STORY: Footage showed firefighters at Belen Rosales neighbourhood, on top of roofs, trying putting out the fire.
Medellin's mayor, Daniel Quintero, said eight people were on board and that authorities had identified all of their bodies at the scene of the accident.
Quintero also said the plane broke into three parts and at least six buildings were hit, and seven homes were totally destroyed.
Colombia's Civil Aeronautics said the PA-31 type plane covered the route between Medellin and the municipality of Pizarro, in the jungle department of Choco.
The aircraft crashed to the ground minutes after taking off from the Olaya Herrera airport and hit a house causing a fire that was brought under control later by firefighters. Authorities have launched an investigation to establish the causes of the accident.