Methods and systems for dynamically adjusting a data rate in a wireless connection are provided. The systems include a source device and a sink device configured to establish a wireless connection. The quality of the wireless connection is monitored. Should the quality degrade so as to satisfy a triggering event, the source controller can adjust the data rate, e.g., the bit rate or sample rate, used to reduce the number of dropped, lost, or retransmitted packets. The reduction in bit rate and/or sample rate results in packets of decreased size and additional unused air-time. The unused air-time provided can be filled with at least a portion of a frame of data originally associated with another packet. This will result in at least one packet being free to include additional retransmission packets. Additionally, should the quality of the connection improve, the source controller can adjust increase the data rate accordingly.