This study utilized 2013-2017 data from the National Health Interview Survey to evaluate the association between perceived neighborhood cohesion and mental health outcomes (serious psychological distress, anxiety, and depression) and how this association varies by race/ethnicity. This study also evaluated perceived neighborhood cohesion as a mediator of the relationship between homeownership and mental health. Results indicated that residing in a cohesive neighborhood is associated with reductions in risk (p<.01) for adverse mental health outcomes. Individuals living in cohesive neighborhoods had a reduced risk of 1.30 percentage points of serious psychological distress, a 4.10 percentage point reduced risk of anxiety symptoms, and a 3.80 percentage point reduced risk of depression symptoms. This study found a statistically significant reduction in risk of adverse mental health outcomes for those that own vs. rent their home and this relationship is partially mediated by neighborhood cohesion. These findings suggest that neighborhood cohesion provides a protective benefit against adverse mental health outcomes.