This paper presents a design for a nonlinear rear-wheel steering (RWS) controller tailored to urban demands. The proposed yaw rate controller structure uses the method of input-output linearization (IOL). Instead of classical feedback linearization states are obtained from a controller design model excited by current requested control input. The linearized model is mainly driven by reference yaw jerk thus ensuring quick reactions. A proportional-derivative (PD) feedback control input is applied for stabilization. The input affine controller model covers unsteady-state tire behavior. Model validation has been performed using an experimental vehicle. A sports vehicle has been selected to set the reference trajectories. Control performance is demonstrated through a complex validated simulation model.