The application has been made by Mid Wales Housing Association to build the homes off Forden Road.
Earlier this year, Montgomery county councillor Stephen Hayes called in the application to be discussed by the committee.
Councillor Hayes pointed out that the land was an “exception site” which means that it is outside the town’s development boundary, and only affordable homes would be allowed on the site.
He said: “I welcome proposals to provide affordable dwellings in Montgomery.
“I note that this proposal relates to an exception site, and that land with a housing allocation in the current Local Development Plan is situated nearby, and lies undeveloped.
“I also note that this site was previously designated as an employment site.
“For both these reasons, I would prefer to see this proposal brought forward on to the allocated housing site.”
He also pointed out that the junction of New Road and Forden Road next to the site is dangerous with poor visibility.
Montgomery Town Council is also broadly supportive but has serious concerns about the proposed access onto Forden Road.
It saus significant safety improvements would be needed due to the increased volume of traffic and pedestrian use.
Powys council planning officer, Richard Edwards said: “It is considered the proposed application provides a high-quality development on an exception site location compliant with planning policy and providing 100 per cent affordable housing that responds to local need.
“The recommendation is therefore one of conditional consent inlcuding a link road.