Goodman and Rheem are both major residential HVAC manufacturers with broad dealer networks and full product lineups. If you're shopping for a new furnace in Minnesota and comparing these two brands, here's what you need to know about how they stack up on efficiency, pricing, reliability, and warranty.
Brand Background
Goodman
Goodman Manufacturing, based in Houston, TX, is a subsidiary of Daikin Industries — the world's largest HVAC company. Goodman focuses on producing reliable residential equipment at competitive prices and is distributed through wholesale distributors. It's one of the most widely installed brands in North America. Goodman also makes Amana (premium tier) under the same parent company.
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Rheem
Rheem Manufacturing, headquartered in Atlanta, GA, is a privately held company with a long history in water heaters, furnaces, and air conditioners. Rheem makes both Rheem (mid to premium residential) and Ruud (commercial and contractor-focused) equipment. They're one of the few companies with significant market share in both HVAC and water heating.
Efficiency Comparison
| Tier | Goodman | Rheem |
|---|---|---|
| Entry | GMSS96 — 96% AFUE, single-stage | R96V — 96% AFUE, single-stage |
| Mid | GMVC96 — 96% AFUE, two-stage, ECM blower | R96TA — 96% AFUE, two-stage, ECM blower |
| Premium | GMVM97 — 97% AFUE, modulating, ECM blower | R98MV — 98% AFUE, modulating, ECM blower |
Both brands offer comparable efficiency at each tier. Rheem's premium modulating furnace edges to 98% AFUE vs. Goodman's 97%. In practical terms for a Minnesota home, the annual gas savings difference between 97% and 98% AFUE is approximately $15–$30/year — not a meaningful factor in purchasing decisions.
Pricing
Goodman is generally priced more accessibly than Rheem. Through a factory-direct wholesaler like Furnace Direct, a Goodman 96% AFUE two-stage furnace typically runs $900–$1,300 depending on BTU size. Rheem equipment of comparable specifications typically sells for $1,200–$1,800 at the wholesale/distributor level.
Both brands add contractor labor on top — but the equipment cost difference is real. For homeowners purchasing equipment separately and hiring local contractors for installation, Goodman's lower equipment cost is a meaningful advantage.
Reliability
Both brands have solid track records when properly installed. HVAC industry surveys and consumer satisfaction data generally rank both Goodman and Rheem in the middle of the pack — not industry leaders, but reliably competent. Neither brand has notable widespread quality issues in recent years.
Key reliability factors for any brand: installation quality (the most important factor), filter maintenance, and regular service. A well-maintained Goodman will outlast a neglected Rheem, and vice versa.
Warranty
Both brands offer 10-year registered parts warranties and lifetime heat exchanger warranties. The structures are virtually identical. Goodman requires registration within 60 days of installation; Rheem has similar requirements. See our Goodman warranty guide for details on how to register and make claims.
Parts and Service Availability in Minnesota
Goodman has broad parts availability through Daikin's distributor network — most HVAC supply houses in Minnesota stock common Goodman parts. Rheem parts are similarly available through Rheem/Ruud distributors. Both brands are well-supported in the Minnesota market.
Which Should You Choose?
For most Minnesota homeowners shopping on value, Goodman offers comparable performance and reliability at lower equipment cost. The efficiency difference is negligible, the warranty is equivalent, and parts availability is comparable.
Rheem may make more sense if: your existing system is Rheem and your contractor is experienced with it, or you're choosing between brands at identical pricing through your contractor.
Buy Goodman at factory-direct pricing at furnace.direct/collections/heating.
Related reading: Goodman vs. Carrier | Goodman vs. Lennox | Furnace Brands Ranked 2026
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