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Premiere: Halloween 2012
Season 2 is scheduled to premiere in late October 2012, to coincide with Halloween, explains FX CEO Landgraf “(It’s) a great fall Halloween show. The intent on the network side is for it to become a Halloween tradition for people who love the genre. Filming will begin in late July.
Time & place: Mental institution
The second season of American Horror Story will take place in an institution for criminally insane run by Lange's character. 
According to the latest news the story will take place in the 1960's. 
Jessica, Zac, Evan, Sarah and Lily returning, East Coast, institution, teenagers
Season 2 will be in a new location, in the East Coast of the United States in a horror institution (institution meaning hospital/psychiatric clinic or prison or orphanage e.g.). It will neither feature the Murder House nor will it feature the Harmon family or Tate Langdon. All filming however, will still take place in Los Angeles. 
On January 15, 2012, Jessica Lange was confirmed as returning for Season 2. Her Season 1 co-star Alexandra Breckenridge had already announced Jessica Lange's return on January 9, 2012.  Ryan Murphy himself publicly confirmed Jessica Lange's return on February 6, 2012 on Bravo's Watch What Happens Live. Ryan Murphy also announced that he was in negotiations with four other actors from Season 1 and that Taissa Farmiga, Dylan McDermott and Connie Britton would not return. At PaleyFest, Ryan Murphy announced that Evan Peters (who will be playing the season's hero this time ), Sarah Paulson and Lily Rabe will be returning in Season 2.  Jessica Lange and Zachary Quinto will be playing the main characters of Season 2.At PaleyFest, Ryan Murphy hinted that Taissa Farmiga, Connie Britton and Dylan McDermott could return for Season 3.
All actors will play completely new characters that are unrelated to the characters they played in Season 1: "The people that are coming back will be playing completely different characters, creatures, monsters, etc. [The Harmons] stories are done. People who are coming back will be playing entirely new characters." 
Ryan Murphy is mainly targeting movie actors to be apart of the new main cast: "Because the shooting schedule of AHS is much like a movie commitment (three months or so), and because each season will bring new cast members, Murphy has targeted film actors who he's wanted to work with to join the cast of season two. He reasons that since they'll only be attached to the show for one season, he can bring on people who have film careers so they won't be locked down for five seasons. "This allows for those who haven't done television to step up and say 'let's do this. I've been getting a lot of calls from film actors who have wanted to dabble in television but never could figure out how." 
The full new cast will be announced on Friday, March 2, 2012 at the PaleyFest at the American Horror Story Panel. Alexandra Breckenridge, Jessica Lange, Ryan Murphy, Brad Falchuk, Connie Britton, Frances Conroy and Dylan McDermott will be present.
Casting has been underway for Extras for Season 2: All 18 year old actors to play teenagers. 
On 11-APR-2012, Lizzie Brocheré was announced as playing a nemesis of Lange's character. The show producers described her as a femme fatale similar to Lisa Rowe, Angelina Jolie's character in Girl, Interrupted. 
On 22-MAY-2012 it was confirmed that Chloë Sevigny will be playing a character named Shelly, who will be a nymphomaniac patient at the asylum. Like Brochere's character, Shelly will also be at odds with Lange's character.  
Clues as to content
Ryan Murphy has said that a clue in the episodes "Smoldering Children", "Birth" and "Afterbirth" reveals what Season 2 will be about, the new location. 
The official "American Horror Story" tweeted during the show that there was a clue in last night's show as well: "There's a clue, pay attention!" and later "Little Noisy Monster... tell you anything?". 
Ryan Murphy said that the seasons would go with themes. The theme for Season 1 was "infidelity". 
Season will also contain period and true-crime elements, but it will neither be set in a standard one-family house nor will it be set in Los Angeles. Murphy did say there is a clue in the last three episodes about the new setting:“There is a clue in the last three episodes where we resay what the next season will be about.” Just like this year, every season of this show will have a beginning, middle and end. "[The second season] will obviously be in America, but in a completely different locale.” 
Ryan Murphy: “There are all kinds of different American horror stories to tell," added Murphy. "There are serial killing stories, prison stories, true crime stories… Each year of the show is designed to be a little miniseries unto itself. The only thing we’re not open to doing is a season on vampires.” 
There will be a whole new opening credit sequence. 
"Connie and Dylan will not be playing the leads of the show," Murphy reiterated. "But I'd love for them to come back and do something, albeit a different part or a smaller part or a cameo." He cites New York's Mercury Theatre, a troupe founded by Orson Welles and John Houseman in the 1930s, as an inspiration. "You have a cast of actors that you love and believe in and you just rotate them every season.... I have been getting a lot of calls from film actors who've always wanted to dabble in television." 
See also this article: http://www.avclub.com/articles/american-horror-story-to-completely-ditch-season-o,67002/
Interview with Ryan Murphy
FX's freshman hit finished its wild (Tate is Rubber Man!) and wicked (Violet killed herself!) season with a shocking jolt (spoiler alert for you DVR dawdlers): The entire Harmon family (Dylan McDermott, Connie Britton, Taissa Farmiga) ended up dead and trapped as ghosts in their haunted home. What does the bloodbath mean for season 2? EW talked to co-creator Ryan Murphy about what's in store.
- So what will season 2 look like?
RYAN MURPHY What I planned all along is it's an anthological series — every year there is a different house or institution that is haunted. This year it was the Harmon house. Next year, it will be something else that I know but I don't want to talk about yet. Some of the actors that have been in the show this year will stay as different characters, and some will come and go. I was really interested in what Orson Welles did with the Mercury Theatre — they always did different roles and different projects. So that's the setup.
- So the Harmon family will not be back next season?
MURPHY No. Although, interestingly enough, I think there is a possibility that we could revisit that story line in season 3 or 4. As of now, the plan is to do a different house, different haunting, different cast.
- What about Jessica Lange's Constance coming back?
MURPHY No. I might have a brainstorm in season 4 to do [something with] Constance and her grandson, like, in New York. But as of now, that story is done and put to bed.
- Can you give us any hint about what actors you're keeping?
MURPHY No, I can't. To get that caliber of cast in that one-year deal, everyone knew there was an end. It wasn't a typical TV show, which is how we got people like Connie and Dylan and Jessica. It's almost like a Twilight Zone approach to it. What I like is that people can really get invested in it and then they can have a conclusion. It's not something you have to follow for four years to figure out what the hell is happening, and every season will have the same resolution.
- When I spoke to you and co-creator Brad Falchuk in September, you said that each season would have a new theme, like this season's was infidelity.
MURPHY Yes. Next year we'll center in on one theme as told through the metaphor of that house.
- Will it take place in Los Angeles?
MURPHY No. It will be completely the opposite of what we've seen. We'll probably announce who's in it and where it will be set in February. I'm really excited about it because it's different and it's challenging. It's a lot of work to reboot something every year. What I'm excited about is using all of those music cues and putting them into a different story, doing a completely new title sequence with the same artist. I think hopefully the audience will love that there's a new mystery, a new house, a new way to do horror.
- Are you sad to say goodbye to things like Rubber Man and the infantata? Or is it exciting?
MURPHY I think it's sad for me to say goodbye to the relationships. I definitely will miss the Constance character. I'll definitely miss the Tate-Violet relationship. I'm really excited to come up with a list of completely crazy new creatures. It will not be another family in peril. It will be something else. I'm not going to say what it is, but the clue to what it is is in the "Birth" episode. Go through frame by frame. I planted it in there — but I will never reveal it. 
- Baltes, Alan, "Auditions and casting calls for 'American Horror Story' Season 2", TV Show Auditions, 16 January 2012
- Boone, John, "American Horror Story's Naughty Maid Sounds Off on Season Two!", Ted Casablanca's The Awful Truth, E! Online, 9 January 2012
- Ausiello, Michael, "American Horror Story Season 2 Spoiler Alert: Find Out Who Will and Won't Be Back!", 22 Dec 2011
- MacIntyre, April, "'American Horror Story' season finale reveals anthology magic, some thoughts", 22 Dec 2011, Monsters & Critics
- Paskin, Willa, "Next Season of American Horror Story Will Be in a Whole New Haunted House", Vulture, NY Mag, 22 Dec 2011
- Stack, Tim, "Scary Plans for Season 2", Entertainment Weekly, January 4, 2012