The man involved in a standoff with police in Levin lasting more than 30 hours is in hospital with critical injuries.
He was taken from the property in Bledisloe St shortly after firefighters put out a blaze inside.
Dozens of neighbours were evacuated from the area on Thursday as police officers spent more than a day negotiating with the man.
As of early Saturday morning, residents were no longer being kept away from their homes.
"Police and partner agencies have now completed an inspection of a Bledisloe St property, to ensure there is no ongoing risk to the community following the resolution of an incident at the property," police said in a statement just after 12:30am.
"Cordons in the area have been reduced and residents are able to safely return to their properties."
Police said cordons only remained around the concerned Bledisloe St property and a scene guard was in place overnight.
"Bledisloe St residents can expect to see a continued police presence in the street in the coming days but we want to reassure residents that there is no need for concern.
"Police would like to once again thank all those impacted by this incident for their support as we worked to achieve a peaceful resolution.
"We know this incident has been very unsettling for residents, particularly those evacuated from their homes."
Any directly affected residents who needed help were urged to contact Victim Support on 0800 842 846.
