Police say the first calls from neighbors about a crash in the 3600 block of Crandon started to come in at about 3:40 a.m.
A few minutes later, officials began to receive calls about gunshots.
When police arrived, they found a white car and a black car in the street that appeared to have hit each other.
A man with multiple gunshot wounds was found dead next to the white vehicle.
A stray bullet hit a woman who was inside her home at the time, striking her in the leg.
She was taken to the hospital, but is expected to make a full recovery.
Bullets also hit other vehicles in the neighborhood.
Along with multiple shell casings, investigators found two pistols and a shotgun that were left behind, said Sgt. Thomas Simmons with the HPD Homicide Division.
Simmons described the neighborhood, located inside the 610 Loop off Highway 59, as relatively quiet usually.
He also said the vehicles involved had paper tags, so investigators now have to figure out to whom the cars belong.
Police have no description of suspects or witnesses at this time, but plan to check the area for surveillance video.