This true with rifle calibers.
However, handgun bullet don't produce the magnitude of cavitation that rifle bullets do (5-7 times caliber) and therefore lack the ability to exceed the tensile strength of most tissues they act upon failing to damage them.
With handgun calibers, only permanently crushed tissue (that which comes into direct contact with the bullet) matters.
I think this is a gross oversimplification. What then is the velocity floor in which this cavitation occurs based on bullet diameter. We know for example the phenomenon occurs at lower velocities in 30 caliber that 22 caliber.
I have attached a document where the studies were first done and discussed on cavitation of bullet wounds. The studies were began nearly 100 years ago and "low velocity" projectiles were in the 500 - 1000 fps. The other critical issue was a round that shed its energy quickly.
Interestingly, the +P+ 9mm, 357 magnum, 357 Sig, 44 Magnum all achieve 1300 - 1500 FPS. I believe that this affect will be seen at anything over 1000 to 1100 fps (the speed of sound) and especially when you reach above 1300 fps. These handgun rounds do not seem to perform well in gelatin, but perform well consistently on the street.