Aiming to improve the error correction performance of polar codes, researchers have proposed employing the product coding structure involving RS codes of different rates in the horizontal direction and the short polar codewords along the vertical direction. However, there is no efficient algorithm optimizing the rate allocation of RS codes. In order to address this problem, this paper provides an analytical formulation by maximizing the number of correctly decoded information bits. The proposed rate allocation formulation takes the channel statistics into consideration, and we further find that the number of different RS code rates could be limited to a small value. By doing so, the complexities of both the rate allocation optimization and the iterative product decoding could be reduced. Simulation results demonstrate the superiority of RS-polar product codes with the proposed rate allocation method over both additive white Gaussian noise channels and Gilbert–Elliott channels. When the inner polar codes of rate 1/2 are utilized, the optimized RS-polar product codes of low-to-medium rates significantly outperform the successive cancellation decoding of long polar codes, in the regime of a frame error rate ≥10−3.