The Floor Area Ratio (FAR) is the ratio of the total area of the building, compared to the size of the given land i.e. it controls the size of construction and its activity in all districts. The FAR is also essential in creating an understanding of the size of a building. In other words, it identifies the maximum floor area that can be built in a given lot. (NYC City Planning)

As the population and the number of construction of buildings vary from district to district, every district has a different FAR. The government can regulate and put restrictions on FARs when necessary. (Hargrave, 2019)

Calculations of FAR can be done by dividing the gross floor area by the total buildable land. For instance, if the FAR is 3 for a 20,000 square foot area, 60,000 square feet of building would be allowed, and if the FAR is 3 for a 40,000 square foot area, 120,000 square feet of the building is permitted.