Rate control (RC) is crucial in controlling compression bit rates and qualities for networked video applications. In this paper, we propose a new rate-distortion (R-D) model and an efficient rate control scheme for H.264/AVC video coding, which elegantly resolve the inter-dependency problem between rate-distortion optimization and rate control by eliminating the need of coding complexity prediction for an inter-frame. The objective is to achieve accurate bit rate, obtain optimal video quality while reducing quality variations and simultaneously handling buffer fullness effectively. The proposed algorithm encapsulates a number of new features, including a coding complexity measure for intra-frames, a rate-distortion model, an accurate quantization parameter (QP) estimation for intra-frames, an incremental quantization parameter calculation method for inter-frames, a proportional+integral+derivative (PID) buffer controller, and an intelligent bit-allocation-balancing technique. Our experimental results demonstrate that the proposed scheme outperforms the JVT-G012 solution by providing accurate rate regulation, effectively reducing frame skipping, and finally improving coding quality by up to 1.80 dB.