Facts of the Case

The City of San Jose enacted a rent-control ordinance in 1979 in an attempt to alleviate the problem of skyrocketing rent prices due to the growing shortage of and the increasing demand for housing. Part of the ordinance allowed a Mediating Hearing Officer to consider as one factor "hardship to a tenant" when evaluating rent increases imposed by landlords.

Question

Did the ordinance violate the Fourteenth Amendment's Due Process Clause?

Conclusion

No. The Court held that the ordinance was rationally crafted to protect the financial investments of landlords while simultaneously preventing tenants from becoming victims of burdensome rent increases. The City argued the ordinance satisfied a need. This view was uncontested and, according to Justice Rehnquist, represented a "legitimate and rational" means to protect "consumer welfare."