Relatively little research has attempted to disentangle the individual and neighborhood conditions underlying health disparities. To address this, survey data were collected from 1,107 residents living in one of the 114 census tracts. Results from a multilevel structural equation model found an individual's perceptions of the social and built environment were significantly associated with their current physical health, mental health, and perceived stress. Associations between household income and poor physical health were more pronounced for participants who lived in low‐income neighborhoods compared to participants who lived in high‐income neighborhoods. Additionally, Black residents reported significantly better mental health than White residents when they lived in high‐income neighborhoods, while Black residents who lived in low‐income neighborhoods reported significantly more stress than White residents in low‐income neighborhoods. Results of this study advance scientific understanding of social determinants of health and may aid in the development of programs and policies.