What density, height, and FAR (floor area ratio) limits impact overall site yield?

Hello LandBank

Density, height, and Floor Area Ratio (FAR) are core zoning and planning controls that directly determine how much development can occur on a given site. These three parameters collectively shape the scale, layout, and profitability of any project, especially for commercial and mixed-use developments. Understanding how they apply in a specific zoning district is crucial for calculating potential yield, construction feasibility, and return on investment.

1. Density Regulations and Unit Limits

  • Density refers to the number of dwelling units allowed per acre or parcel.
  • Residential density is typically expressed as units per acre (e.g., 20 units/acre).
  • In mixed-use or commercial zones, density may be indirectly regulated through FAR rather than unit count.
  • Some jurisdictions apply minimum or maximum density limits to promote urban form or avoid overcrowding.
  • Density caps influence how many leasable units or rentable spaces you can include in a development.

2. Building Height Restrictions

  • Height limits control the vertical scale of a development, measured in feet or number of stories.
  • Local codes set maximum building heights to preserve view corridors, manage sunlight, or align with neighborhood character.
  • Height may be relaxed in designated zones (e.g., TOD or urban centers) or through bonuses.
  • Rooftop equipment, parapets, and mechanical structures may be excluded from height calculations depending on local rules.
  • Taller buildings often face additional requirements for fire safety, elevator service, and structural design.

3. Floor Area Ratio (FAR) as Development Multiplier

  • FAR defines the total buildable floor area relative to the size of the land parcel.
  • An FAR of 2.0 on a 10,000 sq ft lot permits up to 20,000 sq ft of total floor area.
  • FAR combines with height and coverage limits to define the 3D envelope of a building.
  • It may vary based on use type—commercial, residential, or mixed—and sometimes offers bonuses for affordable housing or green building.
  • Higher FAR values enable denser, more profitable developments but may trigger infrastructure or parking requirements.

4. Combined Effect on Site Yield

  • Site yield is a function of all three parameters: units (from density), buildable space (from FAR), and form (from height).
  • A site with high FAR but low height limits may require broader, low-rise designs.
  • Maximum yield is also constrained by setbacks, open space requirements, and lot coverage rules.
  • Developers must model various combinations to optimize the layout within zoning limits.
  • Efficient yield analysis helps determine feasibility, costs, and profit potential early in the project.

5. Role of Zoning Incentives and Modifications

  • Many cities offer zoning incentives to increase FAR or height in exchange for public benefits like affordable housing.
  • Variances or special permits may be granted to exceed base limits under certain conditions.
  • Overlay zones and special districts can override or supplement base zoning metrics.
  • Engaging local planning departments can reveal if additional density is achievable.
  • Yield maximization strategies often depend on assembling adjacent parcels or securing entitlements.

Join The Discussion

Compare listings

Compare