<SEC-DOCUMENT>0001218615-17-000004.txt : 20170314
<SEC-HEADER>0001218615-17-000004.hdr.sgml : 20170314
<ACCEPTANCE-DATETIME>20170314172353
ACCESSION NUMBER:		0001218615-17-000004
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20170311
FILED AS OF DATE:		20170314
DATE AS OF CHANGE:		20170314

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COSTAR GROUP INC
		CENTRAL INDEX KEY:			0001057352
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				522091509
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1331 L STREET NW
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20005
		BUSINESS PHONE:		2023466500

	MAIL ADDRESS:	
		STREET 1:		1331 L STREET NW
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20005

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CARCHEDI FRANCIS
		CENTRAL INDEX KEY:			0001218615

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24531
		FILM NUMBER:		17689006

	MAIL ADDRESS:	
		STREET 1:		C/O COSTAR GROUP INC
		STREET 2:		1331 L STREET, NW
		CITY:			WASHINGTON
		STATE:			DC
		ZIP:			20005
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>wf-form4_148952661934270.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0306</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2017-03-11</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001057352</issuerCik>
        <issuerName>COSTAR GROUP INC</issuerName>
        <issuerTradingSymbol>CSGP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001218615</rptOwnerCik>
            <rptOwnerName>CARCHEDI FRANCIS</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O COSTAR GROUP, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>1331 L STREET, NW</rptOwnerStreet2>
            <rptOwnerCity>WASHINGTON</rptOwnerCity>
            <rptOwnerState>DC</rptOwnerState>
            <rptOwnerZipCode>20005</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Executive VP, Corp. Dev.</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, par value $0.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2017-03-11</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>F</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>695</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>205.18</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>25013</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Represents all shares of Common Stock owned, consisting of 7,472 shares of Common Stock and 17,541 shares of Common Stock subject to unvested Restricted Stock grants.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Jonathan Coleman, Attorney-in-Fact</signatureName>
        <signatureDate>2017-03-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
