The company has applied for outline planning permission on a 24-acre site near its Trostre plant in Llanelli, Carmarthenshire.
According to a BBC report, Tata Steel does not intend to build the houses themselves but are considering selling off the land. It is expected the land's value would be worth more with approval for outline planning.
Carmarthenshire Council received the application on January 18 and has since received a number of objections to the proposal from local residents as well as Llanelli Rural Council due to "concerns over existing sewer capacity not being able to cope with additional demand".
A Tata Steel spokesperson said: "It would be wrong for us to comment on this matter while it is still the subject of consideration by the planning committee."
Documents show that Manchester-based firm Turley is the agent for Tata Steel in the application.