["\nPrevious research has linked racial residential segregation to a number of poor health outcomes. Yet, the mechanisms that could account for this association remain poorly understood and have seldom been empirically tested in the literature. In an analysis of the Houston area, we test one potential mechanism—perceived neighborhood conditions, as measured by two indices for neighborhood disorder and environmental quality. Using individual‐level health data from a survey of Houston residents and neighborhood‐level sociodemographic data from the U.S. Census, we estimate a series of multilevel models. We find that black and Latino segregation are linked to the perceived neighborhood disorder index, but no such relationship for the environmental quality index. Moreover, we find that both indices are related to poor self‐rated health in that residents who evaluate their neighborhood conditions negatively are more likely to evaluate their health as poor. We also find a direct effect of black and Latino segregation on poor self‐rated health, and that perceived neighborhood disorder partially mediates this relationship. We do not find a mediation effect for environmental quality. The results suggest that in order to improve the health of these communities, both residential segregation and neighborhood conditions need to be addressed.\n", "Sociological Forum, Volume 35, Issue 2, Page 393-418, June 2020. "]