Police suspect Rodrick Dantzler shot dead five adults and two children at two different locations in northeast Grand Rapids, Michigan, setting off a manhunt with helicopters.
One of the victims was 10 years old, police said, adding that Dantzler had a personal connection to the two houses where he carried out the killings.
Officers believe one of the victims was his daughter and one was an ex-girlfriend, Police Chief Kevin Belk said.
Dantzler then drove the wrong way on Interstate 96, crashed into a ditch and fled on foot into a neighbourhood.
He forced his way into a house and took three hostages, who were believed to be strangers, Mr Belk said.
Shots were fired as he entered the house, but the occupants were not injured.
The suspect had said he wanted to give himself up, but while he was talking with negotiators about how he could surrender, "we heard a gunshot and it turned out to be a self-inflicted gunshot wound to the head," Mr Belk said.
"The hostages are outside. They are safe. The suspect is dead at the scene."
In addition to those killed, two other people were injured, including a woman apparently caught in a crossfire and another person he hit with his car.
Neither of them suffered from life-threatening injuries.
Family members said Dantzler had been released recently from prison, was very distraught, and may have been bipolar and off his medication, according to reports.
He is said to have served time for assault, as well as being sentenced for malicious destruction of property, and for breaking and entering as a young offender.
Source: Sky news
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