We use a variant of the Velcro method described by Markphd on several Navajo rugs to good effect. Velcro is attached to the back of the rug, (a light stitch done by a rug restoration specialist or any quality framer experienced in museum quality preparation). Velcro is also then glued onto a piece of wood which is nailed into the position - much easier to level a piece of wood!
Another alternative not mentioned here is to attach loops to the rug and then hang it from a rod. This can be quite decorative (eg wrought iron with finials etc) if that works in your home.
For smaller pieces a UV plex display box cover. The rug is mounted to a complimentary silk or linen backing then the box goes over it. I mention it because it is a nice way to handle a small piece (up to 2x3 or so) that won't hang well on its own. Obviously this approach negates any acoustical benefits of hanging a rug.
Another alternative not mentioned here is to attach loops to the rug and then hang it from a rod. This can be quite decorative (eg wrought iron with finials etc) if that works in your home.
For smaller pieces a UV plex display box cover. The rug is mounted to a complimentary silk or linen backing then the box goes over it. I mention it because it is a nice way to handle a small piece (up to 2x3 or so) that won't hang well on its own. Obviously this approach negates any acoustical benefits of hanging a rug.