A shootout started in which high-ranking police officers Carlos Julio Rincon Juarez and Jose Antonio Moreno Sanchez were both killed by friendly fire.
The bodies of Yolanda Cevallos Coppel, who had been gagged and bound, and of a man in his mid-30s were found inside the house.
The man, known only as 'El Ivan', was apparently the leader of a kidnapping gang and committed suicide with a shot to the head.
Cevallos Coppel was director of prevention programs at Oceanica, one of Mexico's most respected addiction treatment centres.
Juan Maya, the Mexico City prosecutor in charge of the anti-kidnapping unit, and two police officers were sacked earlier this month for their roles in the failed hostage-rescue operation.