Appliances from Dunedin, Lookout Point, Willowbank and St Kilda attended the well-involved fire at 3.30am yesterday.
The rented wooden villa was unoccupied at the time of the blaze which was being treated as suspicious, Southern Region safety fire officer Barry Gibson said.
"It is too early to say if accelerant was used," he said.
Police were appealing to the public for information about the fire.
Mr Gibson also investigated the remains of a shed and sleepout at Wyre St, Kaitangata, after a fire at 2.30am yesterday.
That fire was ignited by ashes.