Investigators don't know what sparked the blaze but when fire crews arrived, they heard several popping noises believed to have been from cigarette lighters.
Crews responded quickly and were able to contain the fire from spreading to the rest of the building.
Two people were taken to the hospital, including one resident who received second degree burns while trying to put out the fire.
17 people have been forced to find another place to stay. They are being assisted by the Red Cross.