"Neighbors From Hell" is the third episode of Cult. It premiered on September 19, 2017.
The community turns on Ally in the wake of an employee’s death. Beverly reports on a serial killer in the area. Ally and Ivy are the targets of a series of disturbing events. 
A woman (Rosie) describes her nightmare of being trapped, buried alive, to Dr. Rudy Vincent. She has conquered her fear, based on childhood trauma of parental entrapment in a cupboard. She credits him for the desensitization of her phobias. When she and her husband, Mark, return home he presents her with a surprise. Instead, the clown gang traps them inside coffins, which they screw shut.
The police haul away, Pedro, the man Ally had accidentally shot, and Samuels reminds her that she's not legally in trouble, and that she was well within her rights. The power comes back on, and Ivy comforts Ally. The next week, the restaurant is being picketed, calling Ally the "lesbian George Zimmerman". Ivy urges Ally to return home rather than face the protesters. Before she can drive away, Kai shows up at her car window to show his support for her actions. He says he will take care of the mob.
Upon her return, Ally pours a glass of wine and receives a knock at the door. The Wiltons show up in sombreros to complain about her "racism", reprimanding Ally for her actions. The latter sends them away.
The news (Beverly Hope ) reports Rosie and Mark's murder, also investigated by Samuels, but he won't link their crime with the Changs. An odd rumbling outside draws Ally and Ivy's attention to a truck spraying a gas outside. The next morning, Ivy searches for Ally, and finds her outside, where dozens of birds lay dead on their lawn. The city denies responsibility. An apologetic Winter arrives, summoned by Ivy. Ally forgives her for abandoning them. Winter also let in a man responding to an ad, who has stripped naked in their living room expecting sex. They chase him out, and speculate on who published the ad.
Rudy reads the ad, which keeps returning despite attempts to take it down. He urges her to have an emergency session the next day, or check herself into an inpatient facility. She is about to confront the protesters, and he urges caution. They mob her car, and Kai emerges to call them off; they respond instantly. Ally is surprised at the results.
Meadow has gifted Oz a guinea pig as a peace offering, and Ally takes the pet away. It turns out they are also friends with Samuels, who is visiting. Meadow hangs up on their complaint call, and Ally chases into the street, where she is nearly run over by another pass from the spraying chemical truck.
Meadow and Kai do the pinky ritual. She has a shallow answer to a question about her fears, for which Kai slaps her out of her chair for wasting his time. She apologizes, saying she hides behind her humor, and they begin again. He lists a number of her fears, including that her husband is more in favor of Samuels. Kai urges her to remake the world as she sees it.
Ivy prepares a meal for the family at the restaurant, including craft ice cream. Oz apologizes for rude words when Ally tried to separate him from his new pet, which they are allowing him to keep. The return home to find their door open, the clowns' symbol painted on their door, and arrive moments before the guinea pig explodes in their microwave. They run across the street to attack the new neighbors, who seem surprised that they're being accused of the acts against the family. The neighbors are surprised also at the door marking. Ally threatens them, over Ivy's protest. As they fight, Oz finds that the clown gang has marked the neighbor's house as well. The truck returns for another pass, and the masked driver emerges to spray their lawn directly. She uncovers the face only to find another mask: the smiley face of the clown gang.
Kai does the pinky ritual with Harrison, who describes his wishing that his wife were dead.
Ally describes the troubles they're having to Samuels, who asks Ivy if Ally is psychotic. He says they will set up surveillance, as they were authentically marked by the cult. Oz has uncovered a video of Winter's attempted seduction / sexual assault of Ally in the tub. Ivy is infuriated. They fight, intruded upon by Samuels. Ivy says she will leave with Oz, and that Ally should comfort herself with Winter and the visit from the clowns. Harrison discovers himself covered in blood, and the police accuse Ally of having kidnapped Meadow. He is handcuffed, and as the women watch, Oz disappears. They find him inside the house, which has bloody prints and the smiley face icon all over.
Rosie was a guest character in American Horror Story portrayed by Laura Allen.
Rosie was a patient of Dr. Rudy Vincent. She was affected by feretrophobia, the fear of caskets, and by extension taphophobia, or the irrational fear of being buried alive. Such phobia stemmed from her troubled childhood when her father used to lock her in a cupboard. Her phobia was ruining her marriage since every moment of intimacy ended up turning into a nightmare. With Dr. Vincent's therapy, she managed to conquer her fears, but she was killed along with her husband by the clown gang. Both were locked alive in coffins inside their house and found dead several days later.
Mark was a guest character in American Horror Story portrayed by Ron Melendez.
He was an apprehensive husband, worried about his wife's health. He was present during her last session therapy with Dr. Rudy Vincent, offering moral support to his wife. He found untimely death at the hands of a clown gang which locked him alive in a casket.
- Beverly Hope: "Coming to you from a neighborhood gripped in fear, this is Beverly Hope reporting."
- Kai (to Ally): " I told you I would take care of you. And I did. Have a nice day."
- Ally: "Christ. The world is going insane."
- Ally (to Oz): "Sweetie. Come on. You know we don't like cisnormative pet names."
- Mr. Guinea is killed in a similar fashion to how Hayden faked the death of Vivien Harmon's pet dog, Hallie in "Murder House."
- The clown gang leaves a bloody smiley face on every crime scene, or as a warning sign on targeted places. Similarly, a graffiti of Bloody Face was visible in the abandoned Briarcliff Manor in "Asylum."
- What are the real intentions of Dr. Vincent?
- Who killed Mr. Guinea?
- What is the meaning of the bloody smile?
- Is Meadow dead?