The rapid urbanization process has brought about the shrinkage of rural space as a typical issue. Nevertheless, due to the dearth of effective assessment approaches, the patterns of rural spatial shrinkage remain poorly grasped. This study intends to establish a quantitative assessment model to scientifically disclose the spatiotemporal characteristics and mechanisms of rural spatial shrinkage. The “Population-Industry-Function-Land” (PIFL) assessment model has been rigorously constructed, encompassing eight assessment indices, such as the ratio of permanent residents, rural population density, and the rate of abandoned cultivated land. The model was adopted to conduct an analysis of the spatial shrinkage scenarios of the 18 administrative villages in Panxi Town spanning from 2011 to 2021. The results indicate that the temporal dimension of rural spatial shrinkage exhibits an accelerating trend, with discernible declines or increases in the ratio of permanent residents, rate of the elderly labor force, and housing vacancy rate. The shrinkage of rural spaces displays spatial heterogeneity, with more pronounced shrinkage characteristics observed in villages located further from the central town. According to the comprehensive shrinkage index, the villages are categorized into four types: relative shrinkage (0.2447 ≤ Z ≤ 0.2462), mild shrinkage (0.2463 ≤ Z ≤ 0.4423), moderate shrinkage (0.4424 ≤ Z ≤ 0.6125), and severe shrinkage (0.6126 ≤ Z ≤ 0.7988). The research findings possess significant reference value for the governance of rural spatial shrinkage.