On September 27, 1998, at 1205 central daylight time, a Piper PA-28-140, N7353J, was substantially damaged during takeoff. The 14 CFR Part 91 flight was departing Iowa City, Iowa, en route to Maquoketa, Iowa. The pilot reported a loss of power during takeoff. The airplane descended into trees and impacted the ground. The private pilot and passenger received minor injuries. Visual meteorological conditions prevailed and no flight plan had been filed. The pilot reported he had conducted his normal preflight and run-up checks. He departed runway 30. He reported that immediately after liftoff, the engine "seemed to lose a lot of its power." He reported that he applied carburetor heat and cycled the throttle to full power, but the engine did not regain power. He reported the residential area offered no open area to do an emergency landing, so he flew the airplane to a small opening between two houses. The airplane fuselage went between two apple trees. The wings were separated from the fuselage by the impact with the apple trees. An Airworthiness Inspector from the Federal Aviation Administration inspected the airplane. The propeller exhibited minimal damage and chordwise scratching on one blade. The engine exhibited continuity to the accessory gearbox. The valve train operated normally and there was thumb compression on all cylinders. The carburetor evidenced no anomalies. The fuel from the wing tanks could not be examined for contamination since the fuel had spilled out of the tanks when wings separated from the fuselage. The inspector reported that no cause of the power loss could be found. The engine run was conducted with the engine still on the airframe. The mechanic who performed the engine run reported the engine made full power at 2,450 RPM. He reported, "... the engine accelerated good. Both magnetos checked OK. Carburetor heat checked OK. I ran the engine with fuel selector on LH tank and that checked OK. I checked fuel selector on RH with air pressure and that checked OK." The pilot reported that he switched the fuel selector to the fullest tank after he accomplished the engine run up prior to takeoff.