A base station in an OFDMA system which determines a modulation and coding scheme to use for a packet of a certain size to be transmitted by a Mobile Station. The base station schedules transmissions by mobile stations and transmits packets. The base station includes a processing unit which determines a number of time-frequency resources required to transmit the packet for a modulation and coding scheme, determines an SINR based on the number of time-frequency resources used and available power at the mobile station, determines a transmission rate as a ratio of the packet size transmitted to the number of time-frequency resources used, sets a rate to zero if the determined SINR is lower than a threshold SINR required for the modulation and coding scheme, and selects the modulation and coding scheme with a highest transmission rate. The base station includes a memory storing modulation and coding schemes.