Former chapel will be turned into a nine-person HMO
Plans for the building on Wellingborough Road in Rushden, Northamptonshire, were approved by a planning committee on Wednesday.
The site, most recently used as a two-bed home, had been vacant for several years.
Objecting to the proposals, North Northamptonshire councillor Ash Hall said residents were concerned a HMO would only worsen "existing parking conflict" in the area.
Applicant Investment Street was granted permission to change the property after the planning committee voted to approve the plans 11 to one, subject to conditions.
Oliver McLoughlin, managing director of Investment Street, told the committee: "We won't have any sort of bad people in and we won't give it to a third party.
"There's a huge increasing need for affordable and flexible housing options in towns like Rushden. This type of high-quality HMO gives them the chance to live in comfort without overstretching themselves financially."
Members also backed plans to reduce the width of a dropped kerb at the front of the property to stop cars from parking on the land at the front.
At the planning meeting, neighbour Peter Brady said the proposals to let nine rooms in the property would be an overdevelopment and put a "significant strain" on the quality of life of existing residents.
Hall added: "This application is not about housing need, it is an attempt to squeeze a maximum number of rent-paying tenants into a small space with minimum consideration for safety, infrastructure or neighbour amenity."
The NNC Highways Authority stated the HMO scheme had been proposed as a "car-free development".
It added that there would be sufficient capacity on the surrounding streets for any extra cars, according to parking surveys.
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