Lower Grand Lagoon is a census-designated place (CDP) in Bay County, Florida, United States. The population was 3,881 at the 2010 census. It is part of the Panama City - Lynn Haven - Panama City Beach Metropolitan Statistical Area.GeographyLower Grand Lagoon is located at .According to the United States Census Bureau, the CDP has a total area of 7.0km2, of which 5.5km2 is land and 1.5km2, or 21.68%, is water.DemographicsAs of the census of 2000, there were 4,082 people, 2,097 households, and 1,052 families residing in the CDP. The population density was 1,877.7 people per square mile (726.3/km²). There were 5,697 housing units at an average density of 2,620.6/sq mi (1,013.7/km²). The racial makeup of the CDP was 95.88% White, 1.18% African American, 0.59% Native American, 0.73% Asian, 0.07% Pacific Islander, 0.32% from other races, and 1.22% from two or more races. Hispanic or Latino of any race were 3.06% of the population.