Taiwan government has considered to implement floor area ratio (FAR) control everywhere in Taiwan since 1991 in order to improve the residential quality. Due to various impediments, today FAR control is a mandatory requirement only in 75% of city plan area. The major side effect is that construction companies rush to build housing facilities before the imposition of FAR control. This leads to a serious supply surplus in the housing markets. The main purpose of this study is to explore theoretically the effects on the land rent and realized floor area ratio due to the influence of partial implementation of FAR control in a metropolis.