The Fire Escape Key is found in the third floor hallway of the Wood Side Apartments in Silent Hill 2. The key opens the fire escape on the second floor of the apartments complex, allowing entry into the Blue Creek Apartments. James Sunderland will first try to get this key by reaching for it from the other side of a grill, which separates the third floor hallway; however, Laura appears, stomps on his hand and kicks the key out of reach.
After using the key on the fire escape, James is presented with a window.