# Mom Sells $1.4M House for 5% Treasury Interest

> 73-year-old mother sells home to rent apartment on 5% Treasury interest.
- Title: Mom Sells $1.4M House for 5% Treasury Interest · 24/7 Wall St.
- Summary: 73-year-old mother sells home to rent apartment on 5% Treasury interest. A 73-year-old mother can sell her $1.4 million paid-off home, rent an apartment, and…
- Keywords: mom, 1.4 million, house, rent, apartment, 5% treasury interest, treasury bonds, taxes, social security, Sells, Treasury, Interest
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/10/22/mom-is-73-and-wants-to-sell-the-1-4-million-house-rent-an-apartment-and-live-on-5-treasury-interest-is-it-a-crazy-idea
- Author: David Beren
- Published: 2026-10-22T16:41:30+00:00
- Read time: 1 min
- Topics: mom, 73, 1.4 million, house, rent, apartment, 5% treasury interest, treasury bonds, taxes, social security
## Selling Plan
A 73-year-old mother wants to sell her $1.4 million paid-off house, rent an apartment, and live on 5% Treasury interest without touching principal.

> A 73-year-old mother has a paid-off house worth $1.4 million. She wants to sell it, rent a comfortable apartment, and live on Treasury interest.
## Treasury Interest Math
At 5%, Treasury interest earns $70,000 annually or $5,833 monthly without touching principal.

> At 5%, that’s $70,000 a year, or about $5,833 a month, without touching the principal.
## Treasury Yield Reality
Treasury bills pay less than 5% today; 5-year notes yield 4.95%, 7-year 5.03%, and 10-year 5.13%.

> The 5-year note yields 4.95%, the 7-year 5.03%, and the 10-year 5.13%.
## Tax Considerations
Single filers can exclude up to $250,000 of gain under 26 U.S.C. § 121(b)(1) if owned for 2+ years.

> A single filer can exclude up to $250,000 of gain under 26 U.S.C. § 121(b)(1), as long as she owned the home and lived in it for 2 years or more of the last five.
## Rent vs. Interest
Rent rises 4% annually; at $4,000/month, it would reach $5,750/month in a decade.

> If her rent rises at that rate, it would rise from $4,000 to roughly $5,750 a month in a decade.
## Social Security
Social Security provides $2,005 monthly for aged widows, covering food and healthcare.

> Social Security is her built-in inflation protection. Benefits rise 3.6% in 2027, and the average aged widow(er) will receive about $2,005 a month.
## Inflation-Protected Treasuries
10-year TIPS yield 2.76% above inflation, or $38,640 annually on $1.4 million.

> The 10-year TIPS yields 2.76% above inflation, or about $38,640 a year in today’s dollars on $1. 4 million.
## Two Funding Paths
Path 1: Treasury ladder plus TIPS locks in rates and keeps cash flowing yearly. Path 2: Short-term bills earn under 5% but risk falling rates.

> Path 1: A Treasury ladder plus TIPS. Path 2: All short-term bills.
## What Mom Should Do
Run rent test first: rent should take no more than 50% of Treasury interest. Know cost basis before listing to avoid tax issues.

> Run the rent test first. Starting rent should take roughly half of her Treasury interest or less.
## Key takeaway

A 73-year-old mother can sell her $1.4 million paid-off home, rent an apartment, and live on 5% Treasury interest without touching principal.