FAR is the ratio of a building's total floor area to the size of the lot it sits on. It's calculated by multiplying the lot size by the FAR number assigned to that zoning district.

In NYC, FAR is set by the Zoning Resolution and varies significantly by location. A lot zoned R6A carries a residential FAR of 3.0, R7A allows 4.0, and dense commercial districts such as those found in Midtown can reach as high as 18.0. You can look up any property's zoning district and its associated FAR using the NYC Department of City Planning's ZoLa tool.

FAR ultimately determines how much a developer can build and how much they're willing to pay. A higher FAR means more buildable square footage, which drives up land value. Many owners assume their FAR is fixed, but the City of Yes for Housing Opportunity (December 2024) increased allowable FAR for certain properties zoned R6 through R12, meaning some owners may have significantly more buildable potential today than they did just a year ago.

Example: A 10,000 SF lot with a 5.0 FAR allows for 50,000 SF of buildable floor area (before any bonuses are applied).