National Real Estate Exam (PSI)Land Use Controls and RegulationsHard

A city's zoning ordinance sets a maximum Floor Area Ratio (FAR) of 1.5 for a commercial lot that is 8,000 square feet. A developer proposes a 4-story building with a footprint of 4,000 square feet on each floor. Does the proposed building comply with the FAR limit, and by how much does it exceed or fall under the maximum?

  1. ANot compliant; the building exceeds the maximum by 8,000 square feet
  2. BCompliant; the building is exactly at the 12,000-square-foot maximum
  3. CNot compliant; the building exceeds the maximum by 4,000 square feet
  4. DCompliant; the building is 4,000 square feet under the maximum
Show answer & explanation

Correct answer: C. Not compliant; the building exceeds the maximum by 4,000 square feet

FAR maximum floor area = lot area × FAR = 8,000 × 1.5 = 12,000 square feet. The proposed building's total floor area = 4,000 sq ft footprint × 4 stories = 16,000 square feet. Since 16,000 − 12,000 = 4,000, the building exceeds the maximum allowed floor area by 4,000 square feet.

Why the other options are wrong

  • A. This miscalculates the excess; the correct overage is 4,000 sq ft, not 8,000.
  • B. 12,000 is the maximum allowed, but the proposed building totals 16,000 square feet, not exactly at the limit.
  • D. This reverses the math; the building actually exceeds, not falls under, the maximum.

Floor Area Ratio (FAR)

A zoning tool comparing total building floor area to lot size (FAR = total floor area ÷ lot area), used to limit building bulk and density.

  • Maximum floor area = lot area × FAR
  • Total floor area sums all stories' floor space
  • Exceeding the FAR maximum requires a variance or redesign

Memory trick: FAR = Floor Area ÷ lot Area—multiply to find your max.

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