FAR (Floor Area Ratio)

Category: business

The relationship between the total usable floor area of a building and the total area of the lot on which it stands.

FAR is the "density limit." If a 10,000 sq ft lot has a FAR of 2.0, you can build a 20,000 sq ft building (like a 4-story building covering half the lot, or a 2-story building covering the whole lot). It is the primary tool cities use to control skyline density.

Common Examples

• The acquisition was highly profitable because the lot had an unused Floor Area Ratio, allowing the developer to add three more stories.
• Urban planners use strict Floor Area Ratio limits to prevent developers from overwhelming the local transit and utility infrastructure.