Fire crews were called out to the 1400 block of Memorial Avenue, which is a small alley off Pacific Avenue, around midnight where they found flames shooting from a building.
With the fire quickly spreading throughout the property fire crews called in a second alarm.
In an attempted to escape the flames, a woman dropped her two children out of a second floor window to rescuers below, she then jumped to safety.
An elderly man also had to be rescued. Firefighters helped the man out of a window and guided him down a ladder.
The fire has left thirty adults and seven children homeless. They are currently being provided shelter at the Days Inn in Egg Harbor Township.
One of the residents using a hot plate reportedly sparked the fire accidentally.