What does FAR stand for in relation to property assessment?

FAR stands for Floor Area Ratio, which is a crucial concept in property assessment and urban planning. It represents the relationship between the total floor area of a building and the size of the land parcel on which it is built. This ratio is obtained by dividing the total building area by the total lot size, allowing assessors and planners to determine how densely a property can be developed.

In the context of property assessment, understanding FAR is essential, as it helps in evaluating land use and zoning regulations. Higher FAR values can indicate more intensive development, while lower values suggest a more open, less dense construction. This metric also impacts property valuation, as changes in FAR can affect the potential income-generating capacity of a property.

Other options listed, such as Fixed Asset Ratio and Financial Assessment Report, do not relate specifically to building density or land use assessment in the same way as Floor Area Ratio does. The option for Floor Allocation Rate is not a recognized term in property assessment contexts, which reinforces that FAR is indeed the correct term relevant to this subject matter.