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Rezoning Density Bonus Value Calculator

Density bonuses via rezoning create additional buildable area worth millions.

$
$

Net bonus value

$6,700,000

Additional sqft

30,000

Gross bonus value

$7,500,000

How the math works

Additional = parcel × (new − current FAR). Gross = additional × value. Net = gross − cost.

20k × 1.5 = 30k add'l × $250 = $7.5M gross − $800k = $6.7M net.

How to Use

  1. Enter parcel size sqft.
  2. Enter current FAR.
  3. Enter proposed FAR.
  4. Enter value per sqft buildable.
  5. Enter entitlement cost.
  6. Read bonus value.

Frequently Asked Questions

Density bonus programs?

Inclusionary zoning (IZ): build affordable units, earn density bonus. 10-30% bonus typical for 10-20% affordable. Transit-oriented development (TOD): density bonus near transit. Green building certification (LEED): 5-15% density bonus in some cities. Open space dedication: density bonus for public park contribution. Historic preservation TDR: buy air rights from preserved structure.

FAR increase value?

Manhattan: unused FAR worth $300-1,000/sqft. SF: $150-500/sqft. Chicago: $50-200/sqft. DC: $75-250/sqft. Miami/Dallas: $30-100/sqft. Value = market rate rent × NOI conversion × cap rate calculation. Rule of thumb: 15-30% of stabilized property value is attributable to density. Density bonus 20% = 20% more asset value.

Bonus trade-offs?

(1) Affordable housing set-aside: 10-25% of units below market. Rent 40-80% market. Impact: reduces gross rent but bonus offsets. Net neutral to positive typically. (2) Public amenity contribution: plaza, public art, community room. Capex $1-5M. (3) Infrastructure: additional sewer, traffic, utility upgrades $2-25M. (4) Design constraints: quality standards increased. All these reduce bonus net value.

Approval process?

Pre-app meeting with planning staff: 1-2 months. Formal application + public hearings: 6-18 months. Environmental review: 6-24 months parallel. Planning commission + city council: 3-6 months final. Appeals: 3-12 months extended. Total: 18-48 months from initial concept to entitled. Significant projects: dedicated entitlement team + political strategy required.

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