The Federal Emergency Management Agency (FEMA) declared the community "wiped out" in the aftermath of the hurricane's devastating impact.

[1][2] Before Hurricane Michael, "the town was "old Florida," ... a collection of 50-year-old bungalows and newer vacation homes on stilts," where tourists walked on white sand beaches.

[11] The storm caused extensive damage to the community, and to the nearby Tyndall Air Force Base.

Brock Long, the FEMA administrator, told CNN that Mexico Beach was "wiped out" and referred to the community as "ground zero".

[12] The elementary school and city hall were among the buildings devastated;[13] the pier washed away, and the water tower was knocked down.

A report by the State indicated that roughly 285 people in Mexico Beach had declined to evacuate the area, although some of those may have left before the peak of the storm.

At that time, Mayor Al Cathey told residents it might be months before electricity, water, and plumbing were restored.

The climate in this area is characterized by hot, humid summers and generally mild winters.

As of the 2020 United States census, there were 916 people, 745 households, and 415 families residing in the city.

[19] As of the 2010 United States census, there were 1,072 people, 599 households, and 325 families residing in the city.