The past two decades have ushered in a period of widespread spatial diffusion of Hispanics well beyond traditional metropolitan gateways. Residential segregation is framed by classical models of immigrant assimilation and alternative models of place stratification. Hispanics are integrating spatially with the native population and recent demographic and economic processes have eroded and perpetuated racial boundaries in nonmetropolitan areas. Hispanic residential segregation from whites is often exceptionally high and declining slowly in rural counties and communities. New Hispanic destinations, on average, have higher Hispanic segregation levels than established gateway communities. The results also highlight microscale segregation patterns within rural places and in the open countryside, a result that is consistent with emerging patterns of “white flight.” Observed estimates of Hispanic-white segregation across fast-growing nonmetropolitan counties often hide substantial heterogeneity in residential segregation. Divergent patterns of rural segregation reflect local-area differences in population dynamics, economic inequality, and the county employment base. Divergent patterns of local-area segregation often reflect spatial variation in employment across different industrial sectors.