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A living room or family room rug should be large enough that the main pieces of furniture (sofa, loveseat, chair, and coffee table) are all sitting on the rug, or at minimum have the front legs on the rug. Without the rug, it can feel as though the furniture is "floating" in the room.
Area Rugs. ... The warmth of the rug will keep your feet toasty, too. The best way to hold down your heating costs is to heat your home efficiently while keeping the cold out. Adequate insulation in the attic, heavy window treatments and an extra rug on the floor will help to keep a room warm.
Place the rug in the centre of the living room (under your ottoman or coffee table) and place (at least) the front legs of your your sofa and armchairs on the rug too so that the rug disappears underneath the furniture, and the furniture frames the area.
In a big open-plan space, the rug should sit under the front legs of both the sofas – or if you have a large rug, then both sofas can sit completely atop the rug. If you have chairs in the space as well, then the front legs of the chair should be touching or "hovering" on the rug.
The size of an area rug can dramatically alter the room's overall effect. A rug that is too small for your space can cause the room to feel uninviting. A rug that is too large for the room can, paradoxically, make the room feel smaller.