Lot coverage is the maximum percentage of a lot's total area that a building's footprint can occupy at ground level. It's set by the Zoning Resolution and varies by district and building type.

In NYC, these limits have a real impact on what can actually be built. In an R6A district, residential buildings are generally capped at 60%, meaning a 5,000 SF lot can have no more than 3,000 SF of footprint. These limits are enforced by the NYC Department of Buildings at permitting and apply independently of FAR.

A lot of owners assume that having unused FAR means they can automatically build more, but lot coverage can be the binding constraint even when FAR headroom remains, especially on smaller lots. When a developer can't cover more ground, they have to build taller to reach the same total square footage, which directly affects construction costs and feasibility.

FAR tells you how much total space you can build. Lot coverage decides how wide your building can be. When it can't get any wider, it has to get taller.

Example: You own a 5,000 SF lot in an R7A district. Your FAR is 4.0, allowing up to 20,000 total buildable SF. But your lot coverage cap is 60%, limiting your footprint to 3,000 SF. To reach all 20,000 buildable SF with only 3,000 SF of footprint, a developer has to stack roughly seven floors.