A method and apparatus for dynamic data rate adjustment of a wireless transport channel include processing that begins with one of a plurality of client modules within a wireless multimedia system monitors channel characteristics of a wireless transport channel. The monitoring is done at or below a received packet rate to determine variations in the channel characteristics on a packet-by-packet basis or on a group-of-packets by group-of packets basis. The processing continues when the client module determines whether the variations in the channel characteristics affect the data rate of data contained in the packets received via the wireless transport channel. When the variations in the channel characteristics affect the data rate, the client module provides data rate adjustment feedback to a multimedia server of the wireless multimedia system via the wireless transport channel. The processing continues when the multimedia server adjusts the data rate of the data contained in the packets being transported via the wireless transport channel in accordance with the data rate adjustment feedback.