Fay was expected to skirt across the Panhandle's coast Saturday and the coast of Mississippi and Alabama on Sunday, forecasters said.
Though Fay never materialized into a hurricane, its zigzagging downpours have been punishing and deadly.
At least six people in Florida were dead from the storm, state officials said, and two more deaths reported Friday were believed to be Fay-related. The state attributed an additional death, before the storm hit, to hurricane preparedness after a man testing generators died of carbon monoxide poisoning.
"The damage from Fay is a reminder that a tropical storm does not have to reach a hurricane level to be dangerous and cause significant damage," said Florida Gov. Charlie Crist, who toured flooded communities this week.
Crist on Friday asked the White House to elevate the disaster declaration President Bush issued to a major disaster declaration. Crist said the storm damaged 1,572 homes in Brevard County alone, dropping 25 inches of rain in Melbourne.
Counties in the Panhandle - including Bay, Escambia and Walton - opened their emergency operations centers Friday in preparation for the storm's expected arrival there. To Florida's relief, forecasters expect Fay to weaken over the weekend and finally blow away before losing steam in Alabama, Mississippi and Louisiana.
In Steinhatchee, just south of Florida's Big Bend, bartender Dana Watson said she was bracing for a possible drenching. "It's moving real slow. We're waiting. We're just waiting."
In an area that can flood badly when high tide rolls in during a bad storm, she said most people remain prepared. "We've all got our generators filled up with gas and oil and our nonperishable food," Watson said.
At 5 a.m. Saturday, the center of the storm was located about 20 miles southeast of Panama City and moving west near 7 mph with sustained winds near 45 mph. The storm was expected to keep its strength and remain a tropical storm into Sunday.
Meanwhile, heavy rain in Fay's wake were causing widespread flooding across the Jacksonville area, near the storm's third landfall. Forecasters said some areas of Duval County had received up to 20 inches, and authorities reported an unknown number of homes and businesses flooded.