Commercial & AppraisalAdvanced
What Is Floor Area Ratio?
Also written as: FAR
Floor area ratio is a zoning limit expressing how much total building floor space is allowed relative to the size of the lot it sits on.
Most useful for: Commercial Investor · Developer
Formula
FAR = Total Building Floor Area ÷ Lot AreaExample
A 10,000 sq ft lot with a 2.0 FAR limit allows up to 20,000 sq ft of total building floor area, regardless of how many stories that takes.
Related Terms
More Commercial & Appraisal Terms
Share:
Was this explanation helpful?
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
Understand a property's costs and risks before you make an offer
Use the free calculator for your own numbers, or analyze a specific home before you commit.
Or analyze a specific property: Essential Property Analysis, $19 · Property Decision Analysis, $49 · Professional Property Analysis, $99. You choose the depth before you pay.