The neighborhood is in the town of Cameron. This incident occurred during a training exercise.
"A load of some kind was released early and we're looking into how it happened," said Michael Novogradac, a spokesman for the U.S. Army's Operational Test Command.
The C-17 aircraft carries supplies and equipment into war zones and, on Wednesday, the special operations team was practicing that type of scenario when the accident happened.
The incident is under investigation.