FAR Bonus Economic Value Calculator

FAR bonuses add buildable area. This calculator sizes.

Base FAR

Bonus FAR

Site SF

Rent per SF

Cap rate %

Bonus value

$22,909,091

Bonus SF

37,500

Bonus NOI

$1,260,000

How the math works

Bonus SF = site × bonus FAR. Net = bonus × efficiency (80%). NOI = net × rent. Value = NOI / cap.

25,000 SF × 1.5 FAR = 37,500 SF bonus × 80% = 30,000 SF net. 30k × $42 = $1.26M NOI. At 5.5% cap: $22.9M bonus value. Material — worth meeting bonus program requirements.

How to Use

Enter base FAR.
Enter bonus FAR.
Enter site SF.
Enter rent per SF.
Enter cap rate %.
Read bonus NOI and value.

Frequently Asked Questions

FAR basics?

Floor Area Ratio: buildable area / lot area. E.g., FAR 3.0 on 10,000 SF lot = 30,000 SF buildable. Higher FAR = more density permissible. FAR bonuses reward specific amenities or contributions (public plaza, affordable housing, historic preservation).

Bonus sources?

Affordable housing set-aside: +0.5-1.5 FAR typical. Public plaza/atrium: +0.5-1.0. Historic preservation: +0.5-1.0. Transit-oriented: +0.5-1.5. Green building: +0.25-0.75. Stackable in some jurisdictions.

Economic value?

Each FAR point on 10,000 SF site = 10,000 buildable SF. At $40/SF rent, 6% cap rate, 80% efficiency: $5.3M value per FAR point. Material economics — worth complying with bonus programs when feasible.