I think that between 1 and 4 meters per tile (a tile is a quad made of 4 neighboring vertices from the heightmap) is a good resolution for a FPS. I don't know about the optimum size (how many tiles, but they usually need to be power of two) for a terrain zone or how many zones fit in memory in Unreal Engine (and this also depends on your hardware target). But I guess that, if you need a map of let's say 4 by 4 km (an average FPS scene), with 1 meter per tile (which is a very good resolution) you will need 8 by 8 zones of 512 tiles each (or 4 by 4 of 1024 tiles each). If you decrease the resolution by 2 (and have 2 meters per tile) you also decrease the memory size by 4 (you will need only 4 by 4 zones of 512 tiles). So I think you should experiment and see what is the best choice.
People that already have working builds on UDK can further provide examples of their maps. I am only speculating here based on my experience with other engines.
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