It happened just after 1:00 am on Tulare Street and Lincoln Avenue.
Firefighters arrived to find flames burning a two-story house.
During the fire, a gas line broke, creating a dangerous situation for both the fire crews and nearby residents.
Madera police officers had to evacuate between 30 to 40 neighbors until PG&E could shut off the gas line.
The people were out of their homes for a little more than two hours.
The house that burned was destroyed. Fire officials say the home was abandoned and had been the scene of a previous fire.
The cause of the fire is under investigation.