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Is that true???

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The hra rules are basically the lower of eligibility and actuals minus 10%.
So if your actuals as 18000, you can get tax benefits on 16200 which is still lower than your eligibility. If they are 18500, 16650 will be the eligibility. If 19000, even though 19000 minus 10 percent is 17100, since overall eligibility is 16666. It's for that you will get the benefits
To summarise, actual rent paid of 18700 or above will get the max benefit.
It's a tax benefit. Call it tax exemption or whatever if one does not like the term benefit.
I am obviously not suggesting that some one take a house with more rent to get max "benefits"
19500 to get full hra benefit
If you are asking for HRA tax deduction, then for a non metro city, recommended below 16.5k pm and for metro below 20k.
Or just as a thumb rule, rent + necessary expenses <= 35% of your take home pay.
So Can I go with 16k monthly??