The Civil Aviation Authority said the passengers included two infants and three children under the age of 12, the official Islamic Republic News Agency (IRNA) reported.
The plane crashed into the Azad residential block on Mina 6 Boulevard, IRNA reported. State television reported at least three people in the area were taken to hospital with burns.
IRNA reported that an engine shutdown caused the crash.
Mehrabad is located in a western suburb of Tehran and mainly functions as a domestic airport, although it also serves some international routes.