We present a detailed analysis of the effect of an observationally determined dark matter (DM) velocity distribution function (VDF) of the Milky Way (MW) on DM direct detection rates. We go beyond local kinematic tracers and use rotation curve data up to 200 kpc to construct a MW mass model and self-consistently determine the local phase-space distribution of DM. This approach mitigates any incomplete understanding of local dark matter-visible matter degeneracies that can affect the determination of the VDF. Comparing with the oft used Standard Halo Model (SHM), which assumes an isothermal VDF, we look at how the tail of the empirically determined VDF alters our interpretation of the present direct detection WIMP DM cross section exclusion limits. While previous studies have suggested a very large difference (of more than an order of magnitude) in the bounds at low DM masses, we show that accounting for the detector response at low threshold energies, the difference is still significant although less extreme. The change in the number of signal events, when using the empirically determined DM VDF in contrast to the SHM VDF, is most prominent for low DM masses for which the shape of the recoil energy spectrum depends sensitively on the detector threshold energy as well as detector response near the threshold. We demonstrate that these trends carry over to the respective DM exclusion limits, modulo detailed understanding of the experimental backgrounds. With the unprecedented precision of astrometric data in the GAIA era, use of observationally determined DM phase space will become a critical and necessary ingredient for DM searches. We provide an accurate fit to the current best observationally determined DM VDF (and self-consistent local DM density) for use in analyzing current DM direct detection data by the experimental community.