Cowboys #23 Pick Residency Analysis

Malachi Lawrence is headed to Dallas after being selected with the No. 23 overall pick in the 2026 NFL Draft, and the young man enters the league with a ~$20.2 million rookie contract and an ~$11 million signing bonus.

Before the UCF edge rusher plays a single snap for the Dallas Cowboys, his residency picture is already one of the cleanest in the class:

College state: (Florida)
Drafted state: (Texas)
Home state: (Kentucky)

For a 22‑year‑old pass rusher with eight-figure guarantees and big extension upside, that’s a dream setup, as long as he doesn’t drift back into a Kentucky tax home.

APSM breaks down Lawrence’s real estate and residency landscape across his new NFL financial landscape and suggests where the rookie could establish his primary residence to maximize his net worth.

Does Malachi Lawrence Own Any Property?

Lawrence was born and raised in Louisville, Kentucky, starring at DuPont Manual High School before becoming a high‑impact edge rusher at UCF.

There are no public records of him owning real estate in Kentucky, Florida, Texas, or elsewhere. Given his profile:

Solid NIL earner at UCF, but not Caleb Williams‑level
Likely rented during college
Probably focused NIL money on training, lifestyle, and savings

Now, with an ~$11 million signing bonus on the way, this is his first true wealth‑building window.

Market #1: Kentucky (Home State)

Median Home Price: ~$220,000
Property Tax Rate: ~0.8–1.0%
State Income Tax: ~4.5% flat
Cost of Living: ~10-15% below U.S. average
Market Trend: 3-5% annual appreciation (Louisville, Lexington)

Pros

Very affordable housing
Low cost of living
Familiar environment and support system
Decent long‑term rental potential in Louisville/Lexington

Cons

~4.5% income tax on high NFL earnings
Higher effective tax burden than both Florida and Texas
No reason to make it his tax home when 0% options exist

Market #2: Florida (College State)

Lawrence played his college ball at UCF in Orlando, which means his NIL and college‑era income already benefited from 0% state income tax.

Median Home Price: ~$410,000
Property Tax Rate: ~0.8–0.9%
State Income Tax: 0%
Cost of Living: ~10-15% above U.S. average (Orlando/Tampa/Miami)
Market Trend: 5-8% annual appreciation (Orlando, Tampa, Miami)

Pros

0% state income tax
No state tax on signing bonus
Strong rental and luxury housing markets
Homestead protections and asset‑shielding benefits
Great long‑term wealth environment for pro athletes

Cons

High insurance and storm risk in some markets
Volatile pricing in certain coastal luxury pockets

Florida is an elite financial base, and Lawrence already has roots there from UCF. It’s a perfect secondary or offseason hub.

Market #3: Texas (Drafted State)

Lawrence now lands with the Dallas Cowboys, one of the strongest brand + market combinations in the NFL.

Median Home Price (Texas): ~$320,000
Property Tax Rate: ~1.6-1.8% (high)
State Income Tax: 0%
Cost of Living: ~5-10% below U.S. average (outside core Dallas/Austin)
Market Trend: 4-6% annual appreciation (DFW, Austin, Houston)

Pros

0% state income tax (same as Florida)
Massive endorsement and branding upside with the Cowboys
Strong long‑term appreciation in DFW suburbs
Business‑friendly environment
Easy to live near team facilities and keep residency aligned

Cons

High property taxes
Some markets (Frisco, Plano, parts of Dallas) are getting expensive

Texas is exactly where you want to be as a first‑round edge rusher:

0% income tax
Big‑market brand
Strong real estate upside

Lawrence should lock in Texas residency and never look back.

Best Housing Markets, Rental Markets & Appreciation Rates

Kentucky

Best housing markets: Louisville suburbs, Lexington, Oldham County
Best rental markets: Louisville, Lexington
Appreciation: 3-5% annually

Florida

Best housing markets: Orlando, Tampa, Miami
Best rental markets: Orlando, Tampa, Miami
Appreciation: 5-8% annually

Texas

Best housing markets: Dallas–Fort Worth (Frisco, McKinney, Prosper, Plano), Austin suburbs, Houston suburbs
Best rental markets: DFW core, Austin
Appreciation: 4-6% annually

APSM Take

Texas is the best blend of brand + tax + appreciation.
Florida is an elite secondary market and offseason base.
Kentucky is a family/emotional market, not a primary wealth engine.

Property Tax & Capital Gains

Property tax

Kentucky: ~0.8–1.0%
Florida: ~0.8–0.9%
Texas: ~1.6–1.8%

Capital gains (state level)

Kentucky: ~4.5% (taxed as income)
Florida: 0%
Texas: 0%

Texas and Florida both win on income and capital gains taxes. Texas loses slightly on property tax, but the 0% income tax + Cowboys ecosystem more than offsets it.

Residency impact on Lawrence’s signing bonus

Gross Signing Bonus: $11,000,000
Federal Tax (37%): $6,930,000

Residency State	State Tax Rate	State Tax on Bonus	Estimated Net Signing Bonus
Texas	0%	$0	~$6.93M
Florida	0%	$0	~$6.93M
Kentucky	~4.5%	~$495,000	~$6.44M

Texas/Florida vs Kentucky could save Lawrence ~$495K more in Lawrence’s pocket by keeping residency in a 0% state. This is a half‑million‑dollar home‑address decision.

Investment scenario: Turning ~$6.9 million into Wealth

Using the Texas residency scenario (and Florida):

ROI Rate (5 Years)	Projected Value
10% Return	~$11.2M
12% Return	~$12.2M
15% Return	~$13.9M
20% Return	~$17.2M

If Lawrence invests his entire net signing bonus and lives below his means, he can turn ~$6.9 million into $11+ million before touching a dollar. That’s how you go from “rookie contract” to generational wealth, even if the second deal never fully hits.

Jock Tax Considerations

He’ll still pay jock taxes in states he plays road games in.
But his home base, where his signing bonus and investment income are taxed, which matters far more.
Texas residency means:
- No state tax on signing bonus
- No state tax on base salary earned in Texas
- No state tax on long‑term investment gains

APSM Real Estate Verdict

Texas should be his primary residence.
Florida should be his secondary/offseason market.
Kentucky should be a family base, not a tax home.

If Malachi Lawrence wants to maximize his rookie earnings, protect his signing bonus, and build long‑term wealth, the suggested move is simple:

Establish Texas residency immediately.
Buy smart in the Dallas–Fort Worth suburbs.
Use Florida for offseason training and lifestyle.
Avoid ever tying his tax home back to Kentucky.

He quietly has one of the best financial setups of any defender in this class.

Suggested real estate strategy for Malachi Lawrence

Primary residence: Texas (Prosper, or DFW suburb near team facilities)
Secondary: Florida condo/house in Orlando or Tampa for offseason training and rentals (long-term backup plan)
Family base: Maintain ties in Louisville without using it as a tax address
Invest: Majority of signing bonus into index funds, mutual funds + Texas/Florida real estate and other historically proven appreciable assets
Goal: Turn ~$6.93 million into $11-17M+ by Year 5 (extension year)

Dallas Cowboys & Texas Athletes Residency & Tax FAQs

What is Malachi Lawrence’s rookie contract worth?

Lawrence signed a 4-year, approximately $20.2 million rookie contract as the No. 23 overall pick in the 2026 NFL Draft, with an ~$11 million signing bonus included in the deal.

Why should Malachi Lawrence avoid Kentucky residency?

Kentucky levies a flat 4.75% state income tax. Establishing residency there instead of in Texas (0% income tax) would cost Lawrence approximately $495,000 in additional state taxes on his $11 million signing bonus alone, a half-million-dollar home address decision.

Does Texas residency protect Lawrence’s entire signing bonus from state income tax?

Yes for the state level. Texas has no state income tax, meaning his ~$11M signing bonus is only subject to federal income tax (37%) when domiciled in Texas. After federal taxes, he takes home approximately $6.93M, compared to roughly $6.44M if he were domiciled in Kentucky.

What is the best real estate market for Malachi Lawrence in Dallas?

The DFW suburbs, Frisco, McKinney, Prosper, and Plano, offer the best combination of appreciation (4-6% annually), proximity to Cowboys facilities in Frisco, low cost of living relative to the market, and long-term investment upside. Florida (Orlando/Tampa) works as an offseason secondary market.