Several people were killed when a small plane crashed in a California neighbourhood before dawn on Thursday, destroying a home and setting more than a dozen cars on fire.

At least 10 houses were hit by debris and vehicles on both sides of a street went up in flames when the Cessna 550 slammed into the ground, spewing burning jet fuel in a part of San Diego that is home to military families.

San Diego Fire Department Assistant Chief Dan Eddy told reporters one house had been badly damaged, but that no one on the ground had been seriously hurt.

"When (the plane) hit the street, as the jet fuel went down, it took out every single car that was on both sides of the street," he said.

The plane had six people aboard, according to the US Federal Aviation Administration.

One of the dead was identified as Dave Shapiro, a music agent who founded San Diego-based Sound Talent Group (STG).

The company said two other members of staff who were aboard the plane had also died.

"We are devastated by the loss of our co-founder, colleagues and friends," an STG spokesperson told US media.

The San Diego Police Department said on Thursday afternoon that at least two people had died, but first responders at the scene said the plane had been totally destroyed and they expected the toll to rise.

Investigators were combing the scene, picking through the scattered debris of the plane, which appeared to have broken into hundreds of pieces.

Bits of fibreglass were scattered among the twisted and charred remains of cars, and the smell of fuel hung in the air.

The accident happened in thick fog when the plane, which had come via Kansas, was nearing the Montgomery-Gibbs Executive Airport.

It was not immediately clear what had happened, but the fire department's Eddy said a nearby power line appeared to have been clipped.

The plane struck the Murphy Canyon neighbourhood, a residential area that is largely military housing. San Diego is home to US Navy facilities, Marine Corps bases and Coast Guard stations. (AFP)