Paul Farquhar
Legend
I don't know anything specific, but it sounds like the sort of scenario you would see in White Dwarf in the 1980s.
You should update the OP. Some people will not read more of the post and thus will miss this important infoI got more information! It was 2nd Edition and definitely in Dungeon magazine between the late 80s and early 90s.
It's really hard to say. But there's aDungeon #88Dungeon #14 (corrected by coyote6) (1988) adventure called The Wererats of Relfren that kinda has this premise iirc. I don't think it's the whole town, and it's specifically wererats.
I agree with @Quickleaf , Wererats of Relfren sounds close. Here a link to the PDF: Dungeon #18I got more information! It was 2nd Edition and definitely in Dungeon magazine between the late 80s and early 90s.