Fusō

Nagato's parents raised their son in a small village near Amegakure.

Background
During the Second Great Shinobi World War, Nagato and his parents were hiding in their battle-damaged house when Konoha ninja broke in looking for food. Nagato and his parents tried to sneak away but when they were detected, his mother and father fought the ninja to give Nagato a chance to escape. However, they were quickly killed.

When Nagato's parents attacked, the Konoha ninja assumed they were enemy ninja. They tried apologizing to Nagato when they realized their mistake but Nagato, upon awakening his Rinnegan, quickly killed them to avenge his parents. Nagato buried his parents before leaving to search for food.

Nagato considers the death of his parents to be the first great tragedy of his life and evidence that the peace Konoha preaches comes at the cost of others' lives. Because of these notions, Nagato would later co-create Akatsuki.

Trivia

 * Based on Madara Uchiha's words, at least one of them is descended from the Uzumaki clan. A common trait of the clan is red hair. While it is unknown which of Nagato's parents has red hair in the manga, in the anime, Nagato's mother has red hair.