Officials said 22-year-old Derek Smith fired at the officer, and then the officer opened fire hitting Smith.
The shooting happened Saturday morning at the home in the 900 block of Moss Road around 6:15 a.m. The officer was called to the home for a disturbance complaint. Smith's grandparents live at the home.
Zebulon police officer Travis Denny arrived just before the responding deputy. Police said Smith came out of the house with a rifle and fired at the officer. Denny allegedly returned fire striking Smith.
Smith was taken to WakeMed and then transferred to UNC Hospital.
Officials said Smith's grandparents, 81-year-old Willie Woods and his wife 64-year-old Betty Sue, were also taken to WakeMed for injuries they received while trying to take a gun away from Smith.
Denny is 25 years old and has been employed as a Zebulon Officer since Jan. 30, 2009. He was not injured in the altercation.
The sheriff's office said they called in help from Zebulon police because of a history of similar calls at the home.
The sheriff's office said the shooting is under investigation by the SBI, which is standard procedure for all officer-involved shootings. Denny has been placed on paid administrative duty while the investigations are ongoing.