Traditional rugs can work equally well in a modern white loft, a brownstone outfitted in antiques, or an eclectic bohemian apartment. They're also readily available, whether you prefer to shop at high-end galleries, scour your local flea market, or stick to budget stores. Here are 10 high, medium, and low sources.
HIGH
The Rug Company
They have locations in London and New York and, although their strongest collection is contemporary rugs by high-end designers, they also have a Traditional Collection with some gorgeous custom and made-to-order pieces, like this Amritstar 405 rug (call for custom orders).
Claremont Rug Company
This company has a 2-building operation in Oakland, California, where they have 4,000 plus antique rugs. They describe their niche as "art-level antique carpets and first-cabin service." If you're a collector of antique Persian rugs, this is a good place to start.
ABC Carpet
This New York store is known for their high-end rugs by designers like Madeline Weinrib, as well as their collection of antiques. This Antique Anatolian Rug is currently on sale for $2,200 (marked down from $3,900).
Nomad Rugs
Located in San Francisco, this gallery has a nice selection of Kilim rugs, Persian rugs, and other traditional and antique styles. This Suzani Rug sells for $4,600.
MEDIUM
Flea Markets
For a good deal on antiques, check your local flea market. Beautiful old rugs are frequent finds, and you can always haggle for a better price.
The Loaded Trunk
Roni Jaco shops the globe and then sells her finds online. She has a nice inventory of Turkish Rugs in the high hundreds and low thousands.
Rugman.com
This online shop is known for its huge inventory and frequent discounts on mid-range rugs. This is the Kashmar Persian Rug, $1,720.
LOW
IKEA
Their reputation is for Scandinavian modern style, but the rug department has a lot of traditional styles, like this Persisk Rug, $500.
Overstock.com
Always worth a look when you're comparison shopping for rugs, Overstock has a wide range of styles, sizes, and prices. This Alexa Orion Empress Oriental Persian Green Rug is $252.
World Market
This national chain is accessible and affordable and, although you'll find a lot of schlocky styles, there are several decent rugs at super-cheap prices. This Tapestry Latchhook Kilim Rug is available now for $99.
Dirty Little Secrets of Tidy Families
Emi & Nathan's Natural History
Good Food to Share 
The Big Book of Small, Cool Spaces 
Apartment Therapy Presents 
The Eight-Step Home Cure 
Sprout Side Table
5 Things Paris Taught Me About Travel
Recipe: Ham, Cheddar & Chive Egg Bakes
What a helpful post. I needed this!
Has anyone ordered from novica.com? They have some attractive jute rugs for not too much. I've been intrigued by them for some time and was wondering if anyone has had positive (or otherwise) experiences.
I just bought two rugs from overstock; a runner and a matching 5' by 8' area rug. They have a great selection and good prices.
How can I be assured that the rug I will purchase was not made using child labor? This issue is important to me.
I can vouch for rugman.com. we bought ourselves a 10'x13' persian rug from there as a wedding present to ourselves. It was on sale for something like $600, and has the imperfections that show it was hand made. I'm thinking of getting it appraised to find out how much it's actually worth, but in some ways I don't want a number to put on it.
anyways, they claim all their rugs are older than 30 years, I assume because if they've been in the US that long they're not banned by the trade embargo with Iran. I'm not sure I believe them, and there's probably no way to verify something like child labor either, so it's a bit grey market. but isn't that what the internet is for?
Another awesome one-stop site for high, medium and low priced rugs is csn rugs. they have an amazing selection and even better prices!
Re handmade rugs at the lower end -- I bought a very large (10x12) wool oriental rug from overstock for about $400 (and 4295 shipping, of course!), and it is handwoven. It even has the certification of no child labor (cannot remember what the organization is called). But if you buy online, make sure you like it, because I cannot imagine how much it would have cost to ship a rug that heavy back.
I haven't ordered rugs from Novica, but I have purchased a purse and was highly impressed with the service and quality. Also love that you know who made the piece - mine came with a card from the artisan.
I have a rug from Overstock in my living room - I wanted a rug that could handle a toddler and three dogs in a high-traffic part of the home. To get a 9x12 rug shipped to your home all for less than $250 is fantastic and a great choice until we have an older child and/or less pets.
claremont and the rug company are great. large rugs & carpets is a new one on the scene too. I like how it's interactive. Overstock is cool as well, but the photographs lack a lot.