Green’s Dictionary of Slang

1. (US) homosexual, also adj.

1974		R. Dennis Pimp for the Dead [ebook] I’d heard it, too, the giveaway in his voice. Real fay. Not that I had anything against homosexuals.
1974		R. Dennis Deadly Cotton Heart in Complete Hardman 1040‘: “But he’s not fey?’ [...] ‘It might just be that thin-blood in the southern upper classes, but I’m not pissing at any urinals next to him.’.

2. see ofay n.