We show that a precise assessment of free energy estimates in Monte Carlo simulations of lattice models is possible by using cluster variation approximations in conjunction with the local states approximations proposed by Meirovitch. The local states method (LSM) utilizes entropy expressions which recently have been shown to correspond to a converging sequence of upper bounds on the thermodynamic limit entropy density (i.e., entropy per lattice site), whereas the cluster variation method (CVM) supplies formulas that in some cases have been proven to be, and in other cases are believed to be, lower bounds. We have investigated CVM-LSM combinations numerically in Monte Carlo simulations of the two-dimensional Ising model and the two-dimensional five-states ferromagnetic Ports model. Even in the critical region the combination of upper and lower bounds enables an accurate and reliable estimation of the free energy from data of a single run. CVM entropy approximations are therefore useful in Monte Carlo simulation studies and in establishing the reliability of results from local states methods.