Officials predicted the 3,500-acre fire caused damage to at least 50 houses, Jim Stables, assistant chief of the Palm Bay Fire Department, told CNN.

Authorities are offering $10,000 to anyone who gives police information ending in the conviction of a possible arsonist.

"We're in a really bad situation right now with the drought index. We have no rain, and in turn, this wind has caused us a great deal of issue with that as well," Stables said.

Florida Gov. Charlie Crist announced a state of emergency and called in the National Guard for assistance Monday as fires continued to burn.

All Palm Bay schools remained closed Tuesday as a result of the blaze, the Brevard County Public Schools' Web site said.

"We're handling it on a case-to-case basis depending on the conditions of the homes and things like that," Stables said to CNN.