Benzino was riding in the procession in Plymouth, Massachusetts when he was allegedly shot in the arm by his 36-year-old nephew Gai Scott. The suspect pulled alongside Benzino's car and opened fire.
The 48-year-old, who real name is Raymond Scott, is a cast member of the VH1 reality show "Love and Hip Hop: Atlanta," which is known for its over-the-top drama and fights.
The rapper's co-star Steve J posted a photo on Instagram after visiting Benzino in the hospital. The photo showed his left arm bandaged and in a sling.
Family members say tension between Benzino and his nephew had been growing. Shell casings and projectiles were found at the scene.
Scott was taken into custody and charged with assault with intent to murder.
Benzino is a former co-owner of The Source Magazine. He left the publication in 2006 and later launched Hip-Hop Weekly.
The Associated Press contributed to this report.