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PROBLEM TO BE SOLVED : To produce an iron and rare earth based permanent magnet alloy which can relatively inexpensively be produced, and has excellent magnetic properties. SOLUTION : In the iron and rare earth based permanent magnet alloy, the compositional formula is expressed by (Fe1-k Tk )100-x-y-z Qx (Nd1-m R1m )y Mz (wherein, T is one or two kinds of elements selected from the groups consisting of Co and Ni; Q is one or two kinds of elements selected from the groups consisting of B and C; R1 is one or more kinds of elements selected from the groups consisting of Y, Ce and La; and M is one or more kinds of elements selected from the groups consisting of Al, Si, Ti, V, Cr, Mn, Cu, Zn, Ga, Zr, Nb, Mo, Ag, Hf, Ta, W, Pt, Au and Pb); and, (x), (y), (z), (k) and (m) respectively satisfy 10
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