Updated 2026 · Based on median market data for Panama City, FL
Panama City sits in the South with a population of 50,000 growing rapidly at 1.9% annually. The median home costs $340,000 while rents average $1,670/mo, producing an estimated cap rate of 3.93%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.
Panama City is primarily an appreciation play. With home values growing 3.7% annually, equity gains may outpace cash flow. Best suited for investors with longer time horizons who can afford to break even or accept minimal cash flow while building equity. Consider house hacking or value-add strategies to improve returns.
Target properties priced 15-25% below the $340,000 median — around $272,000 or less. At this price point with $1,670/mo rents, your cap rate improves to roughly 5.3%. Factor in 0.86% property taxes ($2,924/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.2% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,152.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific Panama City property using our cap rate calculator (pre-filled with Panama City data). Compare Panama City against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
Panama City vs Florida state average and national average across key investment metrics. Panama City beats the national average but trails the Florida average on cap rate.