The emergence of geographic concentrations of non-heterosexual individuals – so-called “gaybourhoods” – is often linked to housing, demographic characteristics of the non-straight population and wider discrimination. These neighbourhoods are associated with narratives of gentrification with the non-straight population acting as gentrification pioneers. In popular imagery, non-straight households are typically portrayed with higher disposable income, and more likely to live in owner-occupied apartments in affluent neighbourhoods. This paper presents data from the Scottish Health Survey showing a disproportionate concentration of non-heterosexual people in the most deprived places in Scotland. These neighbourhoods are predominantly peripheral housing estates, dominated by social housing; not gentrifying inner-city neighbourhoods. We use data from the Scottish Health Survey (SHeS) to interrogate individual characteristics that might explain this spatial concentration of residence. We argue this means the narratives of LGBT gentrification and affluence should be regarded with caution given ongoing exclusion and deprivation among the non-heterosexual population.