I live in Panama City, Fl... I spent most of my formative years living in Lynn Haven. Lynn Haven itself is practically part of Panama City. The area runs together in general, but Lynn Haven still maintains a little bit of separation from Panama City. It's mostly very quiet residential areas and small businesses. The schools in Lynn Haven are nice. The high school is A. Crawford Mosley High School, one of 4 high schools in the Panama City/Panama City Beach area. It's a good school and tends to get good marks on standardized test ratings as well as teacher ratings. I went to school there and I turned out alright.

There's a relatively new K-12 center that's opened for more rural students, and I believe that's taking some of the burden off of Mosley High. There's very little crime in Lynn Haven itself, and not much crime in the area, I don't think. The town's not too thrilling (Lynn Haven or Panama City, for that matter), but Lynn Haven does have its own community theater, which is wonderful! It also has a fairly small community center.
The area (Panama City) in general is alright. Just like any town it has its really nice spots and its not so nice ones. The other 3 high schools (2 more in town and 1 on the beach) are all perfectly fine and offer some pretty varied schooling options for a town this size. For instance, one is geared towards the Performing Arts, one belongs to the IB (International Baccalaureate) program, etc.. (they all have special programs of some sort, I think).
Um, we rent at this point, so I'm not sure on cost of homes, but I'll look into it. I know the price has gone up a bit in the last few years due to extensive development on the beach. I'll try to get some figures for you (I have friends who work with real estate) and let you know. Anymore questions?