That's a whole lot of brown. You might consider something with more texture and contrast, like the Ikea rug featured in today's dream room (Basnup?). I think your need something lighter on the floor.

Try overstock.com! They have tons of options at great prices.

no rug

I think your use of color and soft textures already make the room look cozy! If you wanted to try something else, how about some updated window coverings?

I just bought this rug for my living room -- hasn't come yet, but it is dirt cheap and has great reviews: http://www.rugsusa.com/rugsusa/rugs/garland-rug-sparta/tan/358CL1001-76096.html
I don't think brown is the way to go if you are trying to avoid dark/boring. I think you need something with texture or pattern. This rug is a bit subtle but might do the trick.

I agree, a light pattern would really bring the room to life here. Even if you keep it neutral. Overstock(dot)com has a lot of decent inexpensive options. I also saw some interesting options at HomeGoods recently.

No way! Way too much brown. I just picked up an Indian Kilim rug off Craigslist and would recommend you do the same.

http://1.bp.blogspot.com/_bG6G4xCe6SM/SkMCAE2b0CI/AAAAAAAACGk/ZQnCSlRT3EI/s400/kilim+rugs.jpg

What about using an outdoor rug with more texture and pattern? They are about in that price point. I think your space is screaming for some kind of break from the solids. I picked up a 5x8' flat weave rug from a Crate and Barrel outlet store for about $110. Also, watch TJ Maxx and such. They don't always have rugs as large as 5x8 but sometimes they do if you investigate the ones folded up on the shelf. I've definitely seen 4x6's there, which may work for your space.

1. I don't like rugs on top of carpet.
2. Don't go with brown, you have too much brown-ish in your space.
3. Go with a bold pattern, it is too solid in there.

It looks like you have a cozy spot there now, but I can see why you want a rug. I would recommend something mid-range in color, between light and dark (darker than your carpet, lighter than the wall). My feeling is that the brown Ikea rug will be a little heavy, and do what you don't want, which is to make the room feel dark. I think you do need a little texture/pattern in the room for some visual interest and to create that cozy feeling. I 2nd Overstock, and maybe something like the "Alexa Chevron Rug" in brown/cream, or if that's too modern for you, even a simple sisal or a jute rug could give you some texture/cozy-factor and can be found at good prices. Good luck!

Personally I'd prefer Kattrup but when I look at your style I wonder if you wouldn't rather have something like Stockholm Figur.

The carpet should be placed so that the front legs of the sofa are on it.

I wouldn't go with a rug. I'd opt for slipcovering or reupholstering your ottoman in a fun print and supplementing with large pillows and a coordinating throw. It may sound cliche, but there's nothing better than flopping on the floor with a giant pillow and a blankie.

When a rug is placed on a carpet it tends to get messier than when it is on a hardwood or tile floor - corners occasionally get flipped, big wrinkles always appear. I'd avoid it.

Maybe a rug with a pattern. Something that has the rug on the walls. You will probably want a flat weave like a dhurrie if it is going on top of the carpet.

Also don't forget to check the size of the rug. Is it going under the coffee table? Mark it out with blue painters tape or use a blanket folded to size and see if it is big enough.

It is hard to judge from just one photo, but this looks like a very awkward room.

Do you have a coffee table? That's what I think your room needs.

maybe a nice patterned throw blanket to drape across the top of the couch? textured pillows too.

I don't think you'll like the brown there, unless you slipcovered your sofa with a bright pattern or something. I would go with something like this...http://www.overstock.com/Home-Garden/Poolside-Red-Beige-Indoor-Outdoor-Rug-4-x-57/6624843/product.html

It pulls in the red from the wall, but also blends with the color of your couch. Also, your style looks contemporary, and the pattern will compliment the feeling you're trying to go with. I'm not a professional, but that's my opinion :)

I agree with everyone else. No way should you buy that rug.

Look on craigslist. you can always ask for a lower price. I agree you need a pattern here. keep it small and add an accent coffee table that is simple and not just there to collect stuff. Maybe keep it small too so it looks nice, but doesn't add clutter.

I'd go with the coffee table suggestion. I also think that the room needs some color, texture, and pattern. Have fun, liven it up.

That rug looks like a left-over bath towel from a 70s bachelor pad.

Okay, based on what I can see from the photo here's what I would do if this were my room: First, the throw on the couch is competing with the wall color and loses impact. If you had another with a pattern or texture, I'd switch it out. Second, I'd pull the sofa off the wall and turn it to face the fireplace. I'm assuming it's facing the tv/entertainment wall? Then I'd get the Ikea ERSLEV flatwoven rug in the 4'7"x6'7" and at $40 it's a steal. Then I'd use a rubber stamp or doormat to make a block print pattern on the rug using this technique: http://www.apartmenttherapy.com/how-to-make-a-b-138526
I agree with the other posters about a coffee table. Perhaps use an old trunk found at a flea market, craigslist, or garage sale? Otherwise, maybe two petite round side tables as side-by-side coffee tables.

With such a dominant color on your wall, you may want to stick to metallic tones, satiny greys, and mirrored accents to tie it all together. See this example for layout and color ideas: http://www.apartmenttherapy.com/patricias-whimsical-cottage-109345

That's what I'd do if it were my space at least.

Thank you so much everyone for your help! We actually went to IKEA the other day to look at the rug and turned around and never looked back. Then we started thinking that maybe our living room would work without a rug.. what do you think? I did get a pillow with a pattern on it and also a poof with some texture/pattern.
And here is a picture of the other side of the room- http://www.flickr.com/photos/80452854@N07/7374640940/

The coffee table is a great idea, and I almost bought one at Ikea when we were there. However, we have a two-year-old and a smallish apartment and we really need that open space in the living room for running around and playing.

Good call on not getting the rug -- I would second the suggestion for a small coffee table! I know not everyone is into matchy-matchy stuff, but it doesn't look like you have a ton of space, and something that is super neutral, glass/metal, or matches your TV stand would fit well visually in your smaller space -- at least that's what I've found works well in our small living room (the trunk idea is a great suggestion). Also, now that I can see the other side of the room, I think you've done a great job so far! And, while red is my favorite color, I'm not a huge fan of the red "accent" wall behind your couch... too much red and it darkens the room.

Best of luck!

I wouldn't pick that rug. Your room needs some colour or something light. I also think the living room furniture needs to be rearranged. Is the furniture seating direction pointed to a kitchen? You should also have a coffee table so that you seperate the two spaces from the carpet to the lino of either the dining room or kitchen.

PIECOUR- It faces the other side of the living room with the tv and fireplace. I posted a picture of the other side of the living room a few comments up. When you walk into my apartment, the couch is directly in front of you. The wood flooring you can see a smidge of in one of the pictures is the entryway. To the right of the couch is the kitchen and directly to the right when you walk in the front door is the dining room.

Thank you all so much for all your suggestions!

I agree that the brown rug is a bit bath mat-ish and that introducing a pattern into the room is a good idea. I personally would go for some throw pillows as a cheap way to pull things together, but here are a few inexpensive rugs from ebay that might work for you as well:

http://www.ebay.com/itm/2x3-Thick-Contemporary-Modern-Lines-Black-Red-Blue-Brown-Gold-Wool-Area-Rug-/251072257036?pt=US_Area_Rugs&hash=item3a75129c0c

http://www.ebay.com/itm/Hand-tufted-Multi-Wool-Kozy-Carpet-Area-Rug-3-x-5-/180645905093?pt=US_Area_Rugs&hash=item2a0f55c2c5

http://www.ebay.com/itm/Hand-knotted-3X5-Wool-Kazak-Area-Rug-H1446-Actual-3-2-X-5-0-/360459797816?pt=US_Area_Rugs&hash=item53ed140538

Are you crafty at all? You might be able to DIY two one or poufs in a bold pattern that helps bring your colors and textures together. They could serve as quasi-ottomans, and two year olds love jumping on big pillows. I totally get the teeny tiny budget thing, too- I just bought a few yards of some awesome upholstery fabric for $4. I have an old fiber filled mattress topper that got too lumpy for the bed, but would make great ottoman stuffing. Good luck!

yep, no rug on top of carpet. your dark wall makes the room dark - paint it? your furniture is uniform in color and bland. get some with pattern and color? Or add that in pillows and slipcover? You carpet is one color....and neutral...there is no reason anything else needs to be one color and/or neutral in color.