Officers spotted a blue BMW car acting "suspiciously" on Matlock Drive on Monday at around 1.15pm.
Further suspicious activity was spotted at the back of the property involving the people in the car, police say.
A Burntwood man, aged 52, was detained nearby and was found to be in possession of heroin and crack cocaine. He has since been issued with a conditional caution.
Cash, phones, drugs, bladed articles and 24 cannabis plants were found and seized when officers raided the property.
Three men, aged 45, 47 and 52, all from Cannock, were arrested on suspicion of possession with intent to supply Class A drugs and being concerned in the supply of Class A drugs.
All three have since been released under investigation as enquiries continue.