The pilot is identified as 37-year-old Dennis McGurk. McGurk is an Atlantic City police officer. The other victim's identity is being withheld until next of kin can be notified.
No one on the ground was hurt.
State Police were checking reports that a second plane may also have crashed, but no sign of additional wreckage was found.
The charred remains of the small plane were right in the middle of Broad Street in Belleplain.
"I heard a loud crash and the house shook a little bit," said neighbor Carol Weygand. "The firefighters got the fire out right away."
The plane brought down electrical lines, knocking out power to many of the 400 residents. At least one witness tells police she saw the plane spiraling downwards, but it was unclear if the plane was doing aerobatics or if it simply went out of control. Officials believe the plane took off from nearby Woodbine Airport. Federal investigators are expected on the scene to try to determine what went wrong.
