The Daily Press newspaper quoted Virginia State Police as saying there was "one confirmed fatality within the residential structure".
Police say they are still working to locate and identify the pilot of the helicopter. Authorities said the helicopter went down around 4:30 p.m.in the 1100 block of Settlement Drive, which is near the campus of William & Mary.
The pilot of the helicopter is still unaccounted for, and emergency workers can not access the crash scene due to instability in the structure. The impact of the crash caused a fire in the townhomes in Williamsburg, CBS Richmond affiliate WTVR reports.
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The Federal Aviation Administration tweeted that Aviation Safety Inspectors arrived in Williamsburg around 7:30 Sunday evening.
"I was upstairs when I heard what sounded like a helicopter flying really low overhead".
"I just heard a loud 'bam" and the whole house was on fire, ' she said.
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She lived in one of the units beneath the crash.
The College of William and Mary said the incident happened near Dillard Complex and that people should avoid the area.
"Just want to say thanks to all of the emergency personnel who came out and kept everybody safe and also just praying for those who lost everything in the fire", said Chris Robertson.
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The National Transportation Safety Board plans a news conference Monday afternoon.