The sensitivity of experimental searches for axion dark matter coupled to photons is typically proportional to the strength of the applied static magnetic field. We demonstrate how a permeable material can be used to enhance the magnitude of this static magnetic field, and therefore improve the sensitivity of such searches in the low frequency lumped-circuit limit. Using gadolinium iron garnet toroids at temperature 4.2 K results in a factor of 4 enhancement compared to an air-core toroidal design. The enhancement is limited by magnetic saturation. Correlation of signals from three such toroids allows efficient rejection of systematics due to electromagnetic interference. The sensitivity of a centimeter-scale axion dark matter search based on this approach is on the order of $g_{agammagamma}approx10^{-9}$ GeV$^{-1}$ after 8 hours of data collection for axion masses near $10^{-10}$ eV. This approach may substantially extend the sensitivity reach of large-volume lumped element axion dark matter searches.