The shooting happened at a two-condo complex near Auzerais Avenue and Race Street in San Jose.
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Officers responded to a report of a family disturbance around 8:20 a.m. Police say the caller said her husband was drunk and tried to hit her.
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Gabriel Carreras, 44, was taken into custody four hours after the shooting.
Police said two officers were "ambushed" with a weapon he should not have had.
Police say within 30 seconds, officers tried to announce themselves as SJPD officers; suspect went onto balcony and fired on officers, striking the officer. Her partner extracted her and began to treat her injuries.
Silicon Valley native and state lawmaker Evan Low said the injured officer's partner is his older brother.
"I'm headed down in transit to go see him, personally to give him the biggest hug ever," Low said.
Low said right now is the time to think about the officer who was shot and be reminded that this happens every day.
"Well this is very personal to me and as a family member of someone who serves in our community, and no one ever wants to get that call that something happened when that loved family member is on duty. But a stark reminder that these are public servants in our community whether family members or not this is a family, we are a community and we must not tolerate this," Low said.
After four hours, the suspect, Gabriel Carreras, exited and was taken into custody. A firearm was recovered, police said.
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The suspect is a convicted felon on probation and should not have had the weapon, police said.
In the hour before SJPD announced that a suspect was in custody, a series of flash bangs rang out in the neighborhood and shortly after, officers were seen taking a man from one of the homes.
Though the police perimeter was wide, many were still close enough to be startled by all the activity as that suspect was taken into custody.
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"I heard a big ol' boom and I thought maybe I was like a little tired, because my eyes started watering," said Vito Rosales, "Then the aroma of like ammonia came over and I was like, 'wow.'"
Everett Lyons says he lives next to the home police were responding to.
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"I've never seen anything in this neighborhood anything remotely close to this," He said, "I'm just astounded."
Lyons was not home at the time of the disturbance, he along with many others not home were kept outside the police perimeter for hours like Mary who lives in a neighboring apartment complex. She had left her home moments after the shooting, not realizing what happened.
"I came out to go to the store. When I came back out, I couldn't get through," she said, "Everything was blocked off. I didn't know what was going on."
The road closures also impacted multiple large and small businesses like Ken Gresham's -- which weren't able to accept customers most of the day.
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Not knowing what was going on, Gresham was about to open up his shop up for the day, when police stopped him.
"I walked outside, and they rushed out and said you're not supposed to be here and so get back in your store," he said.
The officer shot is the department's first female officer shot in the line of duty, police chief Anthony Mata said.
Body-worn cameras recorded the incident, police said.
This is the second SJPD officer shot in the line of duty this year.