Ikea has a good selection and I've had 2 for 2-3 years and they've held up well. They range from $19 -$300, obviously some are higher quality than others ;) Overstock.com also has a lot, but I'd hate to order one w/o seeing it. You could also check out Flor.com -their's are carpet tiles, but I'm always surprised how nice they look in the catalog.

I would try Home Goods. I am always surprised by the beautiful choices they have.

I'm on a similar mission now. The other day, someone posted about Martha Stewart rugs from Home Depot. I haven't ordered one, so I can't speak to the quality, but they look nice. The other place I found recently is Also agree with the Home Goods suggestion, but would add World Market. Finally, I just found this site www.homedecorators.com. I haven't ordered from them, but they do have some options in your range.

Overstock.com! Of course I can't speak for the quality of every rug, but we got a really decent 8'x10' rug for $160 with (FREE SHIPPING!). It's worth it just to not have to drag the thing home from the store yourself. If you're really particular about colors, you might not want to go this route. Our rug wasn't exactly what we were expecting, both design and color. But you know what they say, "Beggars can't be choosers."

Anthropologie is my favorite. I am always checking out their sale prices on crewel rugs. I think the regular prices are too high, but the sales are quite good and within your budget I think. Just to know, the crewel rugs are not so much for plushness as they are for stunning embroidery (and I've machine-washed them with no problems); you'll need a pad underneath to prevent slippage. GL!

I also would suggest Overstock.com. Just last week we got a very nice 8X10 rug, with a really nice rug pad, with delivery for $201.00
I LOVE the rug. It's possible if my budget was unlimited I may have chosen something a bit more trendy, but then I might be sick of it in a few years. I saw a few that I thought had some of the same qualities as the Gardenia (which is lovely). Take a look. Read the reviews on overstock, which some of which I think are overly harsh. Our rug was said to be "super thin" and I don't think it is, and with the nice pad we got, it is super cushy and I just LOVE it!

Overstock..they don't dislose it but the last rug i bought was from safavieh.
Ikea is great too...but i really love Overstock.

After scouring the market for a cheap rug for my living room as well, I finally purchased mine at One Kings Lane. It was only $69 with shipping, and it's about 5x7. So I would suggest either one of those private sale websites or Lowe's. They had a pretty good selection that was pretty inexpensive.

The ones at both my Homegoods aren't very attractive, so I wouldn't recommend those. I would consider a 5x7 for $100 or less on a true budget.

http://www.homedepot.ca/webapp/wcs/stores/servlet/CatalogSearchResultView?D=916793&Ntt=916793&catalogId=10051&langId=-15&storeId=10051&Dx=mode+matchallpartial&Ntx=mode+matchall&N=0&Ntk=P_PartNumber

Rag rugs are pretty hot right now. I found my 5x8 at a local grocery store (of all places) for 5.99!

I'd also suggest Overstock. I purchased a 5x8 for less than 200 dollars with shipping. Mind you, they sent me the wrong one at first, but they shipped a new one immediately and I was able to ship the wrong one back for free. It's surprisingly thick and bright. However, I wouldn't suggest a bold contrast of colors if you have cats (mine is red on white) because it's obvious when they've been scratching it.

Homegoods and Horchow are having their rug sales. Horchow is offering 20% and free shipping. CSN is a good source if you don't need the item immediately. The have a problem with keeping delivery dates.

I'm in Philadelphia also and have had luck at the Crate and Barrel outlet in Cranbury, NJ. And surprise surprise ... The Dump in Oaks, PA. The furniture is awful but they have a huge assortment of wool rugs for very affordable prices. All sorts of styles and sizes.

How about an orange 5x8 rug from west elm?
http://www.westelm.com/products/iznik-dhurrie-g220/?pkey=crugs-flooring

Or maybe a rug made of catpet tiles from Flor - then you could do something totally unique to your space in whatever color combo you want

Overstock.com is a great rug resource. Delivered right to your door for a buck! Can't beat that. One tip I've learned about online shopping is to find a couple you like, then check it out on different computer monitors to see variations in the colors that might not show up on yours. And pay attention to the reviews to see if they say the "tan" looks more "gold", or the "red" is more "purple", and compare that with what you are seeing on your monitor.

FLOR. Even though it has been said already, the tiles are easy to wash, look great, and if you ever want the rug bigger just add a couple of tiles.

Urban Outfitters and Dash and Albert have quite a few colorful options if you are open to flat/cotton rugs. And I don't know how crafty you are, but another option might be painting/printing a pattern onto a flat natural-fiber rug (like sisal or similar). It's easier than you might think!

Wow!! Thanks for all the great tips! I really love the look of Anthropologie and West Elm too. I haven't done much shopping (just browsing) on Overstock, but after reading all the recommendations I think I'll take a shot! Also, I've always been curious about The Dump, and I didn't know that there was a Crate and Barrel outlet in NJ... that's GREAT news!! I have a few more inspiration photos on my blog The Tiny Abode: http://thetinyabode.blogspot.com/

I'm trying to work with a few other color elements in my living room. If you have any pictures of recommendations, they would be greatly appreciated. Again, a BIG thanks for all of the advice!!

Don't forget to check Craigslist at least daily.

And, look into stencilling your own onto heavy canvas, so you can control the exact size.

C Company rugs are beautiful: I noticed they are all hooked wool, and have a vague memory from childhood of my greatgrandmother showing me how to hook a rug. I think they sell kits for that at craft stores, and it was easy enough that a very young kid could do it. I think the hardest part would be designing your own pattern.

Another post advocating Overstock! I bought a great, deep-pile, hand-knotted 5x8 area rug for about $250 (plus the 2.99 shipping!) and it was BETTER than I had hoped. You can search by color or size on the website.

Try the CostPlus World Market. They have great rugs that are pretty reasonable.

target, kmart and walmart. I know it's not cool but I have rugs from all 3 of them.

Avoid West Elm. I got a wool rug (8 x 10) on sale for $300 from them two years ago and it is already falling apart.

Overstock fo SHO! I got a gorgeous, square, wool, handwoven and CARVED rug for $150 with free shipping. You can't beat that with a whiffle ball bat!

I'm a big fan of the basic jute bordered rug. While it goes with everything as-is, I tend to want specific things. I can't believ no one has suggested painting your own design on one. There are great stencils out there, and you can use any color latex paint on the jute rug. I would suggest a Greek-key border or a damask stencil, in any color you want! Orange and green would look particularly awesome.

This $179 black and white striped Ikea rug would make the room look a bit more modern. Not sure if you'd want that, though. I have had it for 6 months and absolutely love it! Not to mention all the complements that I get about it.

Forgot the link to the striped Ikea rug:

http://www.ikea.com/us/en/catalog/products/80104862

M&M Design in NY have some colorful hooked rugs and very inexpensive - http://www.mandmgallery.com/sara_schneidman/hookeddesigns.asp

Costco anyone? Not sure if it applies to rugs, but generally their return policy rocks and they have good quality stuff. http://www.costco.com/Browse/Productgroup.aspx?Prodid=11599116&whse=BC&Ne=4000000&eCat=BC|93|90379|56615|4489&N=4045882&Mo=28&pos=0&No=6&Nr=P_CatalogName:BC&cat=4489&Ns=P_Price|1||P_SignDesc1&lang=en-US&Sp=C&ec=BC-EC10595-Cat56615&topnav=

I bought one of their indoor/outdoor ones last fall and its holding up great. I concur with Homegoods - especially since their inventory seems to turn over so quickly. There is always something new there.
I have never ordered rugs from overstock, but have had great luck with clothes, furniture and even jewelry from there. No complaints there.

I second, (third? fourth?) homedecorators.com. Huge selection, great prices, shipped to your door. I got a 14' (14'!) hall runner in the most incredible colors and pattern, pure wool, thick and beautiful for $89, including shipping from their outlet, once. Looks as good as new, 8 years later. Plus, you can search by color, fiber, size, shape......

Thank goodness for this post! I am in the same boat and in Philly as well. I will definitely look at some of these places. As of now I was probably just going to hit up Ikea, but I think I will spend more time and effort on my search.

I was also thinking maybe one of the Jomar stores in Philadelphia would be good to check. I know they can be hit or miss, but it is always fun to see what they have in rugs and fabrics.

I have a Company C rug that i bought at HomeGoods, actually! It's a 4x6...got it on clearance for $30. Keep an eye out and it can happen!

try rugsusa.com i've gotten several great rugs from there for super cheap, anywhere from 20-50 percent off. also with free shipping!!!

Be careful with second hand rugs. I bought one off of Craigslist -- a beautiful 50 yr old Afghan rug -- only to get infested with moths.

I have been scouring Aparment Therapy for help with the same question! I tried both Urban Outfitters and Ikea - their rugs looked good on screen but looked and felt cheap when I got them. Never found much on Overstock.com that was especially pleasing to the eye. I narrowed it down to Dwell Studio rugs (http://www.dwellstudio.com/modern-home-decor/rugs.html - the Draper Stripe rugs appear to be sold out at the moment, but were in the mid $200s) and West Elm, and finally settled on the Kite Killim rug at West Elm (http://www.westelm.com/products/kite-kilim-rug-r894/?pkey=crugs-flooring). It's well-made, good-looking, and met my $300 budget. The West Elm prices seem to vary quite a bit, so keep an eye for new arrivals and sales. (I haven't found any issues with their products, like the earlier poster mentioned).