Yes.
205 on a 7 isnt a stretch at all.
I have a friend who runs 185s on a TEN inch wide rim, now THATS a stretch, and looks the bollocks too (if you into that kinda thing).
Lower profile sidewall means cant stretch as much, but going down to 195 or 185 is fucking childs play, hell they normal sizes on a 7in wide rim really, thas not even stretching em...