You've probably done the math on Kaufman the same way everyone does: find a price below what Forney or Rockwall is asking, map the commute to Dallas, and see if the numbers hold. The short answer is that they mostly do. Housing is the reason why — the typical home price sits well below what buyers face closer to the city, and the overall cost picture skews modestly below the national norm once you factor in Texas's no-income-tax structure and sales-tax exemptions on groceries. The catch, and it is a real one, is that the median household income here of $62,931 does not quite reach the level needed to comfortably carry the typical home price without careful planning. Buying here is achievable, but it takes a plan.
What actually drives the economics of daily life in Kaufman is a combination of Texas's tax structure — no state income tax, groceries untaxed at the register — and the reality of being a small county seat roughly 40 minutes from Dallas. The major employers anchoring the local economy are the Kaufman Independent School District, Kaufman County government, the City of Kaufman itself, and a regional health system serving the county. That mix skews toward public-sector and healthcare wages rather than tech or finance, which explains both the community's steadiness and the income gap with home prices that DFW-area demand has pushed up in recent years. For more on local employers and who moves here, see the living in Kaufman guide.
Day-to-day, Kaufman is a car-dependent town where most errands mean a drive. Summers are genuinely hot — electricity bills spike hard in July when air-conditioning load runs roughly 42% above the annual monthly average — and that seasonal cost is something newcomers from cooler climates consistently underestimate. The upside is that rent is low enough, and home prices are grounded enough, that a household with two incomes and a Dallas commute can build equity here while spending noticeably less than in most of the eastern DFW suburbs.
Whether you are weighing a first purchase, comparing Kaufman to nearby Terrell or Crandall, or just trying to build an honest monthly budget, the sections below break down Kaufman's housing market, everyday costs, a city-to-city cost comparison, and the full tax picture.
What It Really Costs to Live in Kaufman
Kaufman is genuinely affordable by DFW standards, but the word "affordable" needs grounding. The typical home price stood at $293,900 as of July 2026 (Zillow Home Value Index), and a household earning the city's median of $62,931 will find that price requires real stretching — ownership is within reach, but only if income, down payment, and debt load align carefully. This is not a market where the numbers work automatically.
The biggest source of Kaufman's cost advantage over the broader metro is housing. Groceries run close to the national average, utilities track near Texas norms with a summer spike, and transportation costs depend almost entirely on how far you drive and how often. Most errands require a car, so a commuting household pays full fuel and vehicle costs — that is the transportation reality to budget for.
Compared to the rest of the DFW Metroplex, Kaufman sits noticeably below what buyers pay in established eastern suburbs. Forney, which many buyers consider at the same time, runs somewhat higher on home prices. Terrell prices out at roughly the same level as Kaufman. Crandall comes in somewhat lower — a useful benchmark if you are price-sensitive and flexible about location within the county. Rockwall, farther north along the lake, runs substantially higher and appeals to a different buyer profile entirely. The side-by-side comparison with current figures appears in the "vs Nearby Cities" section below, where the engine keeps the numbers current.
Housing: Rent vs Buy in Kaufman
The typical home price of $293,900 (July 2026) is the anchor for every buy-vs-rent conversation in Kaufman. Entry-level homes — older construction, smaller lots — can be found below that figure, while newer construction in planned communities pushes above it. The best neighborhoods guide covers where different price tiers cluster across the city.
The effective property tax rate is approximately 1.73%. That figure is meaningful in Texas, where property tax does the work that income tax does elsewhere. One additional variable worth knowing before you make an offer: newer subdivisions in Kaufman County often sit within Municipal Utility Districts that layer a supplemental tax rate on top of the standard rate. Ask for the full tax assessment on any new construction or recently built home — the 1.73% effective rate reflects the county broadly, and MUD additions can push the all-in rate higher in specific developments.
Renting remains a real option. The city-wide typical rent of $1,330 per month (Zillow ZORI, July 2026) is well below what you would pay for a comparable unit in Forney or in any of the closer-in Dallas suburbs. For a household that is not yet ready to stretch to ownership, or that wants to test the commute before committing, Kaufman's rental market is among the more accessible in the county.
The honest read on renting versus buying here: if your household income is at or near the city median, renting may be the more sustainable starting position while you build a larger down payment. If you have meaningful equity from a prior sale — a common profile for buyers moving in from other Texas cities or from out of state — the purchase math tightens up quickly at this price point. The mortgage calculator just below this section will show you the monthly picture at current rates.
Everyday Costs Beyond Housing in Kaufman
| Category | Typical Monthly Cost | Notes |
|---|---|---|
| Housing (typical rent) | $1,330/mo | City-wide typical rent. Buying? Use the calculator above for a mortgage estimate. |
| Utilities | $190–$270/mo | Electricity, gas, water, sewer, trash |
| Groceries | $520–$700/mo | Food at home, household of 2–3 |
| Transportation & Gas | $200–$340/mo | Fuel, and transit where it is a real option |
| Phone & Internet | $110–$180/mo | Mobile plan plus home broadband |
| Misc / Discretionary | $220–$420/mo | Dining out, entertainment, subscriptions |
Non-housing figures are estimates for a household of two to three, not a sourced index; housing is the city-wide typical rent (Zillow ZORI, July 2026). Refreshed with the rest of the city data.
Groceries in Kaufman track essentially at the national average — a mild surprise to buyers who expect a deeper discount in a smaller market. The practical effect is that your food budget will land close to what you spent in a mid-sized city, not noticeably cheaper. One genuine advantage: Texas exempts food for home consumption from sales tax, so what you see on the shelf price is what you pay at the register.
Electricity is the utility cost that catches newcomers off guard. Kaufman sits in Texas's deregulated electricity market, meaning you choose your retail provider — Oncor handles the actual wires and delivery, but you shop for your supply rate. Typical monthly bills run in the $138–$165 range depending on plan and usage patterns. July and August are the months that reshape the annual budget, when air-conditioning demand pushes consumption roughly 42% above the annual monthly average. Budgeting for a meaningful summer spike is not optional here; it is standard practice.
Transportation costs are pure car budget. Most errands require a drive, and every working household in Kaufman is budgeting for fuel, vehicle maintenance, and the roughly 40-minute commute to Dallas each way on a good day. For a fuller picture of commute patterns and routes, see the living in Kaufman guide.
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Kaufman vs Nearby Cities: Cost Context
| City | Typical Home Price | Typical Rent | Cost vs Kaufman |
|---|---|---|---|
| Kaufman (this city) | $293,900 | $1,330/mo | — |
| Terrell | $282,678 | $1,713/mo | 4% lower |
| Crandall | $267,808 | $1,794/mo | 9% lower |
| Forney | $309,592 | $1,968/mo | 5% higher |
Source — home prices: Zillow ZHVI, July 2026; rent: Zillow ZORI, July 2026. Nearby-city figures are the same series, refreshed together.
Kaufman sits in a cluster of small DFW-area cities at broadly similar price points — close enough that the choice between them often comes down to commute angle and neighborhood preference rather than dramatic cost differences. The comparison table below this section keeps current figures for each city; here is the qualitative picture that helps you read those numbers.
Forney is the city most buyers weigh against Kaufman first. It runs somewhat higher on home prices, carries stronger school district recognition, and has more retail built out — which matters if driving out for every major shopping trip gets old. Buyers who prioritize school ratings and amenity access tend to land there; buyers who prioritize the lowest entry price tend to land in Kaufman or Crandall.
Terrell prices out at roughly the same level as Kaufman and has its own historic downtown character, though it sits farther from the main Dallas commute corridor. Crandall comes in below both — useful if you are stretching to make ownership work and have flexibility on location within the county. Rockwall is a different conversation entirely: lake access, substantially higher prices, and an established suburban infrastructure that Kaufman does not yet match.
Mesquite sits closer to Dallas and comes in moderately above Kaufman on home prices, but the commute is shorter and the rental market is more developed — a reasonable alternative for households where one partner commutes daily and the other works locally or remotely.
Taxes & the Bottom Line for Kaufman
The Income-Tax Advantage
Texas levies no state personal income tax — one of nine states with a zero individual rate. Kaufman residents owe only federal income tax on wages and retirement distributions. Social Security income carries no state tax burden at all, which is a material benefit for retirees and near-retirees running the numbers on whether to stay in Texas or leave.
Sales Tax
The state sales tax is 6.25%, and local jurisdictions can add up to 2% on top, bringing the maximum combined rate to 8.25%. Groceries — food purchased for home consumption — are exempt. That exemption is real money across a year of shopping. What you do pay full rate on: restaurants, retail goods, and most services. For a household that cooks at home regularly, the exemption is a genuine offset against the relatively high combined rate.
Property Tax: The Real Number to Watch
The effective property tax rate of approximately 1.73% is the figure that matters most to buyers, because Texas funds local services almost entirely through property taxes rather than income taxes. That rate applied to Kaufman's typical home price adds up to a real annual obligation. And as noted above, newer developments in Municipal Utility Districts can carry a supplemental rate that moves the all-in number higher — this is the single most common budget surprise for buyers new to Texas who see a home price they like without digging into the full tax picture.
Who Kaufman's Cost Structure Fits
Kaufman's overall budget equation works best for households with dual incomes, the ability to carry a Dallas or eastern DFW commute, and enough flexibility to absorb the Texas property tax model. Remote workers and government or healthcare employees who work locally will find the math comfortable at moderate income levels. The profile that tends to find Kaufman a stretch: single-income households at or near the city median, buying new construction in a MUD, with a long daily commute adding fuel costs on top. That combination puts pressure on every line of the budget simultaneously.
For buyers coming from higher-cost markets — or from states with meaningful state income taxes — Kaufman's no-income-tax posture and its housing prices compared to most of the DFW metro represent a genuine step down in total cost, even with property taxes factored in. See the first-time homebuyer guide for detail on financing and down payment programs.
Local Expert Takeaway: Kaufman's affordability is real but not automatic. The typical home price sits well below what buyers pay in Forney or the closer-in eastern suburbs, Texas's no-income-tax structure puts real money back in every paycheck, and groceries are untaxed. The catches are specific: the 1.73% effective property tax rate is high by national standards, MUD assessments in newer subdivisions can push that rate higher, and every commuting household runs a full car budget. Budget honestly for summer electricity bills — July demand runs roughly 42% above the annual average — and get the complete tax picture on any new construction before you make an offer.
Quick Takeaways & FAQs
✅ Kaufman's typical home price of $293,900 (July 2026) sits noticeably below comparable eastern DFW suburbs like Forney, making it one of the more accessible entry points into the Dallas metro area.
⚠️ The effective property tax rate of approximately 1.73% is high by national standards, and buyers of new construction should ask specifically whether a property sits within a Municipal Utility District that adds a supplemental rate on top.
📍 There is no state income tax in Texas, and groceries are sales-tax exempt — two structural advantages that meaningfully offset Kaufman's property tax burden for most households.
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