The tattooed twosome were spotted holding hands in Fredericksburg, Texas, near Austin where James has relocated for business purposes and so that his kids can be closer to their stepmom, Sandra Bullock.
"They're definitely not hiding anything at this point," a source close to Von D tells PEOPLE. "Kat’s happy. She doesn’t really care what other people think. She’ll do what she wants regardless."
James and Kat Von D, who reportedly rode in on a motorcycle and visited a World War II museum during their time in the small tourist town, "didn't go unnoticed" by onlookers, according to RadarOnline.com.
The public outing comes two weeks after James, 41, and the LA Ink star, 28, were first spotted getting cozy in Las Vegas.
"Just because I have tattoos doesn't mean, 'Oh, you guys are a perfect match,' " Von D recently told a L.A. radio station. "I think that I'm [Jesse's] type on a different level than people would assume."
Reporting by JESSICA HERNDON