Officers were called to a property in Holly View, Triangle, at around 11pm on Sunday following a concern for safety.
Officers found the body of a man in his 60s.
A post mortem examination has been carried out and the death is being treated as suspicious at this time.
A 28-year-old man was arrested on suspicion of murder and remains in custody.
Officers were still at the scene this morning.
Andrew Pugh, 37, who lived next door to the victim, but did not know him, said: “You just don’t expect it right on your doorstep. It’s not something I have experienced before and it’s very sad.”
Another neighbour, Gemma Taylor, 40, said: “I didn’t know the man. It’s awful - I was really upset about it. It’s a bit close to home.
“It’s quite quiet and everybody keeps themselves to themselves. I just couldn’t believe it, police were parked right outside all night.”
One woman, who asked not to be named, said she was shocked, as it’s the second incident in and around Halifax in less than a week.
An unconnected murder investigation was launched when the body of Darren Moorhouse was found in Ovenden last Wednesday.
She said: “People come and go quite a lot, the majority are rented so it’s very rare to see people there for more than 12 months.
“We didn’t know what had happened yesterday morning and it was a shock to see all the police vehicles.”
Anyone who has any information is asked to contact police via 101 quoting 1394 of January 22. Information can also be passed anonymously to Crimestoppers on 0800 555 111.