Rule: Curtain rods are to be hung just above the window trim.
Raise Your Curtain Rod...
Where you hang your drapes or curtains will determine your overall look in the room. A great way to make a small window appear larger or a low ceiling appear taller is by installing your curtain rod near the ceiling.
image via Better Homes and Gardens
Give the illusion of height by strategically placing your window treatments. Draperies should graze the bottom of the window sill or floor.
Are you a rule breaker, Where do you hang your curtain rods?