Paloma turns up in tankless searches as an unfamiliar name next to Rheem, Rinnai, and Navien — but it isn’t a scrappy outside competitor. Paloma Industries, based in Nagoya, Japan, bought Rheem Manufacturing outright in 1988 for more than $770 million, and its current portfolio also includes Raypak, Ruud, Eemax, Richmond, Splendid, and Solahart. The Paloma-branded units still sold on Amazon today are a smaller legacy product line from that same parent company, built in the same factories and backed by essentially the same warranty paperwork as a Rheem unit — worth knowing before you assume “Paloma” means an unproven import brand.
Our top picks at a glance
| Model | Best for | Fuel / Install | BTU / Max GPM | Bathrooms | Price |
|---|---|---|---|---|---|
| PH2-25RDVSP | Highest output, indoor | Propane · direct vent | 180,000 BTU · 8.4 GPM | 1–3 | ~$920 |
| PH2-20ROFP | Outdoor, propane homes | Propane · outdoor | 150,000 BTU · 5.3 GPM | 1–2 | ~$700–900 |
| PH-20ROFN | Outdoor, natural gas homes | Natural gas · outdoor | 141,000 BTU · 5.3 GPM | 1–2 | ~$700–900 |
GPM figures are maximum flow at a 35°F temperature rise, per Paloma's published spec sheets — actual usable flow drops in cold-inlet winters, same as any tankless unit. Prices fluctuate on Amazon; check the current listing before buying.
By the numbers
- 1988 — the year Paloma Industries acquired Rheem Manufacturing for more than $770 million, making today’s “Paloma” tankless heaters a product of the same corporate family that builds Rheem’s own lineup, not an unrelated import brand. — company history records (FundingUniverse/Encyclopedia.com)
- 12 years / 5 years — the heat exchanger and parts warranty terms on standard residential potable-water installs, per the manufacturer’s published warranty document; that drops to 3 years on both if the unit is used for space heating instead of domestic hot water only.
- 0.82 — the Energy Factor (EF) rating shared across all three Amazon-listed Paloma models reviewed here, per their spec sheets — a pre-UEF efficiency metric roughly comparable to the lower end of this site’s non-condensing gas roundups.
1. Paloma PH2-25RDVSP — Best Overall (Highest Output)
Paloma PH2-25RDVSP 8.4 Series Direct Vent Tankless Water Heater
- Paloma's highest-output residential unit with real Amazon distribution — rated for 1 to 3 bathrooms, the widest coverage of the three models here.
- Direct-vent design pulls combustion air from outside rather than the room it's installed in, which most local codes require for an indoor gas unit in a finished space.
- ICAD combustion-monitoring system and a film-type overheat sensor around the combustion chamber — Paloma markets these as safety features not found on every competing tankless brand.
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At 180,000 BTU and up to 8.4 GPM in warm-climate conditions, the PH2-25RDVSP is sized closer to this site’s mid-tier whole-house picks than a single-bathroom unit — see our sizing guide to check whether 2–3 bathrooms in your climate actually fits inside that GPM number, since cold-inlet winters can cut usable flow well below the spec-sheet figure.
2. Paloma PH2-20ROFP — Best Outdoor Propane Pick
Paloma PH2-20ROFP 6.4 Series Outdoor Tankless Water Heater
- Outdoor-rated housing skips the direct-vent ducting the PH2-25RDVSP needs, which typically simplifies installation and lowers labor cost.
- Rated for 1 to 2 bathrooms — a step down in coverage from the flagship, sized for smaller homes or secondary units feeding a detached space.
- Propane-only; if your home runs natural gas instead, this specific model isn't field-convertible without a manufacturer conversion kit.
Propane households in areas without a natural gas main are the clearest fit here — pair it with our best propane tankless water heater roundup to see how it stacks up against Rinnai and Eccotemp propane units in the same output class.
3. Paloma PH-20ROFN — Best Outdoor Natural Gas Pick
Paloma PH-20ROFN 5.3 Series Outdoor Tankless Water Heater
- The natural-gas counterpart to the PH2-20ROFP — same outdoor housing and GPM ceiling, 9,000 BTU lower input to account for the fuel difference.
- Skips propane tank logistics entirely for homes already on a gas main, at the cost of being tied to that line's location.
- Same 1–2 bathroom rating and 0.82 EF as its propane sibling — fuel type is the real decision here, not a spec tradeoff.
If you’re replacing an existing natural-gas outdoor unit and want a like-for-like swap without re-running gas lines, the PH-20ROFN is the direct match. For a wider natural-gas field, compare it against our best gas tankless water heater roundup before committing.
How to choose a Paloma tankless water heater
- Largest home, 2–3 bathrooms, indoor install: the PH2-25RDVSP.
- 1–2 bathrooms, outdoor install, propane: the PH2-20ROFP.
- 1–2 bathrooms, outdoor install, natural gas: the PH-20ROFN.
- Want the Rheem name instead of the parent company’s own brand: see our best Rheem tankless water heater roundup — same corporate family, different model lineup and warranty paperwork.
The bottom line
Paloma isn’t an unproven import brand — it’s the Japanese parent company that has owned Rheem since 1988, selling a smaller legacy lineup under its own name. The PH2-25RDVSP is the strongest all-around pick for indoor installs needing real output, while the PH2-20ROFP and PH-20ROFN cover outdoor propane and natural-gas installs at a lower price point. Just don’t expect Paloma’s warranty to be uniformly generous: the 12-year heat-exchanger term only applies to standard domestic hot-water use, dropping to 3 years if you’re using it for space heating. If you’d rather buy the more widely distributed sibling brand from the same parent company, our Rheem lineup guide covers that ground.