Floor Area Ratio (FAR) is a key metric in real estate development that determines how much buildable space is allowed on a given parcel of land. It is an essential zoning tool used by municipalities to regulate density and ensure balanced urban growth.
Understanding FAR
FAR is calculated by dividing the total floor area of a building by the total area of the lot on which it is built. The formula is:
FAR = Total Building Floor Area ÷ Lot Area
For example, if a lot is 10,000 sq. ft. and the allowed FAR is 2.0, a developer can build up to 20,000 sq. ft. of total floor area. This space can be spread across multiple floors, allowing for flexibility in design.
Why Does FAR Matter?
FAR plays a crucial role in urban planning by influencing:
- Density: Higher FAR values allow for more units or commercial space, promoting efficient land use.
- Building Height & Massing: While FAR does not directly dictate height, it impacts how a structure is designed within zoning constraints.
- Land Value: Properties with higher permitted FAR often have greater development potential and higher market value.
- Community Character: Municipalities set FAR limits to maintain neighborhood aesthetics and infrastructure capacity.
FAR in Practice
Different zoning districts have different FAR limits based on land use. For example:
- Low-Density Residential (e.g., single-family homes and townhomes) may have an FAR of 0.5 – 1.0.
- Mid-Rise Multifamily (e.g. 4-6 storey buildings) developments often range between 1.5 – 3.0.
- High-Density Urban Areas (like downtown cores) can have FAR values exceeding 5.0.
Developers may seek FAR bonuses or rezoning approvals to increase density through community benefits, such as affordable housing or public amenities.
FAR is a fundamental zoning regulation that shapes cityscapes and affects development feasibility. Understanding it is crucial for developers, investors, and planners navigating land use regulations.