What is the Floor Area Ratio formula? Floor area ratio (FAR), the ratio of a building's total floor area to the size of the piece of land built upon it is formulated as: FAR = gross floor area divided by the area of the plot. 5.What are the drawbacks of the Floor Area Ratio? The problem with FAR is that it works both ways; in some cases, a high floor area ratio may make a property more valuable but in some cases, it can also decrease the property value. For example, if an apartment complex is constructed in a way that it can house people in spacious homes, the property value can increase. On the other hand, there could be another developer that can build more houses in the same size of land in an adjoining area, thereby decreasing the value of the property.
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