The purpose of the research is to provide guidance as to the land use characteristics in a corridor that can support new fixed-guideway transit services cost-effectively. It is postulated that land use characteristics in a corridor are a significant factor that drive the demand for transit service and, therefore, the value and effectiveness of such services. The research supports making the case for fixed-guideway transit where it is cost-effective and conversely lessening the demand for expensive fixed-guideway services where land use characteristics cannot support them. The research also makes it possible to suggest the nature of the changes in land use that could support transit.