A protest took place last night outside apartments in Castlerea amid speculation they will house asylum-seekers or refugees.
Local councillor Paschal Fitzmaurice says it is thought the accommodation may house 52 people in 13 apartments.
The Fianna Fáil politician says this would be unacceptable.
He says Castlerea is not the right place for this style of accommodation due to a housing shortage and it being a small town with limited services.
The Department of Integration has not yet responded to queries from politicians and media about the speculation.
Local Sinn Fein TD Claire Kerrane says she will share information on the issue when she has it.