["Journal of Traumatic Stress, EarlyView. ", "\nAbstract\nThe current study assessed how mental health outcomes and related risk factors varied by proximity to the October 7, 2023, attacks by Hamas among a community sample from Ofakim, a town in southern Israel. Established cutoff scores on self‐report measures of posttraumatic stress disorder (PTSD), major depressive disorder (MDD), and generalized anxiety disorder (GAD) were used to estimate disorder prevalence rates. Background and trauma exposure were examined as risk factors in areas that differed in geographical proximity to the attacks. Participants were randomly sampled from two areas in Ofakim during June–August 2024: Sample 1 (S1) included 388 individuals in the attacked neighborhood, and Sample 2 (S2) included 329 individuals located elsewhere in town. Probable PTSD rates were significantly higher in S1 (56.4%) than S2 (44.7%), p < .001. The prevalence of probable MDD was 38.6% in S1 versus 28.7% in S2, p < .001. The prevalence of probable GAD was 42.0% in S1 versus 29.0% in S2, p < .001. In generalized linear models, there were no significant differences in mental health outcomes across neighborhoods. However, interactions between neighborhood type and risk factors emerged such that low income increased the likelihood of probable PTSD and GAD within the attacked neighborhood. The findings highlight the substantial mental health impact of mass trauma on an entire town, worsening with event proximity. Low income was a specific risk factor for individuals in the attacked neighborhood, which raises questions about whether economic support could buffer the impact of mass trauma in low‐income individuals.\n"]