Five people – four men and one woman – have been arrested after a shot was fired at a house in Altmore Gardens in Newry.
No one was injured but police arriving at the scene made the arrests and seized two cars.
Newry SDLP Councillor Michael Savage said it is miracle no-one was killed or badly injured.
He said: “We all thought the days of guns on our streets were over.
“This is an act of lunacy and it is a miracle no-one has been killed or badly injured as a result of shots being fired at a house in a built up area. Local people are furious that this can happen in their area.
“I would urge anyone with any information about this incident to contact the PSNI.”