The Uglies by Terry Hayman

It's 1969, and Bobby's just returned from Vietnam with a Purple Heart and the wrecked face and arm it honors. Unfortunately, the small town he's returned to no longer welcomes folk who are maimed, deformed, diseased, or otherwise "disgusting." In fact there's a push on to not just fine them, but actively round them up.
Well, that's clearly not going to fly. Not when Bobby may have finally found a woman who makes his life worth living, who, like Bobby, happens to fit into the town's definition of ugly.
It's time to take a stand.