The T-45C Goshawk jet trainer crashed around 11:15 a.m. Sunday morning between the 4000 blocks of Tejas and Dakota in Lake Worth, Texas.
The aircraft pilot and a student pilot struggled on a routine training flight, with the couple forced to eject before the crash, The Sun reported.
It is understood that one of their parachutes became entangled in overhead power lines, causing widespread blackouts in the area.
The other pilot was found nearby, according to Lake Worth Police Chief JT Manoushagian.
Both taken to hospital, where one of them is said to be in stable condition.
The US Navy has confirmed the student pilot is alive and receiving treatment, but his current condition has not been announced.
The crash resulted in the displacement of residents of the six affected houses, some with the help of the Red Cross, but surprisingly no injuries were reported.
Smoke billowed from behind the houses in the neighborhood.
The US Navy identified the plane and said it was on a routine training flight after taking off from Corpus Christi International Airport.
While the cause of the crash remains unknown, the US Navy and other investigative teams are assisting in the investigation, while a security team is tasked with inspecting the damage.
The power cuts are expected to last for several days and three people have been treated and released at the scene.
Lake Worth Fire Chief Ryan Arthur said it “could have been a lot worse”, although up to 70 residents were reportedly affected by the crash while several homes suffered minor damage, although none of them were directly affected.