Urban density policy, usually implemented through a floor area ratio (FAR) plan, may become increasingly important in achieving such goals as environmental sustainability or acting as an incentive to promote transit-orientated development. Nonetheless there seems a lack of guidance on FAR distribution. In order to provide FAR distribution guidelines, in particular with the goal of incorporating sustainability and market demand, this paper develops a step-by-step, quantitative residential FAR distribution alternative based on both the advantages of the location and the market demand for the locations. It consists of two major steps: floor area generation and FAR distribution; the latter being the focus of this paper. The methods applied involve the measurement of accessibility within geographic information systems and the hedonic price model. A simulation analysis of this FAR distribution method is conducted to develop a FAR plan for a plan area, and is then applied to demonstrate how the FAR plan can be modified if mass rapid transit stations are introduced.