I'm going to refuse to pay rent and demand to live for free
Why do you want to refuse to pay rent and demand to live for free?
I feel very angry towards my parents for having this rule.
I understand that you don't want to have to pay your parents for your living expenses, but if you are old enough to live on your own, you shouldn't get a free pass from your parents. Pay your parents. You are probably getting a better deal than if you were living on your own.
Tell that to them. They want to raise the rent at their house to rent according to high end apartments.
Well, then I would just live where I could afford to live, but living for free is not going to be acceptable anywhere these days. Get a better job so you can pay for your living expenses.