The applicant Neil Davies of Hutte Hause ltd can now go ahead and build two, three-bedroom houses at land off Post Office Lane in Carno, which is the garden of a property called Tŷ Mawr.
The plans show that parking will be provided at both plots for three cars each.
Previous plans for a bigger development of up to four houses on the site, lodged last year, was withdrawn due to part of the site being in a flood zone.
Powys County Council planning officer Rhian Griffiths said: “Carno is identified as a large village under the Powys Local Development Plan (LDP).
“The site falls within the defined boundary of Carno, and whilst it is not an allocated site, it is considered to be a suitable site for housing.”
But concerns about the scheme were raised by statutory consultees, Welsh Government environment body Natural Resources Wales (NRW), as part of the development is in a flood zone.
In her report Ms Griffiths explains that the houses would have a “raised finish floor level” which offers protection against the risk of ordinary river flooding.
But the car parking provision is in a “Flood Zone Three” area which means that there is a chance it would be flooded in a “climate change event.”
Ms Griffiths said: “Whilst NRW cannot comment on precise flood depths without hydraulic modelling, they have confirmed that they consider it likely to be within tolerable limits.
“Overall, NRW have confirmed that they do not have any objection to the development.”
But NRW want a condition placed on the planning permission that prohibits any future building work taking place in the area which is in Flood Zone Three unless further approved by the planning authority.
Ms Griffiths said: “It is therefore considered that the proposed development fundamentally complies with relevant planning policy and the recommendation is therefore one of conditional consent.”