No problem w/ a 225/70/16 tire. Loaded and off-road there is no rubbing.
You can go up to a 225/75/16 w/o a lift and only get minor rubbing at full lock or on heavy loads. I've been told that the DAP lift kit eliminates the rubbing.
Here are my 225/70/16 BFG's (no lift, no rubbing):
