Community-based, Judaism-intensive action groups (Hebrew: Gar'inim Toraniim--GTs) are religiously motivated to settle in Israeli development towns, seeking to narrow social gaps through education. However, their influence has never been fully clarified. This study is grounded in the theory of educational gentrification and introduces the concept of Faith-Driven Gentrification. Until now research has lacked voice from local people forced to face the intervention of settlers driven by religion and their influence on urban school systems. The findings, based on institutional data and in-depth interviews, show that GTs alter the structure of educational systems and the dominant educational ethos. They drive achievement and strict religiosity; nevertheless, their actions impair disadvantaged groups and opponents of their religious lifestyle, intensifying segregation. By giving voice to these communities, this study claims that despite gentrifiers' commitment to social justice in urban communities, they harm longtime residents through indirect displacement, fueled by religious and ethnic elitism.