Assuming the earth is a perfect sphere (it is not, but close enough) with a radius ‘R’ of 3959 miles (or ×5280 ft/mi = 20903520 ft), the circumference is 131340690 feet (using 2×PI×R).
360 degrees of longitude covers 131340690 feet. 180 degrees of latitude covers 65670345 feet.
If you want to store lat/lng down to an accuracy of 3 feet, you need to be able to store 43780230 (131340690/3) longitude value and 21890115 (65670345/3) latitude values. 43780230 requires 25.38 bits (log(43780230)/log(2)) to store and 21890115 requires 24.38 bits (log(21890115)/log(2)) to store – or just under 50 bits (or 6.25 bytes).
So the obvious question becomes, if you want to store latitude and longitude in just 6 bytes, what will the accuracy be? Well, 6 bytes is 48 bits. That means 23.5 bits for latitude and 24.5 bits for longitude (longitude has twice as many values, which is just one bit and 24.5-23.5=1 bit). So 23.5 bits allows you to represent a number from 0 to 11863282 (11863283 values). And 65670345 feet divided by 11863283 values is 5.53 feet (and the same accuracy value for longitude).
THE BOTTOM LINE: So, if you can live with 5.5 feet of accuracy for both latitude and longitude, you can pack both values into just six bytes.
*A SIDE NOTE: Regarding comments that latitude and longitude are horrible for storing the positional information around a sphere (because there is less information to store at the poles) – well, those comments don’t hold up to the math! Let’s figure it out. Let’s say we want to design a new perfect system that can record and place a stake in the ground in the center of every square foot of earth. The surface area of earth (with a R of 3959 miles; formula for surface area of a sphere) is 5490965469267303 SQ FT – that many stakes requires 52.29 bits to represent. Now the existing latitude and longitude system uses a rectangular system. The width of the rectangle is the circumference of the earth and height of the rectangle is 1/2 the circumference) – which is 131340690 * 65670345 (see far above), or 8625188424838050 SQ FT – which requires 52.94 bits to represent (this system places ‘too many’ stakes in the ground around the poles). So, the shocking answer is that both the new perfect system, and the old lat/lng system, would BOTH require 53 actual bits to store a single location on earth, down to 1 foot accuracy!