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Fatal Frame 3 also does some really interesting things with its themes. But it is recommended to play 1 and 2 to get the most out of it. Since its like a SH3 situation but for its subplots.
Heard good things about Rule of Rose but havent yet played it.
Aside from the Silent Hill series I recommend Haunting Ground, the Remothered games and also the Resident Evil series. While Resident Evil isn't psychological horror its still a brilliant series and I personally find it a lot scarier than Silent Hill. I recommend 1-3, 7 and 8. Though 4 is also worth checking out as well, though its lower on horror.
Someone mentioned Rule of Rose as well. Although it has a great story and characters the game play is abysmal and also quite boring. I replayed it recently and didn't enjoy it much aside from the plot and characters.
I've heard good things about Forbidden Siren although its punishingly difficult. Also the Project Zero/Fatal Frame series gets a lot of praise as well. I've had a go with both but couldn't get into them. Want to try again with Project Zero though. There's also Tormented Souls as well; played a bit of that and so far its great. I have confidence that its going to be really good.
I think I was stuck in haunting ground because I stopped playing it. Not sure. I could retry though.
Resident Evil maybe some day. I really prefer psychological games
P.S. If I remember more games, I'll write them.
Upd 1. Fran Bow, Song of Saya,
https://store.steampowered.com/app/868520/killer7/
https://www.youtube.com/watch?v=aQJpCZFKLE4
Also Fatal Frame 3. Which is hard to find good teasers for older games. But this does a good first impression.
There is nothing quite like proper Silent Hill game out there. Greatly inspired by it - ofc there are, but not many. I was just mentioning some games with strong psychological horror element into them.
Rule of Rose is a must
Alan Wake is probably the closest you'll get in theme
Deadly Premonition
D, D2, Enemy Zero
Fragile Dreams, pretty sure there's a SH3 reference in there.
Yamaoka contributed to the recent Decarnation which is available on Steam. Haven't played it yet but it looks excellent.