Infill Feasibility, Terms & Definitions
Plain-language explanations of the zoning, site, and financial terms behind infill feasibility, from setbacks and lot coverage to cap rate, NOI, and the basic pro forma.
Financial Terms
IRR is the average yearly return a project is expected to earn over the whole time you hold it, written as a percentage. A 15% IRR roughly means your money grows about 15% per year on average.
Source: Parsla plain-language explainer
A cap rate is the yearly income a property produces divided by its price, shown as a percentage. It tells you roughly what return the property would give if you bought it with cash.
Source: Parsla plain-language explainer
Cash flow is the money left over each month or year after you collect rent and pay all the bills, including the mortgage. Positive cash flow means money in your pocket; negative means you pay out of pocket.
Source: Parsla plain-language explainer
NOI, or net operating income, is the income a property makes after paying its running costs but before any loan payments or income taxes. It shows how much the property itself earns.
Source: Parsla plain-language explainer
Gross rent is the total rent collected before any costs, and net rent is what remains after the property's expenses are taken out. Net is the more realistic picture of what you keep.
Source: Parsla plain-language explainer
DSCR, or debt service coverage ratio, compares the income a property earns to its loan payments. A DSCR of 1.0 means income exactly covers the loan, and above 1.0 means there is a cushion.
Source: Parsla plain-language explainer
LTV, or loan-to-value, is the size of your loan compared with the value of the property, shown as a percentage. An 80% LTV means you are borrowing 80% and putting in 20% yourself.
Source: Parsla plain-language explainer
Equity is the part of the property you truly own, which is its value minus whatever you still owe on the loan. As you pay down the loan or the value rises, your equity grows.
Source: Parsla plain-language explainer
A pro forma is a projection of how a property is expected to perform financially, listing the income, costs, and returns before anything is actually built or bought. It is essentially an educated forecast.
Source: Parsla plain-language explainer
Hard costs are the physical building expenses like materials, labor, and the structure itself, while soft costs are the non-physical ones like permits, design fees, and legal work. Both are real parts of the budget.
Source: Parsla plain-language explainer
Construction costs are what it takes to actually build the project, mainly the materials and labor for the structure. They are usually the largest single part of a development budget.
Source: Parsla plain-language explainer
A contingency is extra money set aside in the budget for surprises and cost overruns you cannot predict. It is a safety cushion so an unexpected expense does not sink the project.
Source: Parsla plain-language explainer
Vacancy rate is the share of time a rental is expected to sit empty without a paying tenant, shown as a percentage. A 5% vacancy rate assumes the unit is empty about 5% of the year.
Source: Parsla plain-language explainer
Operating expenses are the ongoing costs of running a property, such as property taxes, insurance, maintenance, utilities, and management. They do not include the loan payment.
Source: Parsla plain-language explainer
ROI, or return on investment, is your total gain compared with what you put in, shown as a percentage. It is a simple way to see how much an investment earned overall.
Source: Parsla plain-language explainer
Planning Terms
Infill development means building on empty or underused land that sits within an area that is already developed, rather than on the edge of town. Think of adding homes to a gap between existing houses.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Feasibility is an early check of whether a project realistically makes sense before you commit, looking at whether the rules allow it and whether the numbers work. It answers can this be built and will it pay off.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
A feasibility analysis pulls together the zoning rules, costs, and expected returns to see whether a project is worth pursuing. It is the homework you do before spending serious money.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Zoning is the set of local rules that decide what can be built on a piece of land and how it can be used, like homes, shops, or factories. It is the city's rulebook for each area.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Density refers to how many homes or how much building is packed into a given area of land. Higher density means more units on the same amount of land.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Permitted use is the list of things you are allowed to do on a piece of land under its zoning, such as a single home, apartments, or a shop. If your plan is a permitted use, it fits the rules without special approval.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
A variance is special permission from the city to bend a specific zoning rule, like building slightly closer to the property line than normally allowed. It is an exception, granted case by case.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Rezoning is the formal process of changing the zoning rules that apply to a piece of land, for example from single-home to multi-unit. It usually requires an application and city approval.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
A parcel, also called a lot, is a single defined piece of land with its own boundaries and ownership. It is the basic unit of land that zoning rules apply to.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
Unit mix is the combination of different home sizes or types in a project, such as how many studios, one-bedrooms, and two-bedrooms there are. It describes what you are building, not just how many.
Source: City of Edmonton Zoning Bylaw 20001 (plain-language summary)
The city's rules that determine what you can build on a piece of land — including building size, height, setbacks, and use.
For example: single-family home, duplex, or garden suite.
Source: City of Edmonton Zoning Bylaw 20001
The minimum distance a building must be from the property line or other structures.
A 6m front setback means your building must be at least 6 meters from the front property line.
Source: City of Edmonton Zoning Bylaw 20001
A measure of how much floor space you can build compared to your lot size.
On a 5,000 sq ft lot, an FAR of 0.6 means up to 3,000 sq ft of total building area.
Source: City of Edmonton Zoning Bylaw 20001
The percentage of your lot that buildings can cover when viewed from above.
40% coverage on a 5,000 sq ft lot means buildings can cover up to 2,000 sq ft of ground area.
Source: City of Edmonton Zoning Bylaw 20001
The 3D space on your lot where you're allowed to build, defined by setbacks and height limits.
Think of it as an invisible box showing exactly where your building can go.
Source: City of Edmonton Zoning Bylaw 20001
Reading Your Results
Results are the numbers the app calculates from your inputs, like returns and cash flow, while a recommendation would be advice on what to do. This tool provides the first, not the second.
Source: Parsla plain-language explainer
Core Concepts
The official survey record of property boundaries and parcel dimensions — the lot lines on file, not an outline traced from an aerial photo.
Parsla licenses cadastral parcel geometry from Altalis, so a lot’s boundaries and area come from the survey record.
Source: Altalis — licensed cadastral parcel geometry
Housing Types
A small, secondary home accessed from a rear lane or alley, built at the back of your property.
Also called a garden suite or coach house — perfect for rental income or family.
Source: City of Edmonton Zoning Bylaw 20001
A detached secondary home in your backyard, separate from your main house.
Can be used for aging parents, adult children, or rental income.
Source: City of Edmonton Zoning Bylaw 20001
A living space built above or attached to a detached garage.
Combines parking below with a rental unit or guest space above.
Source: City of Edmonton Zoning Bylaw 20001
A secondary, self-contained living space on a property with a main house.
Garden suites, garage suites, and basement suites are all types of ADUs.
Source: City of Edmonton Zoning Bylaw 20001
Building Requirements
How tall your building can be, measured from ground level to the roof peak.
A 10m height limit means roughly 2-3 storeys depending on ceiling heights.
Source: City of Edmonton Zoning Bylaw 20001
The main house on your property, as opposed to secondary structures like garages or garden suites.
Your primary single-family home is the principal dwelling.
Source: City of Edmonton Zoning Bylaw 20001
Note: These definitions are simplified for general understanding. Always consult your local municipal zoning bylaws for complete legal definitions and requirements specific to your property.