The apartment of Moaz al-Masry, who was killed by Israeli forces following the April 7 attack, was demolished in the early hours, Palestinian witnesses and the Israeli military told AFP.
The Palestinian Red Crescent Society said their medics treated about 15 people after Israeli forces fired tear gas during the raid on the West Bank city of Nablus.
Masry, along with two other attackers, was accused of shooting dead Israeli settler Leah Dee and her daughters Maia and Rina as they were driving near Hamra in the Jordan Valley.
Following a manhunt, the assailants were killed in a military raid on Nablus in May.
Troops overnight into Monday stormed the Al-Makhfiya neighbourhood in Nablus and surrounded Masry's house, a witness told AFP.
Israel routinely demolishes the homes of Palestinians accused of carrying out attacks, arguing that such measures act as a deterrent, while critics say it amounts to collective punishment.
The Red Crescent told AFP they had evacuated multiple residents, including children, from the building housing Masry's apartment.
Violence in the West Bank had flared even before the war in the Gaza Strip between Hamas militants and Israel erupted on October 7.
Since the war broke out, at least 420 Palestinians have been killed in the West Bank by Israeli troops and settlers, according to the Palestinian health ministry based in Ramallah.
The latest fatality was 16-year-old Mustafa Abu Shalbak, who the ministry said was shot before dawn on Monday by Israeli forces near Ramallah.
Residents said Israeli forces came under fire as they raided a home in Amari refugee camp.
An AFP photographer saw troops marching two blindfolded Palestinians through a street, while multiple soldiers pointed their weapons at surrounding buildings.
The military said it carried out a "counter-terrorism operation" at the camp and apprehended two wanted suspects.
"During the operation, a violent riot developed, in which suspects hurled rocks and Molotov cocktails at Israeli security forces, who responded with live fire. A hit was identified," the military said in a statement.
During the violence an Israeli border police officer was also lightly injured, it added.
In recent months Palestinian militants have also carried out numerous attacks against Israeli troops and civilians in Israel and the West Bank, killing at least 17 people, according to Israeli figures.
Israel has occupied the West Bank -- including east Jerusalem, which it later unilaterally annexed -- since the Arab-Israeli war of 1967.
Israeli settlements which are illegal under international law have ballooned over the decades and are seen as a key barrier to peace with the Palestinians.
