The plans were supported by the Newmarket Trainers Group and The Jockey Club Estates.
The Newmarket Trainers Group said there was an “acute need” for safe housing for young apprentices who could be “vulnerable” due to living away from home for the first time.
The planning documents said, external: “With over 6,500 people employed within the horse racing industry in Newmarket, housing shortages and rising living costs present significant challenges, particularly for young apprentices.
“The Newmarket Housing Trust has identified the need for affordable, well-located accommodation as an urgent priority, particularly for young people entering the workforce,” it said.
The Jockey Club Estates added that affordable housing for the racing industry workforce was “essential if Newmarket is to retain its position as a global centre for racing excellence.”
Plans for the new site were approved by the council, subject to a series of conditions, including that development of the new student accommodation had to begin within three years.