Police confirm two separate homes were hit by gunfire, causing damage to both. (Stuart Dryden/QMI Agency)

CALGARY -- Residents in a southeast community are gripped with fear after gunshots rang out in the neighbourhood in an early morning attack that left bullet holes in two houses.

One shot cracked a living room window of one house, while two other shots put holes in the wall of another.

Duty Insp. Paul Stacey said people were inside both residences when the shots were fired about 1 a.m.

"At least one of the occupants in one of the rooms was narrowly missed, but at the end of it all, there were no injuries," he said.

Police are still attempting to determine if the houses were the intended targets and why, but residents have expressed serious concerns.

Mike Forest, who lives two doors from one of the houses, said he heard a series of loud bangs.

"It's nerve-wracking considering I have two teens," he said.

"It's scary," said the father, who was in his bedroom when he heard the shots.

The first thing he thought was where his boys were and he was relieved to find out they were in the basement hanging out with friends.

A resident, who requested anonymity for fear of retaliation after having reported area drug houses to police, said one home was targeted while the other was randomly shot at.

She claimed to have witnessed a number of drug deals going on in the back alley.

"We've reported them to the police again and again and the police are well aware of the houses but don't have enough information to take them down," she said.

"I was home alone one weekend and my dog started going crazy at the back door, the back gate and I walked out, there were eight teenagers leaned up at the back smoking joints," said the frustrated homeowner.

Residents said the street was lit Monday morning like it was daylight with the HAWCS helicopter circling the area and police dog unit combing back alleys.

Stacey said investigators don't know yet whether the gunplay was random or targeted.

"One of the reasons we don't know that yet is because we don't have any clue who shot the rounds into the homes," he said.

Investigators recovered some casings from the scene, which will be used to find out what kind firearm was used.