Question (Picture arttached) Should my PSU fan face upwards or downward?

I'd face the fan up since a catastrophic PSU failure could create sparks and set the carpet on fire.

I'd not put the computer on a carpet as thats the worst spot possible to put it. At least get a plastic mat for it or something.

The PSU fan should always be facing downward unless you have a PSU that benefits from it being upward (ie a hybrid PSU where the fan doesn't turn on except under heavy load, heat is normally released by natural convection). This way the fan is always taking in its own source of cool air. And that case has a nice dust filter for the PSU at the bottom too.
 
Unless the case makes it obvious I have the fan facing down. The case I am working in now says it is important I do so. I guess because that is where the vent is. I wouldn't put the PC directly on carpet, even on book would help keep airflow clear. The PC will sink into the carpet over time and carpets are statically charged dust magnets.
 
I have a rubber mat under the power supply area now
I'd not put the computer on a carpet as thats the worst spot possible to put it. At least get a plastic mat for it or something.

The PSU fan should always be facing downward unless you have a PSU that benefits from it being upward (ie a hybrid PSU where the fan doesn't turn on except under heavy load, heat is normally released by natural convection). This way the fan is always taking in its own source of cool air. And that case has a nice dust filter for the PSU at the bottom too.
I have a rubber mat underneath my computer now will that help?
 
Put your case on a stand.
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https://www.amazon.com/VIVO-Computer-ATX-Case-Adjustable-CART-PC01/dp/B074P76TBW