Did the Los Angeles County 10 Percent Rent Cap Expire in 2026, and What Applies Now?

Published July 15, 2026

LA County let its wildfire-era 10 percent rent cap lapse on May 28, 2026. Penal Code 396 still applies only during a declared emergency.

The Los Angeles County Board of Supervisors let its wildfire-related price gouging protections expire on May 28, 2026, after a motion to extend them another 30 days failed on May 19, with only two of the five supervisors in support. That county-specific 10 percent cap on rent increases, tied to the January 2025 Palisades and Eaton fire emergency, is no longer in force countywide as of this writing. California Penal Code section 396 itself still exists and still applies automatically any time a state or local emergency is declared, so owners should not read the expiration as price gouging law being gone for good.

What actually happened, and when

Penal Code section 396 is a standing state law. During a declared state of emergency, it bars landlords from raising rental housing prices more than 10 percent above what was charged before the emergency, with an exception for cost increases directly tied to labor, materials, or repairs. It switches on when an emergency is declared, its rental housing protections generally run for an initial period of about 30 days, and the Legislature, the Governor, or a local governing body can extend them, which is exactly what LA County did month after month.

After the January 2025 wildfires, Los Angeles County repeatedly extended its own emergency declaration and, with it, the countywide 10 percent price gouging cap under Penal Code 396(e) and County Code chapter 8.09, well past the initial fire response. Those protections also barred owners from listing a previously unlisted unit at more than 160 percent of HUD's fair market rent for the area. The Board of Supervisors kept renewing the declaration in monthly increments through the spring of 2026, most recently through May 28. On May 19, 2026, Supervisor Lindsey Horvath's motion for another 30 day extension failed. Only Supervisor Hilda Solis joined her in support, while Supervisors Barger, Hahn, and Mitchell abstained, and the county-specific protections lapsed at the end of that declaration period.

What that means for a South Bay owner right now

With the county's wildfire emergency declaration no longer extended, the countywide 10 percent price gouging cap tied to that emergency is not currently in effect in El Segundo, Manhattan Beach, or the rest of the South Bay. That does not mean rent increases are unrestricted. AB 1482's statewide cap of 5 percent plus CPI, or 10 percent, whichever is lower, still applies to any covered unit that is not new construction, and any lease terms, notice periods, and local ordinances your property is otherwise subject to remain fully in force. Penal Code 396 also snaps back on immediately if the county, another local jurisdiction, or the Governor declares a new emergency covering your area, whether for fire, earthquake, or another disaster.

Owners who were relying on HUD's fair market rent figures as a ceiling for a newly listed unit under the county's now-expired rule should note that FY 2026 fair market rents for the Los Angeles-Long Beach-Glendale area still exist and matter for other programs, including Section 8 voucher payment standards, even though the 160 percent price gouging ceiling tied to them is not currently active countywide.

What this means for you

Do not assume the 10 percent cap is permanently retired. It is dormant, not repealed, and it reactivates the moment a new emergency is declared for your area. Keep any rent increase you plan within AB 1482's statewide cap if the unit is covered, document your reasoning either way, and check the county's emergency declarations before a large increase if there has been a recent fire, flood, or other disaster nearby. If you would rather not monitor emergency declarations and rent cap triggers yourself, that is what we do for our owners.

This is general information, not legal or tax advice. Confirm with a licensed professional before you act.

Sources

1. California Penal Code section 396 (leginfo.legislature.ca.gov)
2. LA County Department of Consumer and Business Affairs, Price Gouging
3. MyNewsLA, LA County Declines to Extend Price Gouging Protections on Rental Housing, May 19, 2026
4. The Real Deal, LA County's post-fire rent gouging ban goes up in smoke, May 20, 2026
5. HUD User, FY 2026 Fair Market Rents
6. California Civil Code section 1947.12, AB 1482 rent cap

Last verified: July 2026.

Topics: compliance, price gouging, Penal Code 396, rent increases, Los Angeles County, fair market rent

Back to the Schofield Properties blog

Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.