Overview
Floor Area Ratio (FAR) is a zoning concept that controls the density of development on a lot. It is the ratio of total building floor area to the total lot area. FAR is the single most important factor in determining how much can be built on any NYC property.
How FAR Is Calculated
FAR = Total Building Floor Area / Lot Area. For example, on a 10,000 square foot lot with a FAR of 2.0, you can build up to 20,000 square feet of floor area. This could be a 2-story building covering the entire lot, a 4-story building covering half the lot, or any combination that totals 20,000 square feet.
What Counts as Floor Area
Not all space counts toward FAR. The NYC Zoning Resolution defines "zoning floor area" specifically. Generally included: habitable space, commercial space, and enclosed parking above grade. Generally excluded: cellars (if less than half above grade), mechanical space (with limitations), open balconies, and terraces. The details are complex and vary by district.
FAR by Zoning District
Each zoning district has a specified FAR. Low-density residential districts like R1 or R2 have FARs of 0.5 or less. High-density commercial districts like C6-6 can have FARs of 10.0 or higher. Mixed-use districts may have different FARs for residential and commercial uses.
Unused FAR (Air Rights)
When a building does not use its full allowed FAR, the unused FAR is commonly called "air rights." These rights can sometimes be transferred to adjacent lots through a zoning lot merger. Unused FAR has significant value, especially in high-density districts. For example, a 2-story building on a lot zoned for FAR 10.0 has substantial unused development rights.
Bonus FAR
Certain programs provide additional FAR beyond the base allowed by zoning. The Inclusionary Housing program offers bonus FAR for projects that include affordable housing units. Other bonuses may be available for public plazas, FRESH food stores, and other public benefits.
Frequently asked
What does FAR mean in NYC real estate?
FAR (Floor Area Ratio) is the ratio of total building floor area to lot area. It determines how much you can build on a lot. A FAR of 2.0 on a 10,000 sq ft lot allows 20,000 sq ft of floor area.
Can I buy more FAR for my property?
You may be able to acquire additional FAR through zoning lot mergers with adjacent properties (transferring their unused FAR to your lot) or through inclusionary housing bonuses. The feasibility depends on your zoning district and site conditions.
What is unused FAR or air rights?
Unused FAR refers to the development potential of a lot that has not been built. If a lot allows FAR 6.0 but only 2.0 is built, there are 4.0 FAR of unused development rights, commonly called air rights.
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