PROBLEM: While mounting research suggests that neighborhood environment impacts mental health outcomes, for adolescents and adults, there is scant research on how perceived neighborhood context affects young adults. In this article, we explore the role of perceived neighborhood characteristics, specifically indicators of perceived neighborhood stressors, on emotional well-being among young adults. METHOD: Using a regional sample of young adults, we estimate regression-models to examine the relationship of perceived neighborhood stressors on three mental health outcomes (depressed affect, hopelessness, and anger), reflective of a general emotional well-being, while controlling for key individual characteristics related to mental health outcomes. FINDINGS: Results show perceived neighborhood effects for emotional well-being consistent with a stress process model where the scale of perceived neighborhood stressors is associated with poor emotional well-being for depressed affect and hopelessness. Specific perceived neighborhood measures were significant for each of the mental health outcomes whereby greater perceptions of unsafe conditions and economic hardship are positively associatedwith poor emotionalwell-being and greater social intervention and more social attachments are associated with better emotional well-being. CONCLUSION: For young adults, perceptions of neighborhood stressors are related to indicators ofmental health. We discuss the implications of our findings for ongoing research on neighborhood contextual effects and mental health during the transition to adulthood.