Officers remained in the area on Tuesday morning after originally being called out at 11.15pm on Monday night.
Witnesses reported hearing numerous loud bangs in the area, with the first police patrol hearing further shots as it approached the scene.
Police told the TT news agency that they believed several people shot at an apartment block, smashing two windows. But nobody was hurt in the attack.
“I first heard four shots and then I heard four more right afterwards,” one resident told regional newspaper Sydsvenskan.
“It’s a pure miracle that no one was hurt in the extensive gunfire that took place,” Hans Nilsson, duty officer at Skåne police told TT.
By Tuesday morning police said they had made 27 arrests, with some suspects accused of attempted murder and others quizzed over related violent crimes.
Officers said they did not want to speculate on whether the attack was linked to violence in the same area on Sunday night.
But the suburb has a reputation for gun and gang-related crimes as well as race-related violence between different immigrant groups living in the increasingly diverse neighbourhood.
Just four kilometres outside Malmö city centre, it is estimated that 86 percent of the district's residents have immigrant backgrounds.
Earlier this year a secondary school in Rosengård was briefly closed after the teachers' union declared that it was too dangerous a place for students and teachers to attend due to widespread violence and criminality.