If you have been eyeing North Texas investment property but feel priced out of some nearby suburbs, Kaufman may deserve a closer look. This part of the east-of-Dallas corridor offers a lower entry point than places like Forney, Mesquite, and Rockwall, while still benefiting from population growth, commuter demand, and access to major routes. If you want to understand where the real opportunities may be, what numbers matter, and what risks to watch, this guide will help you sort through it. Let’s dive in.
Why Kaufman Gets Investor Attention
Kaufman sits in a growing corridor east of Dallas, and that matters when you are evaluating long-term housing demand. NCTCOG estimates the city grew from 6,797 residents in 2020 to 7,438 in 2024, while Kaufman County grew from 145,310 to 161,562 over the same period.
Location is part of the appeal too. Kaufman County says Interstate 20 runs through the county, the area is about 30 minutes east of Dallas, and the county includes 15 cities and two colleges. For investors, that combination can support steady housing demand from people who want more affordability while staying connected to the broader Dallas-Fort Worth job market.
The local job picture also adds context. Kaufman County had 34,851 jobs and 2,500 employer establishments in 2023, and employment increased 14.9% from 2022 to 2023. With an average commute time of 35.6 minutes, Kaufman looks closely tied to regional employment patterns rather than operating as a completely isolated market.
What Makes Kaufman Different
One of Kaufman’s biggest strengths is its lower price point compared with several nearby markets. In March 2026, Redfin reported a median sale price of $200,000 in Kaufman, compared with $295,000 in Terrell, $300,000 in Mesquite, $387,000 in Forney, and $484,000 in Rockwall.
That lower basis is often what puts Kaufman on an investor’s radar. It can create more flexibility for buy-and-hold investors, value-add buyers, and buyers looking for a first rental or flip project. Still, a lower purchase price does not automatically mean stronger returns, so each deal needs careful underwriting.
Kaufman also appears more rental-oriented than the county as a whole. Census data show the city’s owner-occupied rate is 46.7%, while Kaufman County’s owner-occupied rate is 78.1%. That does not directly measure rental inventory, but it does suggest the city may offer a more rental-ready profile than the broader county.
Best Property Types to Watch
Single-family rentals
Single-family homes look like the deepest and most active investment category in Kaufman. Zillow’s March 31, 2026 home value index for Kaufman was $291,010, up 1.5% year over year, with 79 homes for sale, 18 new listings, and a median list price of $349,500.
Taken together with local sales data, investor entry points often appear to fall in the low-$200,000s to mid-$300,000s depending on condition, lot size, and location. For many buyers, that range is more approachable than neighboring suburbs that have already climbed to much higher median sale prices.
This property type also lines up well with local demand patterns. The county’s average household size is 3.36 and the city’s is 3.18, which can support demand for homes with functional living space rather than only smaller rental formats.
Small multifamily
Small multifamily may be harder to find in Kaufman than detached homes. Public market data suggest the visible inventory is still dominated by single-family product, with fewer clear signs of a broad duplex or fourplex pipeline.
If your strategy depends on small multifamily, you may need to expand your search radius or be open to off-market opportunities. In Kaufman itself, single-family homes appear to offer the more visible path for investors who want inventory they can actually evaluate and compare.
Flip and value-add properties
Kaufman can also attract flip or light-rehab buyers, but discipline matters. Redfin reported that homes sold in 42 days on average in March 2026, about 2% below list price, and 47.6% of listings had price drops.
That mix can create room for negotiation, especially if a property needs updates or stronger presentation. At the same time, nearby markets like Terrell and Rockwall had longer median days on market, which is a reminder to use conservative timelines, realistic resale assumptions, and controlled rehab budgets.
Rent Signals to Use in Your Underwriting
If you are estimating rental performance, it helps to start with broad local benchmarks instead of guessing. In the 2020-2024 ACS, median gross rent was $1,364 in the city of Kaufman and $1,554 in Kaufman County.
HUD’s FY2026 Dallas HMFA fair market rents, which include Kaufman County, were $1,648 for a one-bedroom, $1,931 for a two-bedroom, $2,431 for a three-bedroom, and $3,091 for a four-bedroom. Those figures are not guaranteed market rent for a specific property, but they can provide useful context while you build your assumptions.
Current rental examples in Kaufman also point to a modest single-family rental profile. Zillow rental examples included a three-bedroom at $1,500 and two-bedroom homes around $1,397 to $1,635. That is broadly consistent with the city and county rent benchmarks and gives you a rough starting point for comparing asking rent to acquisition cost.
How to Think About Demand
Kaufman’s demand story appears tied more to practical household needs than to short-term or highly transient renters. The city and county both show relatively large average household sizes, and the county’s commute pattern suggests many residents are connected to jobs outside the immediate area.
For investors, that may support demand from households looking for affordability and space while remaining within reach of Dallas and nearby employment centers. The county’s access to I-20 and US 175 supports that commuter pattern.
This does not mean every property will perform the same way. A home’s condition, layout, maintenance needs, and exact location still matter, but Kaufman’s broader setup can make it worth a closer look for buy-and-hold strategies built around steady, practical demand.
The Biggest Risk to Underwrite Carefully
Property taxes deserve close attention in Kaufman. According to the Kaufman CAD 2025 tax rate schedule, Kaufman County’s rate was 0.334478, the City of Kaufman’s rate was 0.759000, and Kaufman ISD’s rate was 1.255200, with the total depending on the property’s exact taxing entities and any special districts.
That means you should calculate taxes parcel by parcel before deciding a deal works. In Texas, local governments set tax rates, and tax burden can materially affect cash flow, especially on lower-margin rentals or flips.
You should also be careful with rehab assumptions and exit liquidity. Lower entry prices can be appealing, but if repairs run over budget or resale demand softens, returns can narrow quickly. Kaufman may offer opportunity, but it is still a market where the details of the individual property matter.
A Simple Way to Evaluate Kaufman Deals
If you are comparing Kaufman to nearby cities, try looking at each opportunity through a few practical filters:
- Purchase basis: Is the price meaningfully lower than comparable North Texas alternatives?
- Rent support: Do city, county, and current listing examples support your projected rent?
- Tax load: Have you checked the parcel’s actual taxing entities and projected tax burden?
- Condition risk: Is the rehab scope realistic for your budget and timeline?
- Exit plan: If you need to sell, does the local market pace support your holding-cost assumptions?
This approach can help you avoid chasing a “cheap” deal that only looks good on the surface. In a market like Kaufman, clean underwriting usually matters more than broad hype.
So, Where May the Opportunities Be?
For many investors, the strongest opportunities in Kaufman may be in single-family homes with a sensible purchase price, manageable updates, and rent assumptions grounded in local data. The city’s lower price point, commuter-market ties, and more rental-ready profile compared with the county overall are what make it stand out.
Small multifamily may be harder to source, and flips can work best when you buy with enough margin to absorb carrying costs and price pressure. In other words, Kaufman may not be a market for loose assumptions, but it can be a market where disciplined investors find workable opportunities.
If you want local guidance on Kaufman investment property, neighborhood-level context, or help comparing homes across Kaufman County, connect with The Cole Home Team. Their local knowledge, investor-friendly guidance, and full-service approach can help you evaluate opportunities with more clarity and confidence.
FAQs
Is Kaufman, Texas a lower-cost investment market than nearby suburbs?
- Yes. March 2026 data showed Kaufman with a median sale price of $200,000, below Terrell, Mesquite, Forney, and Rockwall.
What type of investment property is most common in Kaufman?
- Single-family homes appear to be the most visible and active investment category based on available listing and market data.
Are Kaufman rents high enough to support buy-and-hold investing?
- Rent support depends on the property, but city and county benchmarks showed median gross rent of $1,364 in the city and $1,554 in the county, with current rental examples generally aligning with a modest single-family rental profile.
Is small multifamily easy to find in Kaufman?
- Public market data suggest small multifamily inventory is thinner than single-family inventory, so buyers may need to search more broadly or consider off-market opportunities.
What is one major risk when buying investment property in Kaufman?
- Property taxes are a key risk to underwrite carefully because total tax burden depends on the parcel’s specific taxing entities and can significantly affect returns.
Does Kaufman appeal more to commuters or local-only renters?
- Available data suggest Kaufman has meaningful commuter demand, supported by the county’s 35.6-minute average commute time and access to major routes including I-20 and US 175.
