California Price Gouging Protections in 2026: What’s Still Active and What Property Owners Need to Know

There has been some confusion in the rental housing community about whether California’s emergency price gouging protections have ended. The short answer for most Southern California property owners is no — important protections remain in effect well into 2026, and Los Angeles County in particular continues to enforce restrictions tied to recent wildfires and storms.

For property owners, this means the 10% cap on rent increases under California Penal Code §396 still applies in much of the state. Understanding which protections are active, where, and through what date is essential before adjusting rent or making any pricing decision in 2026.

Table of Contents

• What California’s Price Gouging Statute Actually Does
• Which Protections Are Still Active in 2026
• How Price Gouging Rules Apply to Rental Housing
• Penalties for Violations
• What This Means for Property Owners Right Now
• What Happens When Protections Eventually Expire
• The Role of Property Management
• FAQ’s

What California’s Price Gouging Statute Actually Does

California Penal Code §396 prohibits sellers — including landlords — from increasing the price of essential goods, services, hotels, or housing by more than 10% during a declared state of emergency. The statute is intended to prevent profiteering on consumers and tenants who are already dealing with the disruption of a disaster.

The default duration of these protections is 30 days from the date of the emergency proclamation. However, the Governor or local officials can extend protections by additional 30-day increments — and they frequently do, particularly for housing-related provisions. Some categories, such as repair and reconstruction services from contractors, carry an automatic 180-day protection window.

The statute applies statewide whenever an emergency is declared, but the geographic scope of any given protection depends on which counties are named in the proclamation.

Which Protections Are Still Active in 2026

As of May 2026, several active emergency declarations continue to trigger price gouging protections that affect Southern California rental housing:

Southern California Storms (declared late December 2025): Protections remain in effect for Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Shasta counties through June 22, 2026. This is the most broadly applicable active protection for South Bay and greater Los Angeles owners.

Pack Fire (Mono County): Protections remain in effect through June 7, 2026.

Los Angeles County Wildfire Extensions: On January 13, 2026, the Los Angeles County Board of Supervisors voted unanimously to extend local emergency price restrictions tied to the January 2025 wildfires. The Board passed a further extension on March 19, 2026. These local extensions continue to limit rent increases and restrict certain evictions in unincorporated Los Angeles County and have been layered on top of state-level protections.

For the most current status of any specific area, the California Governor’s Office of Emergency Services (Cal OES) maintains a regularly updated list of active declared emergencies and the price gouging protections tied to them. Owners with property in multiple jurisdictions should confirm status by county before adjusting rent.

How Price Gouging Rules Apply to Rental Housing

For rental property, Penal Code §396 effectively caps any rent increase at 10% above the rent in effect on the date the emergency was declared. This applies to:

• New leases offered after the emergency declaration
• Rent increases on existing tenancies
• Re-rentals of vacant units after a tenant move-out

Importantly, the cap is calculated against the rent on the day of the proclamation — not the previously highest rent the unit has ever charged, and not the market rate. If a unit was renting for $2,500 on the day of declaration, the maximum advertised or charged rent during the protection period is $2,750.

These protections layer on top of — not in place of — existing rent regulations. Properties subject to the Los Angeles Rent Stabilization Ordinance (RSO), AB 1482, or other local rent control rules must continue to follow whichever cap is more restrictive. In most cases, that means the local rent control limit will still control even when emergency protections are also active.

Penalties for Violations

Violations of Penal Code §396 are not minor. The statute provides for parallel criminal and civil exposure:

• Criminal penalties of up to one year in county jail and/or a fine of up to $10,000
• Civil penalties of up to $2,500 per violation
• Injunctive relief
• Mandatory restitution to affected tenants
• Reputational and licensure consequences for repeat violators

Tenants and consumers can report suspected violations to the California Attorney General’s Office or, in Los Angeles County, to the Department of Consumer and Business Affairs (DCBA). Both agencies have actively pursued enforcement actions in the wake of recent emergencies.

What This Means for Property Owners Right Now

For owners in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Shasta counties, the practical guidance for May and June of 2026 is straightforward:

Do not raise rent more than 10% above the rate in effect on the date of declaration. For the Southern California Storms emergency, that reference date is the late-December 2025 proclamation. For unincorporated LA County properties affected by the wildfire extensions, additional local rules apply.

Confirm the current rent control framework for each unit. Many South Bay and greater LA properties are also subject to LARSO, AB 1482, or county-level rent stabilization. The lower of the two applicable caps controls.

Document the rent in effect on the declaration date. Keep a written record of base rent for each unit as of late December 2025 so that any increase can be clearly justified. This is your protection if an increase is later questioned.

Verify status before any rent increase notice. Even brief lapses or extensions can change the applicable rules. Cal OES maintains the authoritative list of active protections.

Plan, but do not act prematurely. It is appropriate to begin planning for how rents will be adjusted once protections eventually lift. It is not appropriate to issue notices that will only take effect after expected expiration without accounting for the possibility of extension. Protections in 2025 and 2026 have been extended repeatedly.

What Happens When Protections Eventually Expire

When an emergency declaration expires and is not renewed, the 10% cap under Penal Code §396 lifts. However, that does not return rental pricing to a regulation-free environment. Owners are still subject to:

• The Los Angeles Rent Stabilization Ordinance (LARSO), where applicable, including the 3% interim cap in effect through June 30, 2027
• AB 1482’s 5% plus CPI cap (with a maximum annual increase of 10% for covered properties) is scheduled to remain in effect through January 1, 2030, unless extended or modified by future legislation.
• Local rent stabilization ordinances in cities such as Long Beach, Santa Monica, and Los Angeles County’s unincorporated areas
• Just Cause Eviction protections under both state law and local ordinances

In practical terms, the end of emergency price gouging protections does not mean the end of rent regulation for most Southern California rental property. It simply removes one of several overlapping caps.

The Role of Property Management

Tracking which protections apply to which property, in which jurisdiction, on which date, is one of the more administratively demanding parts of multifamily ownership in California right now. A professional property management company should be:

• Monitoring state and county emergency proclamations and extensions
• Maintaining a record of base rent as of each relevant declaration date
• Coordinating compliant rent increase notices that account for layered caps
• Documenting decisions and justifications in case of audit or tenant dispute
• Communicating clearly with owners about what is and is not legally available

At Jamico Properties, we treat compliance with overlapping rent regulations as a non-negotiable part of how we manage properties for our owners. The cost of getting it wrong — civil penalties, criminal exposure, and lasting damage to an owner’s standing with regulators and tenants — is far higher than the cost of doing it carefully.

If you own multifamily rental property in the South Bay or greater Los Angeles and want to confirm what rent adjustments are currently legal for your portfolio, request a free rental analysis or contact us directly.

This article is for informational purposes only and is not legal advice. Property owners should consult an attorney for guidance specific to their property and jurisdiction. Active emergency declarations and associated price gouging protections can change with little notice — verify the current status before adjusting rent or making pricing decisions.

FAQ’s