The cut-off barrier island of Mantoloking, N.J., was beset by a large cluster of flames and smaller fires that quickly spread across the island, WABC-TV reported.
Video shows several structures burned to the ground. The exact size of the fire is unclear.
Authorities believe a gas main might have exploded and quickly spread across the island, WABC reported. The small town of Mantoloking sits between the Atlantic Ocean and the Barnegat Bay.
There were no firefighters at the scene because they were unable to cross the storm-damaged roads at the Mantoloking Bridge, the fire department in Bricktown, N.J., confirmed to ABC News.
Fire officials said they are figuring out how to get to the scene this morning.
Several homes were destroyed and continued to burn, but it is unclear whether the homes were destroyed by the fire or explosion, or before it, WABC reported.
Sandy destroyed about 14 homes in the town, according to The Associated Press.