Data rate allocation decisions are made for a communications channel, such as a wireless reverse link connection. A first parameter used in this determination is a path loss, which is determined by the following process. First, a message is sent from a first station to a second station, such as on a paging channel. The message indicates a forward Effective Radiated Power (ERP) of a pilot signal transmitted by the first station. The second station then determines the received signal strength of this pilot signal, taking into account receiver gains. The path loss can then be estimated by the second station as the difference between the forward ERP data value that it received and the detected received pilot power. The second station also then preferably determines a transmit power level when transmitting a message back to the first station. This transmit power level information is encoded as a digital data word together with the forward path loss information as calculated by the first station. Upon receipt of these two pieces of information by the first station, the forward path loss estimate as calculated by the second station, and the output power value of the second station, the first station can then determine the amount of excess power available at the field unit. This excess power difference is indicative of the amount of dynamic range available in the transmit power amplifier in the particular second station. With this information, the first station can then make a determination as to whether coding rates which require a higher dynamic range will be acceptable for use by the particular second station.