug | 52% | $279 | $4,972 | 8,391 |
| Sep | 47% | $251 | $3,929 | 8,376 |
| Oct | 44% | $242 | $3,454 | 8,042 |
| Nov | 34% | $227 | $2,452 | 8,107 |
| Dec | 29% | $242 | $2,345 | 8,180 |
Panama City Beach runs one of the most sharply seasonal STR calendars in the Southeast. The difference between the best and worst months is not marginal. It is the difference between a functioning business and a carrying-cost problem.
Peak season runs June through July. June averages 62.2% occupancy at $338 ADR, producing $7,473 in average monthly revenue. July is close behind at 59.2% occupancy, $339 ADR, and $7,774 in revenue. These two months alone account for a disproportionate share of annual income.
Spring shoulder season (March through May) performs solidly. March hits 55.0% occupancy at $265 ADR ($4,979 revenue). April and May follow at 50.0% and 53.8% occupancy respectively, with May reaching $289 ADR and $5,259 in average revenue. Spring break traffic in March and early April supports pricing well above winter levels.
August begins the pullback. Occupancy falls to 51.8% and average revenue drops to $4,972 despite summer-adjacent timing, likely reflecting that school calendars start pulling guests home. September through November see progressive declines: September at 47.2% ($3,929 revenue), October at 43.8% ($3,454), November at 33.6% ($2,452).
Winter is the slowest window. January and December both sit at roughly 29% occupancy with average revenues of $2,155 and $2,345 respectively. ADR holds in the $232 to $242 range in these months, suggesting demand exists but at reduced volume.
Operators who price dynamically through the spring shoulder and keep costs low in winter are best positioned to maximize annual yield.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $849 | $1,972 | $3,608 | $5,611 |
| ADR | $202 | $265 | $361 | $503 |
| Occupancy | 11% | 25% | 46% | 60% |
February 2026 revenue percentiles provide a current snapshot of the full performance range across 10,196 active listings.
The bottom quartile (P25) earned $849 for the month. The median property (P50) earned $1,972. The top quartile (P75) earned $3,608, and top-decile properties (P90) earned $5,611 in February alone.
The average of $2,626 sits above the median of $1,972, which indicates the distribution is right-skewed. A smaller group of high-performing properties pulls the average up, while the majority of listings cluster below it.
In peak season the spread widens further. Annual revenue averages for full years were $5,585 (2021), $4,859 (2022), $3,993 (2023), $3,536 (2024), and $4,248 (2025). The recovery from the 2024 trough to 2025 was driven primarily by ADR gains rather than occupancy improvement, which suggests that operators who priced aggressively captured the upside while the market was still absorbing excess supply.
ADR percentile spread in February: P25 at $202, median at $265, P75 at $361, P90 at $503. The wide ADR range reflects property type and quality differences as much as pricing strategy. Beachfront gulf-view units command premium rates that pull P90 significantly above the market average.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $6,242 | $201 | $238 |
| Apr 2021 | $5,945 | $198 | $245 |
| May 2021 | $6,341 | $205 | $251 |
| Jun 2021 | $7,461 | $249 | $288 |
| Jul 2021 | $7,499 | $242 | $299 |
| Aug 2021 | $6,430 | $207 | $263 |
| Sep 2021 | $5,089 | $170 | $234 |
| Oct 2021 | $4,360 | $141 | $231 |
| Nov 2021 | $3,347 | $112 | $208 |
| Dec 2021 | $3,133 | $101 | $214 |
| Jan 2022 | $3,009 | $97 | $217 |
| Feb 2022 | $3,586 | $128 | $218 |
| Mar 2022 | $5,995 | $193 | $269 |
| Apr 2022 | $5,030 | $168 | $269 |
| May 2022 | $5,853 | $189 | $289 |
| Jun 2022 | $7,766 | $259 | $311 |
| Jul 2022 | $8,378 | $270 | $334 |
| Aug 2022 | $5,239 | $169 | $253 |
| Sep 2022 | $4,398 | $147 | $222 |
| Oct 2022 | $3,681 | $119 | $203 |
| Nov 2022 | $2,801 | $93 | $187 |
| Dec 2022 | $2,579 | $83 | $187 |
| Jan 2023 | $2,105 | $68 | $177 |
| Feb 2023 | $3,029 | $108 | $176 |
| Mar 2023 | $4,845 | $156 | $225 |
| Apr 2023 | $4,113 | $137 | $217 |
| May 2023 | $4,789 | $155 | $227 |
| Jun 2023 | $7,137 | $238 | $284 |
| Jul 2023 | $8,019 | $259 | $300 |
| Aug 2023 | $4,635 | $150 | $228 |
| Sep 2023 | $3,640 | $121 | $222 |
| Oct 2023 | $2,395 | $77 | $193 |
| Nov 2023 | $1,648 | $55 | $196 |
| Dec 2023 | $1,564 | $50 | $229 |
| Jan 2024 | $1,602 | $52 | $210 |
| Feb 2024 | $2,906 | $100 | $200 |
| Mar 2024 | $3,524 | $114 | $285 |
| Apr 2024 | $2,749 | $92 | $274 |
| May 2024 | $4,573 | $148 | $325 |
| Jun 2024 | $6,796 | $227 | $392 |
| Jul 2024 | $6,594 | $213 | $362 |
| Aug 2024 | $3,970 | $128 | $314 |
| Sep 2024 | $2,997 | $100 | $274 |
| Oct 2024 | $2,948 | $95 | $260 |
| Nov 2024 | $1,864 | $62 | $233 |
| Dec 2024 | $1,911 | $62 | $249 |
| Jan 2025 | $1,747 | $56 | $228 |
| Feb 2025 | $2,833 | $101 | $219 |
| Mar 2025 | $4,290 | $138 | $307 |
| Apr 2025 | $3,646 | $122 | $290 |
| May 2025 | $4,740 | $153 | $355 |
| Jun 2025 | $8,204 | $274 | $412 |
| Jul 2025 | $8,382 | $270 | $401 |
| Aug 2025 | $4,587 | $148 | $336 |
| Sep 2025 | $3,523 | $117 | $303 |
| Oct 2025 | $3,888 | $125 | $326 |
| Nov 2025 | $2,601 | $87 | $312 |
| Dec 2025 | $2,538 | $82 | $331 |
| Jan 2026 | $2,312 | $75 | $326 |
| Feb 2026 | $2,626 | $94 | $315 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 66% | 5,120 |
| Jun 2021 | 54% | 5,760 |
| Sep 2021 | 61% | 5,977 |
| Dec 2021 | 40% | 6,200 |
| Mar 2022 | 65% | 6,208 |
| Jun 2022 | 67% | 8,055 |
| Sep 2022 | 53% | 8,062 |
| Dec 2022 | 33% | 8,110 |
| Mar 2023 | 59% | 8,229 |
| Jun 2023 | 71% | 8,220 |
| Sep 2023 | 45% | 7,954 |
| Dec 2023 | 23% | 6,896 |
| Mar 2024 | 40% | 6,834 |
| Jun 2024 | 55% | 5,408 |
| Sep 2024 | 38% | 9,170 |
| Dec 2024 | 25% | 9,545 |
| Mar 2025 | 45% | 10,135 |
| Jun 2025 | 64% | 11,061 |
| Sep 2025 | 39% | 10,717 |
| Dec 2025 | 25% | 10,148 |
The core investment question in Panama City Beach is whether a property can generate enough revenue in a 4-to-5 month peak window to cover annual holding costs. The data gives a clear picture of what that looks like across the performance spectrum.
At the median (P50), a Panama City Beach STR generated $1,972 in February 2026. Annualizing from the monthly averages, a median performer earns roughly $3,993 to $4,248 per year based on 2023 and 2025 full-year averages respectively. The P75 performer earned $3,608 in February alone, with annual revenues meaningfully higher during peak summer months. Top-quartile properties (P90) hit $5,611 in a single February.
Typical home values sit at $407,797, with a median sale price of $417,983. At a 25% down payment, a buyer carries roughly $314,000 in financed debt. At a 7% mortgage rate, annual debt service on a 30-year loan is approximately $25,100. A median-performing property at roughly $4,000 in annual revenue does not cover debt service alone, which means cash-on-cash returns depend entirely on which performance tier a property achieves and how operating expenses are controlled.
Key risk factors to model: (1) The market has 2,036 homes currently listed for sale, suggesting sellers are not in a distressed rush (94 median days to pending, 0.958 sale-to-list ratio indicate a softening but not collapsed buyer market). (2) Supply continues to grow. (3) Seasonality is pronounced. Properties that underperform in June and July have little margin for recovery in the winter months. Conservative investors should underwrite to P25 revenue ($849 in February) and stress-test debt coverage before acquisition.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $338,661 |
| Dec 2021 | $397,870 |
| Sep 2022 | $467,209 |
| Jun 2023 | $463,389 |
| Mar 2024 | $467,147 |
| Dec 2024 | $448,463 |
| Sep 2025 | $428,970 |
Booking Insights
Panama City Beach booking patterns reflect the coastal vacation market’s mix of advance planners and last-minute bookers.
The average booking lead time is 58.3 days, but the median is only 25 days. The significant gap between mean and median indicates that while a meaningful share of bookings come in 60 to 90-plus days out (pulling the average up), the majority of reservations are made within a month of arrival. Operators who lock their calendars too early risk leaving revenue on the table; operators who hold for last-minute premium pricing risk vacancy during shoulder months when demand is thinner.
Average length of stay is 8.8 nights, with a median of 4.0 nights. Again, the gap between mean and median is notable. A subset of longer weekly and multi-week stays pulls the average well above the typical booking. For revenue management, this means minimum-night settings matter considerably. A 7-night minimum during peak weeks can secure longer high-value bookings, while flexible 2-to-3 night minimums in shoulder season help fill calendar gaps.
For pricing strategy, the data suggests a two-mode approach works best: publish peak-season rates 60-plus days in advance to capture advance planners, then apply dynamic pricing in the 0-to-30 day window to maximize last-minute fill rates. The 11% tax load should be clearly reflected in total price displays to avoid booking abandonment from sticker shock at checkout.
Short-Term Rental Regulations
Panama City Beach has a structured short-term rental registration system administered through the City’s Fire Department. All vacation rental operators must obtain registration before listing a property.
Required documents at registration include a completed Vacation Rental Registration Application, a notarized Vacation Rental Registration Affidavit, proof of a valid Florida Department of Business and Professional Regulation (DBPR) license, proof of Bay County Tourist Development Tax registration, and a valid Panama City Beach Local Business Tax Receipt. The initial registration fee is $250. Re-inspection costs $75. A lock-out fee of $100 applies if applicable. Properties with pools require a separate pool inspection.
On the tax side, operators face two layers of lodging tax. Bay County charges a 5% Tourist Development Tax on all rental income, including cleaning fees, resort fees, and other charges. Florida state sales tax adds another 6%. Total lodging tax burden is 11%. Critically, Airbnb and VRBO do not collect and remit this county-level tax on behalf of hosts, so operators must collect it directly from guests and remit it monthly to Bay County.
Violations carry escalating penalties: $500 for a first offense, $1,000 for a second offense, and $1,000 plus one-year certificate revocation for a third or subsequent violation within any 12-month period. Safety requirements include smoke detectors, carbon monoxide alarms, and fire extinguishers in compliance with local building codes.
For current forms and code references, the official resource is pcbfl.gov. Operators should also review Bay County’s Tourist Development Tax registration process separately from city registration.
Market Comparison
Panama City Beach sits at the large end of the coastal STR market spectrum. With 10,196 active listings and 17 million annual visitors, it dwarfs most comparable Florida Gulf Coast markets in raw volume.
The market’s 41.8% average annual occupancy in 2025 is below the broadly cited 50% threshold often used as a rough benchmark for STR viability. However, Panama City Beach compensates with ADR. The 2025 average of $318 is well above national STR averages, which the AirROI dataset pegs at roughly $175 to $220 for most non-coastal markets. The market’s RevPAR of $93.80 in February 2026 reflects both the lower occupancy and the elevated ADR working in combination.
The supply growth trajectory from 5,808 listings (2021) to 10,350 (2025) represents 78% growth in roughly four years. That is a faster supply expansion than most comparable Sun Belt coastal markets experienced in the same period. The impact is visible in the occupancy compression from 54.7% (2021) to the current range around 40 to 42%. Markets with more constrained supply pipelines, such as smaller barrier island destinations, have generally held occupancy better.
The housing market context also distinguishes Panama City Beach. A 94-day median time to pending and a 0.958 sale-to-list ratio point to a market where buyers have more negotiating room than during the 2021 to 2022 period. For STR investors, that translates to more realistic acquisition pricing than was available at peak.
Frequently Asked Questions About Panama City Beach, Florida
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