The German police said that there were no casualties as result of the fire.
"The fire occurred at about 5 am (03:00 GMT) on Monday. At the moment it is localized, the work to extinguish the fire continues. We do not exclude the version of an arson; investigators will be able to enter the building during the day," Sputnik cited the police spokesperson as telling RIA Novosti.
According to law enforcement, the three-floor building was intended to provide shelter for refugees, but had not been rebuilt yet. Local authorities said earlier that the house would be rebuilt and would house refugees.
In recent days Germany has seen several incidents in which right-wing extremists have attempted to prevent the care and housing of refugees in shelters purpose-built for them.
On Saturday and Sunday, a group of suspected fascists clashed with police forces, protesting the opening of a new shelter for refugees in the eastern German town of Heidenau, leaving more than 30 police officers injured, according the local media reports.