The Majority of the waterfront homes on Pensacola Beach are on the “Sound Side” or back side of the island opposite the Gulf of Mexico. Some of these homes are in gated communities. The restricted access often results in quieter neighborhoods with a bit more privacy. These neighborhoods often have Community Association rules that limit or prohibit short-term vacation rentals, so these sound front neighborhoods will often have a higher percentage of year round residents and second homes that are not rented by the week.

Many of these homes have seawalls and private docks with boat lifts. Some of the houses also have areas of sandy shoreline along the sound, providing them with their own private beach areas.

Panferio Drive runs the majority of the length of the back side or “Sound Side†of the island on Pensacola Beach. Although it is not a single defined neighborhood, this quieter street on the back side of the island is home to a number of water front private residences, and to a lesser extent, vacation rental homes.