The fire was at 11 Elm St. near the intersection of Elm St. and Middle St.
Assistant Montrose Fire Chief, Kent Brisby said there were four family members home at the time of the fire and they were all able to get out by the time firefighters arrived on the scene.
Brisby said they were able to get the fire out within 15 to 20 minutes.
Brisby said the investigator believes a lit candle was the cause of the fire.
Brisby said the family was able to save their Christmas presents and will be staying with relatives in town.
Lee County Sherrif, Stacy Weber said there were no injuries.