A transmit data rate adaptation method in a multiple-in-multiple-out (MIMO) system with a first transceiver and a second transceiver. The first transceiver transmits signals to the second transceiver. The second transceiver analyzes channel quality of the received signals and uses link adaptation to generate a shortlist of transmit modes to send back to the first transceiver. The first transceiver cycles through the shortlist of transmit modes to find an optimum transmit mode.