Funny River is the local name of a nearby stream, first published in 1904 by the U.S. Geological Survey. Homesteading and farming expanded to the Funny River area during the late 1950s and early 1960s. Funny River Road originated as a bulldozed trail from Soldotna to the homesteads, and was upgraded to a gravel-surfaced road in the mid-1960s.
3.5% of the population are Alaska Native or part Native. There is no school in Funny River; 61 students are bused to Soldotna area schools. The community is primarily non-Native, however, a large portion of the land in this area is owned by Alaska Native corporations. The Central Peninsula Sports Center in Soldotna offers an ice rink, racquetball courts, weight room and meeting facilities.

During the 2000 U.S. Census, there were 621 total housing units, and 343 were vacant. 307 of these vacant housing units are used only seasonally. 257 residents were employed. The unemployment rate at that time was 23.05%, although 54.75% of all adults were not in the work force. The median household income was $43,047, per capita income was $22,648, and 3.5% of residents were living below the poverty level.

Most homes in this area have complete plumbing. Occupied houses use individual water wells and septic tank systems or privies. The Borough provides a refuse transfer site at mile 9 Funny River Road.
Electricity is provided by Homer Electric Association.

There are no state operated schools located in the community.

Auxiliary health care is provided by Central Emergency Services (262-4792/4453) and Central Peninsula Hospital in Soldotna.

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