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Bullets penetrated the home in North Kellyville at 11pm last night, shattering a glass balcony and leaving holes in the door of the two-storey home.
NSW Police confirmed that they were called to the home after reports of a shooting.
Neighbours said they heard about 10 shots ring out
Three people, two men and a woman, were home at the time, NSW Police said.
9News understands the people inside the home were not known to police. No one was injured.
Early reports have suggested that someone well known to police was living in the home, but had moved out two weeks ago.
Detectives are investigating whether the home was wrongly targeted.
Fifteen minutes after the shooting, emergency services found a car on fire on Watergum Close in Rouse Hill.
The fire is being treated as suspicious, and police detectives believe the two incidents may be linked.
Anyone with any information is urged to contact Crime Stoppers.