Floor Area Ratio - FAR

Definition of 'Floor Area Ratio - FAR'


Investopedia explains 'Floor Area Ratio - FAR'

Buildings of varying numbers of stories can have the same FAR, because the FAR counts the total floor area of a building, not just the building's footprint. On a 4,000 square-foot lot, a 1,000 square-foot, one-story building would have the same FAR (0.25) as a two-story building where each floor was 500 square feet.

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