Floor Area Ratio (FAR) is a mathematical formula that determines how many square feet can be developed on a property in proportion to the lot area. The property area is multiplied by the FAR factor; with the result being the maximum floor area allowed for a building on the lot. Local Zoning Codes will assign a designated FAR based on the zoning district and building use. The size of the building will be directly influenced by the FAR assigned to the specific lot. The larger the FAR, the larger the building can be. Understanding Floor Area Ratio is a basic requirement for real estate development.