The city's fire department was called to a blaze about 6:30 a.m. on the ground floor of a single-room occupancy hotel in the Downtown EastSide.
A 56-year-old man suffered smoke inhalation, but otherwise no one was hurt.
Police say the fire does not appear suspicious, however it damaged a portion of the lower level, making it uninhabitable.
Emergency Social Services is now working to find temporary housing for those displaced.
Vancouver Police Sgt. Randy Fincham says it is important for the people to have a warm, safe place to stay over the holidays.