This paper utilizes the value function in prospect theory to construct a theoretical model. Based on the experimental method of behavioral economics, an empirical study is conducted using experiments and questionnaires. The study quantifies the value perceptions of losses and gains in the process of compensation for rural residential land exit among farmers, and then constructs a model for measuring the compensation standard for rural residential land exit with the rationality of value perceptions. The findings are as follows. Firstly, there are significant differences in the willingness of farmers from different rural areas to exit rural residential lands. The willingness to exit decreases in the order of suburban rural areas in economically developed areas, outer suburban rural areas in economically developed areas, suburban rural areas in economically underdeveloped areas, and outer suburban rural areas in economically underdeveloped areas. Secondly, farmers show diminishing sensitivity to changes in both gains and losses. As gains increase, farmers’ sense of pain will gradually decrease, showing a trend of diminishing marginal utility. Thirdly, the farmers show obvious loss aversion. Under the control of other factors, the pain caused by a certain amount of monetary loss can only be compensated by the pleasure from about 1.94 times the amount of monetary income. Fourthly, the compensation standard for the rural residential land exit with value -perceived rationality is not divorced from reality or difficult to accept. The standard has the possibility of realization in theory, but faces double dilemmas in practice. Research suggests that clarifying reasonable temporal and spatial arrangements for the exit of rural households’ residential land when they move to cities, and utilizing more flexibly the policy arrangements for utilizing surplus indicators of urban and rural construction land, can contribute to promoting the exit of rural residential land of the farmers who have settled in the city.