How Much Does a Rheem Furnace Cost: Prices, Installation and Key Factors

Rheem furnace costs vary widely based on model, size, efficiency, and installation complexity. This article explains typical price ranges, installation fees, extra expenses, and tips to estimate total costs for a Rheem furnace purchase and installation in the United States.

Item	Typical Cost Range (USD)
Rheem Unit (Basic Gas Furnace, 80% AFUE)	$800 – $1,800
Mid-Range Unit (90% AFUE)	$1,200 – $3,000
High-Efficiency Unit (95%+ AFUE)	$2,500 – $5,500
Installation Labor	$1,000 – $3,500
Average Total Installed	$2,000 – $8,000

Pricing Overview For Rheem Furnaces

Rheem offers a range of furnaces including basic, mid-efficiency, and high-efficiency models. Unit prices depend on AFUE rating, tonnage, and features such as variable-speed blowers and modulating gas valves.

On average, homeowners should expect to pay between $2,000 and $8,000 installed for a Rheem furnace. The low end represents a small, basic unit with straightforward installation while the high end reflects high-efficiency models with complex installation requirements.

Factors That Affect Rheem Furnace Cost

Model And Efficiency (AFUE)

AFUE (Annual Fuel Utilization Efficiency) measures how efficiently a furnace converts fuel into heat. Rheem furnaces range from around 80% AFUE to 98% AFUE for top-tier units.

Higher AFUE = Higher Cost: Higher-efficiency furnaces cost more upfront but save on energy bills over time. Choosing between 80% and 95%+ AFUE can change the unit price by $1,000 or more.

Size And Capacity

Furnace capacity is measured in BTUs and must match the home’s heating load. Undersized units result in poor comfort while oversized units cycle frequently and waste energy.

Costs increase with greater capacity; larger homes or colder climates require bigger units, which are more expensive both for the unit and often for installation.

Features And Technology

Variable-speed blowers, multi-stage heating, modulating gas valves, and smart controls increase comfort and efficiency but raise unit price.

Example: A single-stage 80% AFUE Rheem furnace is significantly cheaper than a two-stage or modulating 96% AFUE model with a variable-speed blower.

Local Labor Rates And Installation Complexity

Installation labor varies by region, contractor, and job complexity. Urban areas and regions with higher living costs typically have higher labor rates.

Complex installations that require new ventilation, gas line upgrades, or electrical work can add substantial labor and materials costs.

Ductwork Condition

Existing ductwork that is poorly sealed or undersized can add to costs because the contractor may recommend repairs, sealing, or partial replacement.

Common Duct Costs: Sealing and minor repairs ($200–$1,000); major duct replacement or redesign ($2,000+).

Typical Installation Costs Explained

Installation includes removal of the old furnace, placement and hookup of the new unit, venting, gas or fuel line connection, electrical work, startup, and testing.

Labor typically ranges from $1,000 to $3,500 depending on complexity. A standard replacement in the same location with matching ductwork is on the lower end.

Permit And Inspection Fees

Many jurisdictions require permits and inspections for furnace replacements. Permit fees range from $50 to several hundred dollars.

Permit costs should be included in any installation quote; homeowners should confirm with the contractor that permits and inspections are handled.

Rheem Furnace Models And Price Examples

Below are general price bands for typical Rheem product lines. Prices can vary with dealer, region, and sales promotions.

Rheem Line	Typical Unit Price	Key Characteristics
Rheem Classic Series	$800 – $2,000	Reliable, basic features, 80–92% AFUE options
Rheem Prestige Series	$1,500 – $4,000	Higher efficiency, two-stage or modulating, smart controls
Rheem High-Efficiency Models	$2,500 – $5,500	Up to 98% AFUE, variable-speed blowers, premium components

Additional Costs To Expect

Ductwork, Air Quality, And Zoning

Upgrades for indoor air quality, such as better filtration, UV lights, or humidifiers, add costs but can improve comfort and health.

Zoning systems that control different areas of a home independently are often recommended with higher-efficiency systems and can add $1,000–$3,000 or more.

Fuel Conversion And Venting

If a home is switching fuel types (e.g., from oil to gas or to a direct-vent setup), expect additional costs for conversion and vent installation.

Direct-vent high-efficiency furnaces require specific venting materials and may need structural modifications, increasing cost.

Thermostat And Controls

Smart thermostats, zoning controls, and integration with home automation systems increase both comfort and initial cost. Smart thermostats run $100–$350; full zoning controls vary widely.

How To Get Accurate Estimates

Homeowners should obtain at least three written estimates from licensed HVAC contractors. Estimates should list unit model, AFUE, labor, permits, warranties, and any additional work.

Tip: Request a Manual J heat load calculation to ensure correct sizing. Avoid contractors who size by rule-of-thumb or simply replace with the same nominal capacity without calculation.

Warranty, Lifespan, And Long-Term Costs

Rheem furnaces typically have warranties covering heat exchangers and limited parts warranties; extended warranties may be offered by dealers.

Expected lifespan for a well-maintained gas furnace is about 15–20 years. Regular maintenance can extend life and optimize efficiency.

Financing, Rebates, And Incentives

Many manufacturers and dealers offer financing plans; energy-efficient models may qualify for utility rebates, state incentives, or federal tax credits depending on current programs.

Action: Check local utility programs and ENERGY STAR incentives. Combining rebates with financing can significantly reduce net cost.

How To Save On A Rheem Furnace Purchase

• Buy Off-Season: Fall and winter are peak times; late spring and summer often have better pricing.
• Look For Rebates: Utility and manufacturer rebates reduce upfront costs for high-efficiency models.
• Bundle Services: Combining furnace purchase with AC or air quality upgrades can unlock contractor discounts.
• Negotiate: Ask for itemized quotes and negotiate labor, disposal fees, and add-ons.

Common Questions About Rheem Furnace Costs

How Much Does It Cost To Replace An Old Furnace With A Rheem Unit?

Replacement typically ranges from $2,500 to $7,500 depending on unit efficiency, ductwork condition, and installation complexity.

Are Rheem Furnaces More Expensive Than Competitors?

Rheem prices are competitive with other major brands. Costs depend more on model features and installation than brand alone.

Will A Higher AFUE Save Enough To Offset Cost?

High-efficiency models save energy bills over time. Payback depends on fuel costs, climate, and usage patterns; in colder climates, higher AFUE furnaces yield quicker payback.

Should A Homeowner Repair Or Replace An Old Furnace?

If repairs exceed 50% of replacement cost, or if the furnace is older than 15 years with frequent breakdowns, replacement is usually recommended.

Selecting A Contractor And Ensuring Quality

Choose licensed, insured contractors with positive reviews and verifiable references. Confirm they perform Manual J and D calculations and provide written warranties.

Important: Require an itemized contract detailing the Rheem model number, AFUE, installation steps, permits, and expected completion timeline.

Key Takeaways For Rheem Furnace Costs

• Installed Cost Range: Typically $2,000–$8,000 depending on model and installation.
• Main Drivers: AFUE, capacity, installation complexity, ductwork, and local labor.
• Long-Term Value: Higher-efficiency units cost more upfront but reduce fuel bills and may qualify for rebates.

Further Resources And Where To Get Quotes

Homeowners should consult Rheem’s official website for model specifications and dealer locators, check ENERGY STAR for efficiency guidance, and contact local utility providers for rebate programs.

Obtain multiple written quotes from local licensed HVAC contractors and verify permit handling, warranty coverage, and start-to-finish responsibilities before committing to purchase.