Video footage shows the moment a light aircraft crashed into the ground and exploded, sending a house up in flames.
The crash occurred in the Fairview residential neighbourhood, according to a report from the Multnomah County Sheriff's office.
In the footage smoke can be seen pouring from houses after the twin-engine aircraft fell from the sky.
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The area was also hit by a power outage affecting thousands of people in the area as a result of the crash.
Scott Lewis, the Gresham Fire Chief, said that five units in the neighbourhood had been affected by the fire and that four families would be likely to be displaced.
While injuries and possible fatalities have not yet been confirmed, the sheriff's office has said that initial reports suggested that three people are missing.
Of these two were reported as being on the plane, while the third is a resident who was reported missing after the crash.
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Authorities have confirmed that there have been injuries but are still unsure if there have been any fatalities.
John Plock, a public information officer from Multnomah County Sheriff’s Office, told a news conference on Saturday: "I know that there, there are injuries, I don’t know how many, I don’t know how severe, and I don’t know about fatalities."
Plock confirmed that the Federal Aviation Administration (FAA) will conduct an investigation into the crash.
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The officer also added that the aircraft had struck a tower holding up power cables.
“At some point during the crash, it hit a power pole or tower, causing it to fall over," said Plock.
This fire did not spread as it started in a swampy area.
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A statement from the FAA said: "A twin-engine Cessna 421C crashed near Troutdale Airport in Oregon around 10:30 a.m. local time on Saturday, Aug. 31.
"We do not yet know how many people were on board. The FAA and the National Transportation Safety Board will investigate. The NTSB will be in charge of the investigation and will provide any updates."
A representative from Portland General Electric (PGE) said that approximately 9,000 customers in the area were affected by the power outage.
They said in a statement: "PGE crews are onsite assessing damage to our lines and will communicate with customers when we know more about the extent of damage and restoration timeline."
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PGE confirmed that power has been restored to most residents in the affected area.
Kit Roberts