Grand Rapids mayor George Heartwell said police were searching for 34-year-old Rodrick Shonte Dantzler after the deaths were discovered in two homes in the south-west Michigan city on Thursday afternoon.

Mr Heartwell could not confirm any motive behind the shootings or Mr Dantzler's relationship to any of the victims.

Police said two women and a child were found dead at one house, and three women and a man were found at the other home.

The Grand Rapids Press reports the shootings appear to be linked to a domestic incident, as two women previously involved with Mr Dantzler are among the victims.

Police chased the suspect in a car before it crashed into a ditch and Mr Dantzler ran into nearby woods.

He entered an apartment north of the city and three shots were heard.

Police then received a call from Mr Dantzler saying he had taken hostages in the apartment because he was "unhappy" about the authorities chasing him.

Police dispatch reports said he was holding a man and a woman hostage and was "highly agitated" during several calls to officers.

At one point, he demanded a Gatorade drink and cigarettes and threatened to kill one of the hostages, according to the Press.

One of the hostages was released after about 45 minutes, while the other remained inside

The shooting is said to be the worst in the city's history.

Sandra Powney lives across the street from one of the homes where the shootings happened and said she had seen Mr Dantzler at the ranch house where she said a couple, who had been there for more than 20 years, lived with their two adult daughters.

"I've seen him there. He would come periodically," she said.

Ms Powney said she had been at home all day and did not realise anyone had been killed until police converged on the cul de sac about 3pm local time on Thursday.

"For a while we couldn't come outside," she said. "They didn't know if there was someone still inside the house."

State Corrections spokesman Russ Marlan said records showed Mr Dantzler was discharged from the prison system in 2005 after serving time for assault. He has not been under state supervision since then, Mr Marlan said.

AP, AFP and smh.com.au