create table #test (
	market_name varchar(6),
	market_project varchar(25),
	ovp_amt decimal(10,2),
	dashboard_status_level int,
	project_level int
)

insert into #test
values
('AUSTIN', 'AUSTIN-T6-2011-03157', 125.00, 3, null),
('AUSTIN', 'AUSTIN-T6-2011-03157', 137.00, 2, null),
('AUSTIN', 'AUSTIN-T6-2011-03157', 52.27, 2, null),
('AUSTIN', 'AUSTIN-T6-2011-03157', 1.24, 1, null),
('DALLAS', 'DALLAS-L6-2012-1122', 77.34, 1, null),
('DALLAS', 'DALLAS-L6-2012-1122', 1122.25, 2, null)

;with maxStatLevel as (
	select market_project, max(dashboard_status_level) max_level
	from #test
	group by market_project
	)
update t
set project_level = m.max_level
--select t.market_name, t.market_project, t.ovp_amt, t.dashboard_status_level, m.max_level
from #test t
	inner join maxStatLevel m on t.market_project = m.market_project

select * from #test

drop table #test

select market_project, max(dashboard_status_level) max_level
into #mytempTable
	from mainTable
	group by market_project
/* this creates a temporary table to reference in your SSMS windows*/

update m
set project_level = t.max_level
from mainTable as m 	inner join #mytemptable as t on t.market_project = m.market_project

drop table #myTempTable