UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q


[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

                 For the Quarterly Period Ended March 31, 1998

                                      or

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
    Exchange Act of 1934

For the transition period from                    to                   


                           Commission File #0-17593


                     Inland Monthly Income Fund II, L.P. 
            (Exact name of registrant as specified in its charter)



         Delaware                                     #36-3587209
  (State or other jurisdiction      (I.R.S. Employer Identification Number) 
of incorporation or organization)



       2901 Butterfield Road, Oak Brook, Illinois         60523
        (Address of principal executive office)         (Zip Code)


    Registrant's telephone number, including area code:  630-218-8000


                                   N/A                        
                (Former name, former address and former fiscal
                      year, if changed since last report)


Indicate by  check  mark  whether  the  registrant  (1)  has  filed all reports
required to be filed by Section 13  or  15(d) of the Securities Exchange Act of
1934 during the  preceding  12  months  (or  for  such  shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.  Yes X  No   




                                      -1-



                                  PART I


Item 1.  Financial Statements


                    INLAND MONTHLY INCOME FUND II, L.P.
                          (a limited partnership)

                              Balance Sheets

                   March 31, 1998 and December 31, 1997
                                (unaudited)


                                  Assets
                                  ------
 
                                                       1998          1997
                                                       ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $ 1,090,910     1,151,954
  Accounts and rents receivable...................     160,503       170,804
  Current portion of deferred rent receivable
    (Note 2)......................................         427         1,103
  Other assets....................................         911         2,061
                                                   ------------  ------------
Total current assets..............................   1,252,751     1,325,922
                                                   ------------  ------------
Investment properties (including acquisition fees
  paid to Affiliates of $1,430,682)(Notes 1 and 3):
    Land..........................................   3,998,149     3,998,149
    Buildings and improvements....................  13,814,185    13,814,185
                                                   ------------  ------------
                                                    17,812,334    17,812,334
      Less accumulated depreciation...............   3,725,762     3,617,865
                                                   ------------  ------------
Net investment properties.........................  14,086,572    14,194,469
                                                   ------------  ------------
Other assets:
  Deferred leasing fees to Affiliates (net of
    accumulated amortization of $129,436 and
    $124,912 at March 31, 1998 and December 31,
    1997, respectively)(Notes 1 and 3)............      98,296       102,820
  Deferred rent receivable, less current portion
    (Note 2)......................................     338,406       349,868
                                                   ------------  ------------

Total other assets................................     436,702       452,688
                                                   ------------  ------------
Total assets...................................... $15,776,025    15,973,079
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -2-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                                Balance Sheets
                                  (continued)

                     March 31, 1998 and December 31, 1997
                                  (unaudited)


                       Liabilities and Partners' Capital
                       ---------------------------------

                                                       1998          1997
                                                       ----          ----
Current liabilities:
  Accounts payable................................ $    15,239         2,708
  Accrued real estate taxes.......................     148,400       188,729
  Distributions payable (Note 4)..................     140,427       140,427
  Due to Affiliates (Note 3)......................      10,187         1,648
  Deposits held for others........................     314,789       384,448
  Other current liabilities.......................      26,925        26,925
                                                   ------------  ------------
Total current liabilities.........................     655,967       744,885

Commission payable to Affiliate (Note 3)..........     132,000       132,000
                                                   ------------  ------------
Total liabilities.................................     787,967       876,885
                                                   ------------  ------------
Partners' capital (Notes 1, 3 and 4):
  General Partner:
    Capital contribution..........................         500           500 
    Cumulative net income.........................      63,195        64,274
                                                   ------------  ------------
                                                        63,695        64,774
  Limited Partners:                                ------------  ------------
    Units of $500. Authorized 80,000 Units,
      50,095.50 Units outstanding (net of
      offering costs of $3,148,734, of which
      $653,165 was paid to Affiliates)............  21,916,510    21,916,510
    Cumulative net income.........................  13,051,862    12,751,226
    Cumulative distributions...................... (20,044,009)  (19,636,316)
                                                   ------------  ------------
                                                    14,924,363    15,031,420
                                                   ------------  ------------
Total Partners' capital...........................  14,988,058    15,096,194
                                                   ------------  ------------
Total liabilities and Partners' capital........... $15,776,025    15,973,079
                                                   ============  ============






                See accompanying notes to financial statements.


                                      -3-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Operations

              For the three months ended March 31, 1998 and 1997
                                  (unaudited)


                                                       1998          1997
                                                       ----          ----
Income:
  Rental income (Notes 1 and 2)................... $   481,675       476,759
  Additional rental income........................      37,443        41,784
  Interest income.................................       9,790         8,367
                                                   ------------  ------------
                                                       528,908       526,910
Expenses:                                          ------------  ------------
  Professional services to Affiliates.............       3,200         3,541
  Professional services to non-affiliates.........      27,250        24,380
  General and administrative expenses to
    Affiliates....................................       8,793         9,352
  General and administrative expenses to
    non-affiliates................................       6,869         8,348
  Property operating expenses to Affiliates.......       8,866         7,535
  Property operating expenses to non-affiliates...      61,952        65,243
  Depreciation....................................     107,897       107,897
  Amortization....................................       4,524         4,523
                                                   ------------  ------------
                                                       229,351       230,819
                                                   ------------  ------------
Net income........................................ $   299,557       296,091
                                                   ============  ============

Net income (loss) allocated to:
  General Partner.................................      (1,079)       (1,079)
  Limited Partners................................     300,636       297,170
                                                   ------------  ------------
Net income........................................ $   299,557       296,091
                                                   ============  ============

Net loss allocated to the one General Partner Unit $    (1,079)       (1,079)
                                                   ============  ============
Net income per Unit, basic and diluted, allocated
  to Limited Partners per weighted average Limited
  Partnership Units of 50,095.50.................. $      6.00          5.93
                                                   ============  ============








                See accompanying notes to financial statements.


                                      -4-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                           Statements of Cash Flows

              For the three months ended March 31, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
                                                       ----          ----
Cash flows from operating activities:
  Net income...................................... $   299,557       296,091
  Adjustments to reconcile net income to
      net cash provided by operating activities:
    Depreciation..................................     107,897       107,897
    Amortization..................................       4,524         4,523
    Deferred rent receivable......................      12,138         8,438
    Changes in assets and liabilities:
      Accounts and rents receivable...............      10,301       (36,510)
      Other assets................................       1,150           344
      Accounts payable............................      12,531        19,335
      Accrued real estate taxes...................     (40,329)      (39,312)
      Due to Affiliates...........................       8,539        17,382
      Other current liabilities...................        -           80,712
                                                   ------------  ------------
Net cash provided by operating activities.........     416,308       458,900
                                                   ------------  ------------
Cash flows from financing activities:
  Deposits held for others........................     (69,659)      (35,467)
  Cash distributions..............................    (407,693)     (407,309)
                                                   ------------  ------------
Net cash used in financing activities.............    (477,352)     (442,776)
Net increase (decrease) in cash and cash           ------------  ------------
  equivalents.....................................     (61,044)       16,124
Cash and cash equivalents at beginning of period..   1,151,954     1,043,462
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $ 1,090,910     1,059,586
                                                   ============  ============















                See accompanying notes to financial statements.


                                      -5-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements

                                March 31, 1998
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1997, which are
included  in  the  Partnership's  1997   Annual  Report,  as  certain  footnote
disclosures which would substantially duplicate those contained in such audited
financial statements have been omitted from this Report.

(1) Organization and Basis of Accounting

The Registrant, Inland Monthly  Income  Fund  II, L.P. (the "Partnership"), was
formed on June  20,  1988  pursuant  to  the  Delaware  Revised Uniform Limited
Partnership Act, to  invest  in  improved  residential,  retail, industrial and
other income producing properties. On August 4, 1988, the Partnership commenced
an Offering of 50,000 (subject to increase to 80,000) Limited Partnership Units
pursuant to a  Registration  under  the  Securities  Act  of 1933. The Offering
terminated on August 4, 1990, with  total  sales of 50,647.14 Units at $500 per
Unit, resulting in gross  offering  proceeds  of $25,323,569, not including the
General Partner's contribution for $500. All of the holders of these Units have
been admitted to the Partnership.  Inland Real Estate Investment Corporation is
the General Partner.  The  Limited  Partners  of  the  Partnership share in the
benefits  of  ownership  of  the  Partnership's  real  property  investments in
proportion to the  number  of  Units  held.  The Partnership repurchased 551.64
Units for $260,285 from  various  Limited  Partners through the Unit Repurchase
Program. There are no funds remaining  for the repurchase of Units through this
program.

The preparation of financial  statements  in conformity with generally accepted
accounting principles requires  management  to  make  estimates and assumptions
that affect the reported amounts  of  assets  and liabilities and disclosure of
contingent assets and liabilities at  the  date of the financial statements and
the reported amounts of  revenues  and  expenses  during the reporting periods.
Actual results could differ from those estimates.

Offering costs have been offset against the Limited Partners' capital accounts.

Statement of Financial Accounting Standards  No.  121 ("SFAS 121") requires the
Partnership to record  an  impairment  loss  on  its  property  to  be held for
investment whenever  its  carrying  value  cannot  be  fully  recovered through
estimated undiscounted future cash flows  from  their operations and sale.  The
amount of the impairment loss to  be recognized would be the difference between
the property's carrying value and the  property's  estimated fair value.  As of
March 31, 1998, the Partnership has not recognized any such impairment.







                                      -6-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                                March 31, 1998
                                  (unaudited)


Depreciation expense is computed using the straight-line method.  Buildings and
improvements are based upon estimated  useful  lives  of  30 to 40 years, while
furniture and fixtures are based upon estimated  useful lives of 5 to 12 years.
Maintenance  and  repair  expenses  are  charged  to  operations  as  incurred.
Significant improvements are capitalized  and  depreciated over their estimated
useful lives.

Deferred leasing fees are amortized on  a  straight-line basis over the term of
the related lease.

Rental income is recognized  on  a  straight-line  basis  over the term of each
lease.  The difference between rental  income earned on the straight-line basis
and the cash rent due under the  provisions of the lease agreements is recorded
as deferred rent receivable.

The Partnership  considers  all  highly  liquid  investments  purchased  with a
maturity of three months or  less  to  be  cash  equivalents and are carried at
cost, which approximates market.    For  the  periods  ended March 31, 1998 and
December 31, 1997,  included  in  cash  and  cash  equivalents is approximately
$302,600 and $372,200, respectively, held in an unrestricted escrow account for
the payment of real estate taxes for Colonial Manor Living Center.

Statement of Financial Accounting  Standards  No.  128 "Earnings per Share" was
adopted by the Partnership for the  year  ended  December 31, 1997 and has been
applied to all prior  earnings  periods  presented in the financial statements.
The Partnership has no dilutive securities.

No provision for Federal income taxes  has  been made as the liability for such
taxes is that of the Partners rather than the Partnership.

In  the  opinion  of  management,  the  financial  statements  contain  all the
adjustments necessary, which  are  of  a  normal  recurring  nature, to present
fairly the  financial  position  and  results  of  operations  for  the periods
presented herein.  Results of interim periods are not necessarily indicative of
the results to be expected for the year.












                                      -7-



                      INLAND MONTHLY INCOME FUND II, L.P.
                            (a limited partnership)

                         Notes to Financial Statements
                                  (continued)

                                March 31, 1998
                                  (unaudited)


(2) Deferred Rent Receivable

Certain tenant leases contain provisions  providing for stepped rent increases.
Generally accepted accounting principles require that rental income be recorded
for the period of occupancy  using  the  straight-line basis.  The accompanying
financial statements include  decreases  of  $12,138  and  $8,438 for the three
months ended March 31, 1998  and  1997,  respectively, of rental income for the
period of occupancy for  which  stepped  rent  increases apply and $338,833 and
$350,971 in related deferred rent receivable  as of March 31, 1998 and December
31, 1997, respectively.  These amounts will  be collected over the terms of the
related leases as scheduled rent payments are made. Deferred rent receivable of
$3,719 was written off against  rental  income  for the year ended December 31,
1997, due to two tenants vacating at Euro-Fresh Market Plaza.


(3) Transactions with Affiliates

The General  Partner  and  its  Affiliates  are  entitled  to reimbursement for
salaries and expenses of employees  of  the  General Partner and its Affiliates
relating to the administration of the  Partnership.  Such costs are included in
professional services and general and administrative expenses to Affiliates, of
which $10,187 and $1,648 was unpaid as of March 31, 1998 and December 31, 1997,
respectively.

An Affiliate of the General  Partner  earned Property Management Fees of $8,866
and $7,535 for the three months ended March 31, 1998 and 1997, respectively, in
connection with managing the Partnership's  properties.  Such fees are included
in property operating expenses to Affiliates, all of which have been paid.

In connection with the  sale  of  The  Wholesale  Club  on January 8, 1991, the
Partnership recorded $132,000 of  sales  commission  payable to an Affiliate of
the General Partner.    Such  commission  has  been  deferred until the Limited
Partners receive their  Original  Capital  plus  a  return  as specified in the
Partnership Agreement.


(4)  Subsequent Events

During April 1998,  the  Partnership  paid  a  distribution  of $140,427 to the
Limited Partners.







                                      -8-



Item 2.  Management's  Discussion  and  Analysis  of  Financial  Condition  and
         Results of Operations

Certain statements in this  "Management's  Discussion and Analysis of Financial
Condition and Results of Operations" and  elsewhere in this quarterly report on
Form 10-Q constitute of "forward-looking  statements" within the meaning of the
Federal Private Securities  Litigation  Reform  Act  of  1995.   These forward-
looking statements involve  known  and  unknown  risks, uncertainties and other
factors which  may  cause  the  Partnership's  actual  results,  performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied  by  these forward-looking statements.  These
factors include,  among  other  things,  federal,  state  or local regulations;
adverse changes in general economic  or local conditions; inability of borrower
to meet financial  obligations;  uninsured  losses;  and potential conflicts of
interest between the  Partnership  and  its  Affiliates,  including the General
Partner.

Liquidity and Capital Resources

On August 4, 1988, the Partnership  commenced an Offering of 50,000 (subject to
increase to  80,000)  Limited  Partnership  Units  pursuant  to  a Registration
Statement  on  Form  S-11  under  the  Securities  Act  of  1933.  The Offering
terminated on August 4, 1990, with  total  sales of 50,647.14 Units at $500 per
Unit, resulting in gross  offering  proceeds  of $25,323,569, not including the
General Partner's contribution of $500. All  of the holders of these Units have
been admitted to the Partnership.  The Partnership has acquired five properties
utilizing $21,224,542 of capital  proceeds  collected.  On January 8, 1991, the
Partnership sold one of its properties,  The  Wholesale  Club.  As of March 31,
1998, cumulative  distributions  to  Limited  Partners  totaled $20,044,009, of
which $4,395,565 represents proceeds from  the  sale  of The Wholesale Club and
$15,648,444  represents  distributable  cash  flow  from  the  properties.  The
Partnership repurchased 551.64 Units for $260,285 from various Limited Partners
through the Unit  Repurchase  Program.  There  are  no  funds remaining for the
repurchase of Units through this program.

As of  March  31,  1998,  the  Partnership  had  cash  and  cash equivalents of
$1,090,910 which includes approximately $302,600 held in an unrestricted escrow
account for the payment of real  estate taxes for Colonial Manor Living Center.
The Partnership intends to use  such  remaining funds for distributions and for
working capital requirements.

The properties owned by the Partnership  are  generating cash flow in excess of
the 8% annualized  distributions  to  the  Limited  Partners (paid monthly), in
addition to covering all  the  operating  expenses  of  the Partnership.  As of
March 31, 1998, the Partnership  has  made cumulative distributions of $253,868
in addition to the 8%  annualized  return  to  the Limited Partners from excess
cash flow. To the extent that the cash flow from the properties is insufficient
to meet the Partnership's  needs,  the  Partnership  may  rely on advances from
Affiliates of the General Partner, other  short-term financing, or may sell one
or more of the properties.







                                      -9-



Results of Operations

At March 31, 1998, the Partnership owns  four operating properties.  Two of the
Partnership's four operating properties,  Scandinavian  Health Spa and Colonial
Manor Living Center, are leased  on  a  "triple-net" basis which means that all
expenses of the property are passed through  to  the tenant.  The leases of the
other two properties owned  by  the  Partnership,  K mart and Euro-Fresh Market
Plaza, provide that  the  Partnership  be  responsible  for  maintenance of the
structure and the parking lot  and  the  tenants  are required to reimburse the
Partnership for  portions  of  insurance,  real  estate  taxes  and common area
maintenance.  The Partnership sold  one  of its properties, The Wholesale Club,
on January 8, 1991.

Rental income increased for the three  months ended March 31, 1998, as compared
to the three months ended March  31,  1997,  due to an increase in occupancy at
Euro-Fresh Market Plaza.  As of March 31, 1998, there were two vacant spaces at
Euro-Fresh Market Plaza for 2,746 square feet.

Professional services to non-affiliates  increased  for  the three months ended
March 31, 1998, as compared to the three months ended March 31, 1997, due to an
increase in accounting fees.

General and administrative expenses  to  non-affiliates decreased for the three
months ended March 31, 1998, as  compared  to  the three months ended March 31,
1997, due primarily to a decrease in printing expenses.

Property operating expenses to  non-affiliates  decreased  for the three months
ended March 31, 1998, as compared to the three months ended March 31, 1997, due
to decreases in repair and maintenance and other professional services at Euro-
Fresh Market Plaza.  This decrease  was partially offset by increases in common
area maintenance, legal expenses and real estate taxes at the property.


























                                     -10-



The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1997 and 1998:


                                    1997                        1998
                          ------------------------    ------------------------
                           at     at    at    at        at    at    at    at
        Properties         03/31 06/30 09/30 12/31     03/31 06/30 09/30 12/31
        ----------         ----- ----- ----- -----     ----- ----- ----- -----
Scandinavian Health Spa    100%  100%  100%  100%     100%
  Broadview Heights, Ohio

Colonial Manor             100%  100%  100%  100%     100%
  LaGrange, Illinois

K mart                     100%  100%  100%  100%     100%
  Chandler, Arizona

Euro-Fresh Market Plaza     93%   98%   98%   95%      95%
  Palatine, Illinois


Year 2000 Compliance

The  Partnership  has  reviewed  its  current  computer  systems  and  does not
anticipate any future problems relating to the year 2000.












                          PART II - Other Information

Items 1 through 6(b) are  omitted  because  of  the absence of conditions under
which they are required.















                                     -11-



                                  SIGNATURES



Pursuant to the  requirements  of  the  Securities  Exchange  Act  of 1934, the
Registrant has duly caused  this  report  to  be  signed  on  its behalf by the
undersigned, thereunto duly authorized.



                            INLAND MONTHLY INCOME FUND II, L.P.
 
                            By:   Inland Real Estate Investment Corporation
                                  General Partner


                                  /S/ ROBERT D. PARKS

                            By:   Robert D. Parks
                                  Chairman
                            Date: May 15, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: May 15, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: May 15, 1998





















                                     -12-