Rapid urbanization in developing countries has led to the expansion of informal settlements and the intensification of socio-economic deprivation, constraining economic independence, quality of life, and social participation among marginalized residents. This study aimed to identify the factors associated with the socio-economic empowerment of marginalized communities in Kermanshah, Iran, drawing on an integrated theoretical framework that combines Sen’s capability approach, Kabeer’s empowerment model, Putnam’s social capital theory, and Gurr’s relative deprivation theory. A survey method was employed. The statistical population comprised residents aged over 20 in four informal neighborhoods (N = 94,272), from which 400 participants were selected through multi-stage sampling. Data were collected using a researcher-developed questionnaire (Cronbach’s alpha = 0.855) and analyzed through confirmatory factor analysis, Pearson correlation, ANOVA, and stepwise multiple regression. Findings revealed that levels of social and economic empowerment were below the theoretical average, whereas relative deprivation and social deviance were above average. Relative deprivation and neighborhood deviance showed significant negative associations with empowerment, while residential satisfaction exhibited a significant positive relationship (p < 0.001). Regression results indicated that residential satisfaction, relative deprivation, and social deviance jointly explained 29.8% of the variance in empowerment. Significant differences were also observed across social class, income, employment status, and neighborhood of residence.