Founded 1925 · Rheem Manufacturing / Paloma Co. · Mid-Range
Rheem Manufacturing, headquartered in Atlanta, Georgia, is best known as a dominant player in residential water heaters — a reputation that carries over into strong contractor familiarity with their HVAC line. Founded in 1925, Rheem is privately held by Paloma Co. of Japan. The HVAC and water heater lines share the same distribution network, making Rheem a convenient one-stop brand for plumbing/HVAC contractors.
Ruud is Rheem's contractor-focused sister brand, sharing identical engineering. Rheem targets the retail and builder channel while Ruud focuses on HVAC wholesalers.
Rheem's Prestige Series RP21AZ variable-speed system tops out at 22 SEER2, competitive with the mid-upper tier. The EcoNet smart platform provides remote monitoring and diagnostics. Rheem's heat pump water heater line pairs well with the HVAC system for whole-home energy efficiency planning.
Rheem manufactures in Fort Smith, Arkansas. Parts availability is strong nationally, with the advantage that plumbing and HVAC supply houses commonly stock Rheem products simultaneously. Wide distribution through both HVAC wholesalers and home improvement retailers provides strong supply chain redundancy.
Rheem has a solid reliability record, particularly in the South and Southwest where the brand has deepest market penetration. The equipment is well-regarded for handling high-ambient-temperature conditions — important in markets like Texas, Florida, and Arizona.
Rheem is an excellent choice in the Sunbelt and coastal regions where the brand has deep dealer penetration and proven hot-climate performance. Also a natural fit when bundling HVAC replacement with a water heater — the shared dealer and parts network simplifies service.