Powder metallurgy is inherently a net shape process and for cost reasons secondary operations should be avoided. However, in practice it is often necessary to perform at least some machining in the soft condition after sintering in order to create the desired geometry of the part. These parts can then be heat treated in order to reach high mechanical properties. Traditional materials for heat treatment often include Copper, Nickel, or Molybdenum in quantities of totally 2-6%. In the light of the recent cost increases for these alloying elements these materials are becoming less competitive compared to solid steel process routes. Recently a new iron powder was introduced that is designed to perform well in heat treatment and having a lean alloy composition. The present work compares the performance of this powder to some powders commonly used in heat treated applications.