Officials say the fire broke out around 1:30 am on Avenue 272, just east of Demaree.
The flames grew, and eventually, the trees and plants near the shed caught fire as well.
The fire spread into a nearby house where two people were living. Officials say the residents were able to make it out safely.
Firefighters doused the blaze, but the interior of the house sustained severe damage.
Investigators are looking into how the fire started, and if the home was still safe to occupy.