The use of sodium montmorillonite clay as a stabilizer in the surfactant-free emulsion polymerization of n-butyl acrylate/styrene (n-BA/S) was assessed. It was shown that the use of the clay alone did not yield the desired armored latex particles. A functional comonomer, that is, a phosphate ester of poly(ethylene glycol) monomethacrylate, was used to improve the interaction between the polymer and clay, thus allowing for the clay platelets to adhere to the surface of the polymer particles. The morphology of the films obtained for these two different scenarios was similar and resembled a honeycomb structure. However, their water-resistance properties differed drastically. The water absorption and water vapor permeation rate were much lower in the hybrid n-BA/S/clay films in the presence of the functional monomer than in the films obtained without the functional monomer.