The fire broke out on Crescent Terrace just before 3:15 a.m. and spread to an adjacent home on the dead-end street.
One of the homes has since collapsed, while flames were seen burning through the roof of another home.
Burning trees, downed power lines and low water pressure are hampering firefighting efforts. Crews have opened multiple fire hydrants, while PSE&G was called to cut power to live wires burning across the streets.
The flames have also caused a threat to nearby homes on Maier Street.
The homes involved are located at 1 Crescent Terrace, 3 Crescent Terrace, 13 Maier Street and 17 Maier Street.
Residents were preliminarily reported to have escaped the flames. There was no immediate word on any injuries.
The cause of the fire remains under investigation.
This is a developing story. Check back for updates.
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