The 32 homes will be built in Brecon on land the council owns north of Heol Y Ffynnon.
They could be the first council homes built by the council in 40 years. They would have been the second lot of council owned homes to be built but the first project, in Newtown, to build a block of flats has been delayed after the appointed building firm went bust.
Approval for the Brecon scheme was given by the Brecon Beacons National Park Authority’s planning committee.
Councillor James Evans, the council’s cabinet member for housing, said: "I’m delighted that the Brecon Beacons National Park unanimously approved and were complimentary about these exciting housing plans for Brecon.
“This piece of land has been in our ownership for some time and now we can progress with building 32 social homes at this site.
“We want to produce good quality, sustainable and affordable homes that meet the needs of local communities across Powys and we have made a commitment to developing 250 additional homes over the next five years.”
The development will see a mix of property types including two-bedroom, three-bedroom and four-bedroom properties as well as a building containing 12 one-bedroomed flats.
In appearance, the buildings will use a mix of red facing brick and Sweet Chestnut cladding. The properties will be for social housing and will be designed to meet the Welsh Government’s Development Quality requirements.
Public open space is proposed as part of the development, which will also include 58 parking spaces. Active travel routes into the centre of Brecon will also be improved and upgraded.
The new homes will be managed by the council and allocated to tenants on the Common Housing Register.