The Dartmoor National Park Authority has given unanimous approval to a scheme for 16 affordable homes on the edge of Ashburton.
The homes will be built off Roborough Lane for LiveWest, the south west's largest housing association and social landlord.
National Park Authority member Sally Morgan told the planning committee: "We have almost found our perfect application as far as renewables and affordable housing are concerned."
The homes will go to applicants with strong local connections. They will feature a mix of one, two and three-bedroom options, and solar panels could be offered as part of the design.
The site is part of a larger area already earmarked for 40 homes. LiveWest says there is a high need for low-cost home ownership options in Ashburton for households that do not qualify for rented affordable homes yet cannot afford high private rents.
Planning agent Alex Graves, speaking in support of the scheme, said LiveWest was a charitable organisation which manages more than 120,000 homes.
"They believe everyone has a right to a clean, affordable, comfortable and safe place to call home," he said.
"Dartmoor is experiencing an unprecedented housing crisis in which demand is outstripping supply. There are 56 households in need in Ashburton alone.
"This is a worthy scheme that seeks to provide affordable homes to meet proven need."
Officers said the plan provided social and economic benefits through the construction phase as well as meeting a need for local affordable housing. They recommended it for approval subject to a number of conditions.
Mrs Morgan added: "It is really refreshing because it goes over and above our policy on affordable homes."
To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your Devon community, visit the Public Notices Portal.
Devon Affordable Homes Plan Gets Unanimous Go-Ahead