Palmetto's housing ranges from older, established homes in the city's historic core to newer single-family construction on its edges, reflecting the area's growth as part of the south Fulton and Coweta region. Lots tend to be larger than in the denser northern suburbs, and the city retains a semi-rural feel in places, with a mix of modest older homes and newer subdivisions. The market is predominantly single-family, and Palmetto's position between Atlanta and Coweta County shapes its appeal to buyers.

Palmetto is centered on its small downtown and railroad corridor, with older residential streets near the historic core and newer subdivisions spreading toward the city's edges. The community's two-county footprint means some neighborhoods fall in Fulton County and others in Coweta, a distinction that can affect school and service details. Surrounding countryside and the nearby city of Fairburn frame the area, giving Palmetto a small-town feel within a growing corner of the metro region.

Life in Palmetto is small-town and unhurried, with the railroad and Main Street at its center. Residents enjoy a quieter pace than the denser northern Atlanta suburbs, with local shops and community events anchoring daily life. The city's location offers the best of both settings: rural and small-town character at home, with Atlanta's employment, shopping, and the airport within a short drive to the north, and Newnan and Coweta County to the south. Outdoor and rural recreation is close at hand.

Palmetto is served by Fulton County Schools, the large public district that covers the cities of south Fulton, including Palmetto, Fairburn, Union City, and Chattahoochee Hills. Palmetto Elementary School is located in the city, and older students attend district middle and high schools elsewhere in the area. Families moving to Palmetto generally enroll through Fulton County Schools, with private and charter options available across the broader south metro region.

Palmetto sits near the I-85 corridor, which runs to the west of the city and connects it north to Atlanta and Hartsfield-Jackson Atlanta International Airport and south toward Newnan and Coweta County. U.S. 29 and other state routes provide local access through south Fulton. The city's position on the metro area's southern edge makes downtown Atlanta and the airport reachable within roughly 30 minutes, depending on traffic, while Coweta County lies directly to the south.

Palmetto's recreation is rooted in its small-town setting and surrounding countryside. Local parks and community facilities serve residents, while the nearby Chattahoochee Bend State Park and the Chattahoochee River offer hiking, paddling, and outdoor recreation within a short drive. The rural landscapes of south Fulton and Coweta counties provide open space, and the city's proximity to Atlanta puts the region's larger cultural and recreational amenities within easy reach.