Officers were called by a concerned member of public who reported hearing what they believed to be gunshots at 7.26pm on Wednesday.
Police attended and spoke to the occupants of the property, confirming all three men inside were uninjured.
The police launched an investigation and later arrested a 29-year-old man.
Detective inspector Neal Candelent of Warwickshire Police said: "I would like to reassure the local community that we believe this was an isolated incident and that there was no further risk to the safety of members of the public.
"A thorough investigation was immediately launched and I can confirm a 29-year-old man from Rugby has been arrested today on suspicion of possession of a firearm. He remains in police custody at this time.
"Officers are continuing a number of enquiries to establish the circumstances around the incident, which has included reassurance patrols and a cordon of the property while searches have been carried out
Anyone with information is asked to call police on 101, quoting incident number 342 of November 29.
Alternatively, if you want to give information but don't want to give your name you can call the independent charity Crimestoppers on 0800 555 111 or use their anonymous online form at www.crimestoppers.org.uk .
Crimestoppers are not part of the police, when you contact them you won't be identified - the only person who knows you have given information is you.