Racial residential segregation is a defining and enduring feature of U.S. society, shaping inter-group relations, racial disparities in income and health, and access to high-quality public goods and services [1,2,3,4,5,6]. The design of policies aimed at addressing these inequities would be better informed by descriptive models of segregation that are able to predict neighborhood scale racial sorting dynamics [7,8]. While coarse regional population projections are widely accessible [9,10,11,12], small area population changes remain challenging to predict because granular data on migration is limited and mobility behaviors are driven by complex social and idiosyncratic dynamics [13,14,8]. Consequently, to account for such drivers, it is necessary to develop methods that can extract effective descriptions of their impacts on population dynamics based solely on statistical analysis of available data. Here, we develop and validate a Density-Functional Fluctuation Theory (DFFT) [15, 16] that quantifies segregation using density-dependent functions extracted from population counts and uses these functions to accurately forecast how the racial/ethnic compositions of neighborhoods across the US are likely to change. Importantly, DFFT makes minimal assumptions about the nature of the underlying causes of segregation and is designed to quantify segregation for neighborhoods with different total populations in regions with different compositions. This quantification can be used to accurately forecast both average changes in neighborhood compositions and the likelihood of more drastic changes such as those associated with gentrification and neighborhood tipping [17,18,19]. As such, DFFT provides a powerful framework for researchers and policy makers alike to better quantify and forecast neighborhoodscale segregation and its associated dynamics.