Legis
Housing
SB 1365, Chapter 1028, Statutes of 2026 · Wednesday 30 September 2026

Price gouging

SB 1365 broadens emergency rent-gouging protections to all rental housing and clarifies allowable rent for newly daily-priced units.

During declared emergencies, landlords generally cannot raise rents more than 10%. The law closes a lease-length gap and sets rules for certain units newly offered at daily rates after an emergency begins.

What the law does ​

  • Covers all rental housing, including rentals with an initial lease longer than one year.
  • Makes cost-based exceptions to emergency price-gouging limits defenses that a charged seller, contractor, hotel operator, or landlord must prove.
  • Lets a landlord defend an above-cap rent increase for qualifying repairs or additions only when costs were incurred within the prior year and the unit was then on the rental market or was intended to be rented within six months of the work.
  • Caps the daily rent for housing newly offered at a daily rate after an emergency at one-thirtieth of 160% of the federal fair-market rent, plus up to 5% if furnished.

Who it affects ​

  • Landlords and operators of rental housing, mobilehome spaces, and campgrounds.
  • Tenants and people seeking housing during declared state or local emergencies.
  • Businesses, contractors, hotels, and motels accused of emergency price gouging.

Context ​

Price-gouging violations remain misdemeanors and may also constitute unlawful business practices.