commercial

Floor Area Ratio

A zoning measurement that limits building density by comparing the total floor area of a building to the size of the lot on which it sits. For example, an FAR of 2.0 means the building's total floor area can be twice the lot size.

Example

“The city's floor area ratio of 2.0 meant the developer could build up to 20,000 square feet on their 10,000 square foot lot.”

Memory Tip

It's the ratio of floor space to lot space - think 'how much floor can fit on this plot of ground.'

Why It Matters

FAR directly limits how large a building you can construct or expand, affecting development potential and ultimately the property's value and investment returns.

Common Misconception

Many assume FAR only applies to building height, but it actually regulates total floor space, meaning you could build wider and shorter or taller and narrower within the same ratio.

In Practice

A developer owns a 10,000 square foot lot in an area with a 3.0 FAR, allowing them to build up to 30,000 square feet of total floor space, which they could configure as a 6-story building with 5,000 square feet per floor.

Etymology

Developed by urban planners in the early 1900s, combining 'floor area' with mathematical 'ratio' from Latin meaning 'reckoning.'

Common Misspellings

floor-area ratiofloor area ratiosfloor-to-area ratiofloor space ratio

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