It happened before midnight on Levin Avenue and Spruce Street.
Investigators say that the driver of a GMC Yukon lost control of their vehicle for an unknown reason. The SUV slammed into one house and then came to a rest inside another house next door.
The driver took off running and has not yet been found. Their passenger also tried to escape but was caught by officers.
Two elderly women were trapped inside the first house, but Tulare firefighters were able to help them.
"There was two elderly women sleeping in their beds and the debris pushed in and actually trapped both of them inside. One of them had significant injuries, the other was transported to the hospital with minor injuries," said Fire Division Chief David Rossman.
The crash took out some exterior and interior walls of both homes.
Investigators are still searching for the driver. They spoke with the passenger and tried to get more information about what led up to the crash.
Both houses were boarded up before Tulare police cleared the scene.