When firefighters arrived they reportedly came in contact with the resident, who had a gun.
People who live in the complex say they watched as police had to kick the door down to get inside. They say the woman was taken out in handcuffs.
Neighbors say the woman had lived here for about a year, and they had called the police on her before for erratic behavior.
"It's nerve-wracking when you feel like people don't take you seriously. There have been reports made, nothing happens. They didn't take it seriously," neighbor Michelle Wright said.
"She was a good person and she had a good heart. She never ever did anything wrong except because she had stopped taking her medication, she acted that way," friend Michelle Wright said.
Investigators say the woman who lives in the apartment was removed and taken to the Regional Medical Center to be evaluated.
Neighbors say she was supposed to have been evicted on Sunday, but that didn't happen.
They say they believe she started the fire.
Authorities say they are still investigating the cause and origin, and they say there were no injuries. The damage is contained to just one apartment.