Wildfire Renters & Price Gouging in LA: Your Rights Under Penal Code §396

Wildfire seasons in Los Angeles do more than threaten homes; they tighten an already brutal rental market. When thousands of households lose housing at once, demand for the surviving units spikes and some landlords and listing agents try to cash in. California law anticipates exactly this. During a declared emergency, Penal Code §396 makes it a crime to jack up rents and other prices beyond a set limit. This guide explains how those caps work, what changed after the January 2025 Palisades and Eaton fires, what your rights are if you were displaced, the basics of renters insurance, and exactly where to report gouging.

This is educational information, not legal advice. It covers California state law, the City of Los Angeles, and unincorporated Los Angeles County separately, because the rules layer differently depending on where your unit sits. Always confirm time-sensitive figures against the official links below.

What Penal Code §396 actually caps

California's anti-price-gouging statute switches on automatically once the President, the Governor, or a city or county executive declares a state of emergency. From that moment, it is illegal to raise the price of many essential goods and services by more than a fixed amount. For rental housing, the key numbers are:

• 10% maximum increase on the price of housing that was already on the rental market before the emergency was declared, compared with the price charged (or last advertised) immediately beforehand.
• For a unit not previously rented, the price generally cannot exceed 160% of the fair market rent set by HUD, and there are limits tied to the owner's cost.
• The cap applies even if a desperate applicant offers to pay more. A landlord cannot accept above-cap rent just because a tenant volunteered it.

The protections also reach hotel and motel rates, and the law separately covers evictions: a landlord generally cannot evict a tenant and then re-rent the same unit at a rate the evicted tenant would have been protected from. Violating §396 is a misdemeanor punishable by up to a year in jail and a fine, and it can also trigger civil penalties. You can read the statute in full on the state's site at leginfo.legislature.ca.gov, and the Attorney General's plain-language explainer at oag.ca.gov.

How long do the protections last? (The 2025 fires and 2026 status)

By default, §396 protections run for 30 days after an emergency declaration, and for 180 days for repair, reconstruction, and cleanup services. Critically, those windows are not fixed ceilings. State and local officials can and routinely do extend them by additional order.

That is exactly what happened after the January 2025 Los Angeles fires. Following the Palisades and Eaton fires, the Governor's emergency proclamation triggered §396, and the rental-housing and other price gouging protections for the affected LA County areas have been repeatedly extended, carrying into 2026. These protections have not quietly lapsed. As recently as July 2026, the Attorney General's office was still actively prosecuting fire-related gouging: in one Eaton Fire case, a real estate agent who raised a rental price by 38% after the Governor's emergency order was sentenced to probation, community service, and a $20,000 payment to disaster relief (see the AG's press release at oag.ca.gov/news).

Because these deadlines are extended by successive orders, the single most important thing you can do is check the current declaration status before assuming a rent increase is legal or illegal. Do not rely on a "30 days and done" assumption. Confirm the live status through the Governor's newsroom at gov.ca.gov/newsroom and the Attorney General at oag.ca.gov. If a landlord raised your rent above 10% after a fire declaration and the protections were still in effect for your area, that increase may be unlawful even if it happened many months later.

Your rights as a renter after displacement

If fire, smoke, or an evacuation order made your unit uninhabitable, several protections stack on top of §396:

• Rent abatement. Under the implied warranty of habitability and California Civil Code §§1941–1942, you generally do not owe full rent for a unit that is uninhabitable or destroyed. If the unit is gone entirely, the lease may be terminated by operation of law and your rent obligation ends.
• Security deposit return. Your landlord must return your deposit, with an itemized statement, within 21 days of you moving out (Civil Code §1950.5). Fire damage that was not your fault cannot be charged against your deposit. See our security deposit guide.
• Protection while you house-hunt. The §396 cap follows you into the search for a replacement unit, so listings you apply to in the affected area are also subject to the 10% limit.
• No illegal lockouts. A landlord cannot use a fire, an evacuation, or "the building is closed" as an excuse to change your locks or remove your belongings without a court order. Utility shutoffs and self-help evictions remain illegal.
• Relocation assistance. In the City of LA, certain no-fault displacements under the Rent Stabilization Ordinance can trigger landlord-paid relocation payments set by the housing department. See our relocation assistance guide and confirm eligibility with LAHD.

For unsafe conditions or code issues, LA City renters can call 311 or the LA Housing Department; unincorporated LA County renters can contact the Department of Consumer and Business Affairs. Our habitability and repairs guide walks through the repair-and-deduct process.

Renters insurance basics

Renters insurance (an HO-4 policy) is one of the cheapest forms of protection a tenant can buy, and after a wildfire it is often the difference between a hard month and financial ruin. A standard policy typically includes:

• Personal property coverage for your belongings damaged or destroyed by fire and smoke. Choose replacement cost coverage over actual cash value if you can; ACV subtracts depreciation and pays far less.
• Loss of use / Additional Living Expenses (ALE), which reimburses the extra cost of temporary housing, meals, and other expenses while you are displaced. This is the coverage that pays for a hotel or short-term rental after an evacuation.
• Liability coverage if you are found responsible for damage or injury.

A few practical tips: photograph or video every room now and store the file in the cloud, keep receipts for major items, and read your policy's wildfire and smoke provisions, since coverage details vary. If you were already displaced, file your ALE claim promptly and keep every receipt. The California Department of Insurance has free consumer guides and a hotline at insurance.ca.gov or (800) 927-4357. Note that renters insurance covers your possessions and living expenses; the building itself is the landlord's responsibility.

Where to report price gouging

If you believe you were charged an illegal rent or price during a declared emergency, report it. Complaints drive real prosecutions, as the Eaton Fire case shows. Keep evidence: the old and new rent, the listing, texts or emails, and dates.

• California Attorney General: file online at oag.ca.gov/report or call the public inquiry line at (800) 952-5225.
• Los Angeles County District Attorney: the DA's office prosecutes local price gouging; report at da.lacounty.gov.
• LA City residents: contact the LA Housing Department at housing.lacity.gov or call 311 for rent and habitability issues.
• Unincorporated LA County residents: contact the Department of Consumer and Business Affairs at dcba.lacounty.gov or (800) 593-8222.

Frequently asked questions

Is the 10% price gouging cap the same as the annual rent cap?

No. The §396 emergency cap and California's annual rent cap are two different rules. Under the Tenant Protection Act (AB 1482), most rental housing older than 15 years cannot see rent raised more than 10% total, or 5% plus the local cost-of-living change, whichever is lower, over 12 months. During a declared emergency, the §396 cap can apply on top of that. See our AB 1482 rent cap guide for the current allowable percentages.

My landlord raised my rent months after the fire. Is that still illegal?

It depends on whether the §396 protections were still in effect for your area on the date of the increase. Because the LA fire protections were extended into 2026, an above-cap increase long after the fire can still be unlawful. Check the current declaration status at gov.ca.gov and report it if the protections still applied.

Do these protections apply to a brand-new listing or an ADU?

Price gouging rules can apply to units offered for rent during the emergency, including units not previously rented, though the calculation differs. Whether a specific accessory dwelling unit is also covered by AB 1482 is fact-specific and depends on when it was built. Treat it as "it depends," and verify with the AG's guidance and LAHD.

Can I break my lease if my unit is uninhabitable after a fire?

If the unit is destroyed or genuinely uninhabitable, your lease may terminate by operation of law and rent stops accruing. Document the condition thoroughly and notify your landlord in writing. Do not simply stop paying and move without evidence, since the facts matter if there is a later dispute.

Does renters insurance pay for a hotel after an evacuation?

Usually yes, through the Loss of Use / Additional Living Expenses portion of your policy, which reimburses temporary housing and extra costs while you cannot live in your unit. Coverage limits and time periods vary, so read your policy and keep every receipt. The California Department of Insurance can help if a claim is wrongly denied.

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