The Indiana half of Ray lies in northeastern Fremont Township in the northeastern part of Steuben County. Surrounding towns include Clear Lake to the southeast and Fremont to the southwest. The former Cedar Lake, now a marshy area, lies southwest of Ray and east of Fremont. The residents of Ray in both Indiana and Michigan, have no post office of their own; they are served by the Fremont, IN 46737 post office in Indiana and the Montgomery, MI 49285 post office in Michigan.
The Michigan half of Ray lies at the intersection of Delmar Road with State Line Road in the far southeastern corner of Branch County, on the southern edge of California Township. Nearby surrounding communities include California directly to the north; Quincy almost directly to the north; Montgomery to the east-northeast; and Coldwater (the county seat) to the northwest. A post office is located on the Michigan half of Ray, with the ZIP code of 48096. The ZCTA for ZIP code 48096, which includes nearly all of California Township, had a population of 3,904 at the 2000 census.