Here's how I was able to do it.
The MATLAB polar plot (if you look at the Handle Graphics options available) does not have anything like xlim or ylim. However, I realized that the first thing plotted sets the range, so I was able to plot a function with radius range [-.5 .5] on a [-1 1] plot as follows:
theta = linspace(0,2*pi,100);
r = sin(2*theta) .* cos(2*theta);
r_max = 1;
h_fake = polar(theta,r_max*ones(size(theta)));
hold on;
h = polar(theta, r);
set(h_fake, 'Visible', 'Off');
That doesn't look very good and hopefully there's a better way to do it, but it works.