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

                            FORM 10-K

 Annual Report Pursuant to Section 13 or 15(d) of The Securities
                      Exchange Act of 1934

          For the Fiscal Year Ended:  December 31, 2010

               Commission file number:  000-51823

                 AEI INCOME & GROWTH FUND 26 LLC
     (Exact name of registrant as specified in its charter)

        State of Delaware                41-2173048
(State or other jurisdiction of       (I.R.S. Employer
incorporation or organization)       Identification No.)

      30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
            (Address of principal executive offices)

                         (651) 227-7333
                 (Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act:
     Title of each className of each exchange on which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:
                   Limited Liability Company Units
                        (Title of class)

Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to  file
reports pursuant to Section 13 or Section 15(d) of the Exchange Act.
Yes [ ]  No  [X]

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 [ ]

Indicate  by  check  mark  whether the registrant  has  submitted
electronically  and posted on its corporate  Web  site,  if  any,
every  Interactive Data File required to be submitted and  posted
pursuant  to Rule 405 of Regulation S-T (232.405 of this chapter)
during  the preceding 12 months (or for such shorter period  that
the  registrant was required to submit and post such files).
Yes  [ ]  No  [ ]

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K. [X]

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.

  Large accelerated filer [ ]         Accelerated filer [ ]
  Non-accelerated filer  [ ]          Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell  company
(as defined in Rule 12b-2 of the Act). Yes [ ]  No  [X]

As  of  June  30, 2010, there were 1,827,736.0 Units  of  limited
membership interest outstanding and owned by nonaffiliates of the
registrant,  which  Units had an aggregate  market  value  (based
solely  on  the price at which they were sold since there  is  no
ready market for such Units) of $18,277,360.

               DOCUMENTS INCORPORATED BY REFERENCE
 The registrant has not incorporated any documents by reference
                        into this report.


                             PART I

ITEM 1.   BUSINESS.

        AEI  Income  & Growth Fund 26 LLC (the "Company"  or  the
"Registrant") is a limited liability company which was  organized
pursuant to the laws of the State of Delaware on March 14,  2005.
The  registrant  is  comprised of AEI Fund Management  XXI,  Inc.
("AFM"), as the Managing Member, Robert P. Johnson, the President
and  sole  director of AFM, as the Special Managing  Member,  and
purchasers of LLC Units as Limited Members.  The Company  offered
for  sale up to $100,000,000 of limited membership interests (the
"Units")  (10,000,000  Units  at $10  per  Unit)  pursuant  to  a
registration statement effective October 20, 2005.   The  Company
commenced  operations on April 3, 2006 when minimum subscriptions
of  150,000  LLC Units ($1,500,000) were accepted.  The  offering
terminated  October  19, 2007 when the extended  offering  period
expired.   The  Company received subscriptions for 1,832,736  LLC
Units.   Under the terms of the Operating Agreement, the  Limited
Members and Managing Members contributed funds of $18,327,360 and
$1,000, respectively.

        The  Company was organized to acquire existing and  newly
constructed  commercial properties, to lease such  properties  to
tenants  under  net  leases,  to  hold  such  properties  and  to
eventually sell such properties.  From subscription proceeds, the
Company  purchased eight properties, including partial  interests
in  five properties, at a total cost of $15,376,536.  The balance
of  the  subscription  proceeds was applied to  organization  and
syndication  costs,  working capital reserves and  distributions,
which  represented  a  return  of capital.   The  properties  are
commercial, single tenant buildings leased under net leases.

        The  Company's  properties  were  purchased  without  any
indebtedness.   The  Company will not finance properties  in  the
future to obtain proceeds for new property acquisitions.   If  it
is   required  to  do  so,  the  Company  may  incur   short-term
indebtedness   to  finance  day-to-day  cash  flow   requirements
(including cash flow necessary to repurchase Units).  The Company
may borrow to finance the refurbishing of a property.

        The  Company will hold its properties until the  Managing
Members  determine  that  the sale or other  disposition  of  the
properties  is  advantageous in view of the Company's  investment
objectives.  In deciding whether to sell properties, the Managing
Members will consider factors such as potential appreciation, net
cash flow and income tax considerations.  The Company expects  to
sell some or all of its properties prior to its final liquidation
and  to  reinvest  the  proceeds from such  sales  in  additional
properties.  The Company reserves the right, at the discretion of
the Managing Members, to either distribute proceeds from the sale
of  properties  to  the Members or to reinvest such  proceeds  in
additional  properties,  provided that  sufficient  proceeds  are
distributed  to  the  Limited Members to pay  federal  and  state
income  taxes related to any taxable gain recognized as a  result
of  the  sale.  It is anticipated that the Company will  commence
liquidation through the sale of its remaining properties  ten  to
twelve years after completion of the acquisition phase, depending
upon the then current real estate and money markets, the economic
climate and the income tax consequences to the Members.

ITEM 1.   BUSINESS.  (Continued)

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Company's  leases.  The properties are leased to various  tenants
under  net leases, classified as operating leases.  Under  a  net
lease,   the  tenant  is  responsible  for  real  estate   taxes,
insurance,  maintenance, repairs and operating expenses  for  the
property.   For  some  leases,  the Company  is  responsible  for
repairs  to  the structural components of the building.   At  the
time  the  properties were acquired, the remaining primary  lease
terms varied from 10 to 20 years.  The leases provide the tenants
with  three to four five-year renewal options subject to the same
terms and conditions as the primary term. The leases provide  for
base annual rental payments, payable in monthly installments, and
contain  rent  clauses  which  entitle  the  Company  to  receive
additional rent in future years based on stated rent increases.

Major Tenants

        During 2010, five tenants each contributed more than  ten
percent of the Company's total rental revenue.  The major tenants
in aggregate contributed 87% of total rental revenue in 2010.  It
is  anticipated  that, based on minimum rental payments  required
under  the  leases, each major tenant will continue to contribute
more than ten percent of rental revenue in 2011 and future years.
Any  failure of these major tenants could materially  affect  the
Company's net income and cash distributions.

Competition

        The  Company  is  a minor factor in the  commercial  real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than the Company.  At the time the Company  elects  to
dispose  of its properties, it will be in competition with  other
persons and entities to find buyers for its properties.

Employees

        The Company has no direct employees.  Management services
are  performed for the Company by AEI Fund Management,  Inc.,  an
affiliate of AFM.

ITEM 1A.  RISK FACTORS.

       Not required for a smaller reporting company.

ITEM 1B.  UNRESOLVED STAFF COMMENTS.

       Not required for a smaller reporting company.

ITEM 2.   PROPERTIES.


Investment Objectives

         The  Company's  investment  objectives  are  to  acquire
existing  or  newly-developed commercial properties that  provide
(i)  regular  rental income; (ii) growth in lease income  through
rent   escalation  provisions;  (iii)  capital   growth   through
appreciation  in the value of properties; (iv) reduced  occupancy
risks as a result of long-term leases with creditworthy corporate
tenants;  and (v) passive income that may be offset  by  eligible
passive  losses  from other investments for  tax  purposes.   The
Company does not have a policy, and there is no limitation, as to
the  amount or percentage of assets that may be invested  in  any
one  property.   However,  to the extent possible,  the  Managing
Members  attempt  to  diversify the  type  and  location  of  the
properties.

Description of Properties

        The  Company's properties are commercial,  single  tenant
buildings.  The properties were acquired on a debt-free basis and
are  leased  to  various tenants under net leases, classified  as
operating  leases.   The Company holds an  undivided  fee  simple
interest in the properties.

        The  Company's  properties are  subject  to  the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term  lease, there is little competition until  the  Company
decides to sell the property.  At this time, the Company will  be
competing  with other real estate owners, on both a national  and
local level, in attempting to find buyers for the properties.  In
the  event  of  a tenant default, the Company would be  competing
with  other  real estate owners, who have property vacancies,  to
attract  a  new  tenant  to  lease the property.   The  Company's
tenants  operate in industries that are very competitive and  can
be  affected  by  factors such as changes in  regional  or  local
economies, seasonality and changes in consumer preference.

        The  following table is a summary of the properties  that
the Company acquired and owned as of December 31, 2010.

                                                         Annual    Annual
                Purchase    Property                     Lease     Rent Per
Property          Date        Cost        Tenant         Payment   Sq. Ft.

Sports Authority Store
 Wichita, KS   4/3/06 to
 (40%)          6/30/06    $2,230,753 TSA Stores, Inc.   $204,665  $ 9.79

Advance Auto Parts Store
 Middletown, OH                       Advance Stores
 (55%)           6/1/06    $1,022,289   Company, Inc.    $ 71,679  $18.94

Applebee's
  Restaurant      9/21/06 to          Apple Indiana
  Indianapolis, IN 12/1/06 $3,054,187    II LLC          $220,262  $42.12

Applebee's Restaurant
 Crawfordsville, IN                   Apple Indiana
 (40%)            12/29/06 $1,237,771    II LLC          $ 89,289  $42.44


ITEM 2.   PROPERTIES.  (Continued)

                                                       Annual    Annual
                Purchase    Property                   Lease     Rent Per
Property          Date        Cost      Tenant         Payment   Sq. Ft.

Starbucks Store                         Starbucks
 Bluffton, IN      8/10/07 $1,150,116  Corporation       $ 79,800  $44.16

Red Robin
 Beavercreek, OH                          Red Robin
 (land only)      12/28/07 $1,533,655 International, Inc.$115,500  $ 1.30

Best Buy Store
 Eau Claire, WI                          Best Buy
 (30%)             1/31/08 $2,021,162  Stores, L.P.      $142,222  $10.01

Dick's Sporting Goods
 Fredericksburg, VA                   Dick's Sporting
 (27%)              5/8/08 $3,126,603   Goods, Inc.      $219,445  $16.69


        The  properties  listed above with  a  partial  ownership
percentage  are  owned  with the following  affiliated  entities:
Sports Authority store (AEI Income & Growth Fund 25 LLC); Advance
Auto  Parts  store (AEI Income & Growth Fund 24 LLC);  Applebee's
restaurant  in Crawfordsville, Indiana (AEI Income & Growth  Fund
XXII  Limited Partnership); Best Buy store (AEI Income  &  Growth
Fund  XXI  Limited Partnership and AEI Income &  Growth  Fund  23
LLC); and Dick's Sporting Goods store in Fredericksburg, Virginia
(AEI Income & Growth Fund 23 LLC, AEI Income & Growth Fund 24 LLC
and AEI Income & Growth Fund 25 LLC).

        The  Company accounts for properties owned as tenants-in-
common   with   affiliated  entities  using   the   proportionate
consolidation  method.  Each tenant-in-common  owns  a  separate,
undivided interest in the properties.  Any tenant-in-common  that
holds  more  than a 50% interest does not control decisions  over
the  other  tenant-in-common interests.  The financial statements
reflect  only this Company's percentage share of the  properties'
land, building and equipment, liabilities, revenues and expenses.

        At  the  time the properties were acquired, the remaining
primary  lease  terms  varied from 10 to 20  years.   The  leases
provide  the tenants with three to four five-year renewal options
subject to the same terms and conditions as the primary term.

       Pursuant to the lease agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The Managing Members believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Company's operations.

ITEM 2.   PROPERTIES.  (Continued)

       For tax purposes, the Company's properties are depreciated
under the Modified Accelerated Cost Recovery System (MACRS).  The
largest depreciable component of a property is the building which
is  depreciated, using the straight-line method, over  39  years.
The  remaining depreciable components of a property are  personal
property  and land improvements which are depreciated,  using  an
accelerated method, over 5 and 15 years, respectively.  Since the
Company  has  tax-exempt Members, the Company is subject  to  the
rules  of  Section 168(h)(6) of the Internal Revenue  Code  which
requires  a  percentage of the properties' depreciable components
to  be  depreciated  over  longer lives using  the  straight-line
method.  In general, the federal tax basis of the properties  for
tax  depreciation purposes will be the same as the basis for book
depreciation purposes.

        At  December 31, 2010, all properties listed  above  were
100% occupied.

ITEM 3.   LEGAL PROCEEDINGS.

       None.

ITEM 4.   REMOVED AND RESERVED.


                             PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        (a)  As  of December 31, 2010, there were 454 holders  of
record of the registrant's LLC Units.  There is no other class of
security  outstanding or authorized.  The registrant's Units  are
not  a  traded security in any market.  During the period covered
by  this  report, the Company did not sell any equity  securities
that are not registered under the Securities Act of 1933.

       Cash distributions of $28,333 and $25,009 were made to the
Managing  Members  and $916,092 and $916,368  were  made  to  the
Limited   Members   for   2010  and  2009,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash  Flow,  as  defined,  and a partial  return  of  contributed
capital.   These  distributions  should  not  be  compared   with
dividends paid on capital stock by corporations.

       (b) Not Applicable.

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        (c)  Pursuant to Section 7.7 of the Operating  Agreement,
each Limited Member has the right to present Units to the Company
for  purchase by submitting notice to the Managing Member  during
January or July of each year.  The purchase price of the Units is
equal  to  85% of the net asset value per Unit, as of  the  first
business  day  of January or July of each year, as determined  by
the  Managing  Member in accordance with the  provisions  of  the
Operating Agreement.  The purchase price is equal to 100% of  the
net  asset  value  per Unit in the case of Units  of  a  deceased
investor, who purchased the Units in the initial offering and who
is  a natural person, including Units held by an investor that is
an  IRA or other qualified plan for which the deceased person was
the  primary beneficiary, or Units held by an investor that is  a
grantor trust for which the deceased person was the grantor.

        Units tendered to the Company during January and July are
redeemed on April 1st and October 1st, respectively, of each year
subject  to the following limitations.  The Company will  not  be
obligated  to  purchase in any year more than  2%  of  the  total
number  of  Units outstanding on January 1 of such year.   In  no
event shall the Company be obligated to purchase Units if, in the
sole  discretion  of  the Managing Member,  such  purchase  would
impair the capital or operation of the Company.  During the  last
three months of 2010, the Company did not purchase any Units.

Other Information

        The Company is required, pursuant to FINRA Rule 2810,  to
disclose  in each annual report distributed to Limited Members  a
per  Unit  estimated value, the method by which it was  developed
and the date of the data used to develop the estimated value.  At
December  31,  2010, the Company's Units were  valued  at  $7.57.
This  value  was the aggregate estimated value of  the  Company's
assets  less  the  Company's  liabilities,  and  less  the  value
attributable to the interest of the Managing Members, divided  by
the number of Units outstanding.  The Company's cash, receivables
and liabilities were valued at face value.  Each of the Company's
properties were valued by dividing their annual rental income  as
of  December 1, 2010 by a capitalization rate the Managing Member
believed  to be representative of the retail market for the  sale
of  each  property.  The resulting value for  each  property  was
reviewed  to determine that it also reflected circumstances  that
may  have  been unique to each specific property. No  independent
property  appraisals were obtained.  The valuations performed  by
the  Managing  Member were estimates only, and were  based  on  a
number of assumptions which may not be accurate or complete.   In
addition, property values are subject to change and could decline
after  the  date of the valuations.  Accordingly, this  estimated
value,  prepared by the Managing Member, should not be viewed  as
the  amount  at which a Limited Member may be able  to  sell  his
units,  or  the fair market value of the Company properties,  nor
does  it  represent  the amount of net proceeds  Limited  Members
would  receive  if  the  Company properties  were  sold  and  the
proceeds distributed in a liquidation of the Company.

ITEM 6.   SELECTED FINANCIAL DATA.

       Not required for a smaller reporting company.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS.

        This  section contains "forward-looking statements" which
represent management's expectations or beliefs concerning  future
events, including statements regarding anticipated application of
cash, expected returns from rental income, growth in revenue, the
sufficiency  of  cash  to  meet  operating  expenses,  rates   of
distribution,  and  other  matters.  These,  and  other  forward-
looking  statements,  should be evaluated in  the  context  of  a
number  of  factors  that  may  affect  the  Company's  financial
condition and results of operations, including the following:

     Market  and  economic conditions which affect the  value
     of  the  properties the Company owns and the cash  from
     rental income such properties generate;

     the  federal  income tax consequences of rental  income,
     deductions,  gain  on  sales and other  items  and  the
     effects of these consequences for Members;

     resolution  by  the Managing Members of  conflicts  with
     which they may be confronted;

     the   success  of  the  Managing  Members  of   locating
     properties with favorable risk return characteristics;

     the effect of tenant defaults; and

     the  condition of the industries in which the tenants of
     properties owned by the Company operate.


Application of Critical Accounting Policies

        The  preparation  of  the Company's financial  statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,   including  those  related  to  the  carrying  value   of
investments  in  real  estate  and the  allocation  by  AEI  Fund
Management, Inc. of expenses to the Company as opposed  to  other
funds they manage.

        The Company purchases properties and records them in  the
financial   statements   at  cost  (not   including   acquisition
expenses).     The   Company   tests   long-lived   assets    for
recoverability  when events or changes in circumstances  indicate
that  the  carrying value may not be recoverable.  For properties
the  Company will hold and operate, management determines whether
impairment  has occurred by comparing the property's probability-
weighted  future undiscounted cash flows to its current  carrying
value.   For  properties  held  for sale,  management  determines
whether  impairment  has  occurred by  comparing  the  property's
estimated  fair  value less cost to sell to its current  carrying
value.   If the carrying value is greater than the net realizable
value,  an  impairment loss is recorded to  reduce  the  carrying
value  of  the property to its net realizable value.  Changes  in
these  assumptions or analysis may cause material changes in  the
carrying value of the properties.

        AEI  Fund Management, Inc. allocates expenses to each  of
the  funds  they manage primarily on the basis of the  number  of
hours  devoted  by their employees to each fund's affairs.   They
also  allocate  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds they manage.  The Company reimburses these  expenses
subject  to  detailed  limitations  contained  in  the  Operating
Agreement.


ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Management  of the Company has discussed the  development
and   selection  of  the  above  accounting  estimates  and   the
management  discussion  and analysis disclosures  regarding  them
with the managing member of the Company.

Results of Operations

        For  the  years  ended December 31, 2010  and  2009,  the
Company  recognized rental income of $1,142,862  and  $1,144,072,
respectively.   Based on the scheduled rent  for  the  properties
owned  as  of February 28, 2011, the Company expects to recognize
rental income of approximately $1,149,000 in 2011.

        For  the  years  ended December 31, 2010  and  2009,  the
Company  incurred  LLC  administration expenses  from  affiliated
parties   of   $174,243   and  $177,110,   respectively.    These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and communicating with the Limited Members.   During
the  same  periods,  the Company incurred LLC administration  and
property  management expenses from unrelated parties  of  $24,236
and  $25,948,  respectively.   These  expenses  represent  direct
payments  to  third  parties for legal and  filing  fees,  direct
administrative costs, outside audit costs, taxes,  insurance  and
other property costs.

         For   the  years  ended  December  31,  2010  and  2009,
depreciation expense was $375,383 and $436,708, respectively.  In
2009,   depreciation  expense  was  higher   as   a   result   of
reclassifying the Sports Authority store in Wichita, Kansas  from
held-for-sale  status to held-for-use status  during  the  fourth
quarter  of  2009.  At the time of reclassification, the  Company
recognized  $122,651  of  additional  depreciation  expense  that
represented  the  amount of depreciation  that  would  have  been
recognized if the property had not been classified as Real Estate
Held for Sale.  This amount represented two years of depreciation
expense  for  the property, which was recognized  in  the  fourth
quarter of 2009.

        For  the  years  ended December 31, 2010  and  2009,  the
Company   recognized  interest  income  of  $2,367  and   $2,513,
respectively.

         Management  believes  inflation  has  not  significantly
affected  income  from  operations.   Leases  may  contain   rent
increases, based on the increase in the Consumer Price Index over
a  specified period, which will result in an increase  in  rental
income over the term of the leases.  Inflation also may cause the
real  estate  to  appreciate in value.   However,  inflation  and
changing  prices  may  have an adverse impact  on  the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

        During  the  year ended December 31, 2010, the  Company's
cash balances decreased $47,754 as a result of distributions  and
redemption  payments  paid  to the  Members  in  excess  of  cash
generated  from  operating activities.   During  the  year  ended
December 31, 2009, the Company's cash balances decreased  $13,001
as  a  result of distributions paid to the Members in  excess  of
cash generated from operating activities.


ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Net  cash provided by operating activities decreased from
$940,186 in 2009 to $936,172 in 2010 as a result of a decrease in
total   rental  and  interest  income  in  2010  and  net  timing
differences  in the collection of payments from the  tenants  and
the  payment  of  expenses,  which were  partially  offset  by  a
decrease  in LLC administration and property management  expenses
in 2010.

        The  Company's  primary  use of  cash  flow,  other  than
investment   in  real  estate,  is  distribution  and  redemption
payments  to Members.  The Company declares its regular quarterly
distributions  before  the  end of  each  quarter  and  pays  the
distribution  in  the first week after the end of  each  quarter.
The  Company attempts to maintain a stable distribution rate from
quarter  to  quarter.  Redemption payments are paid to  redeeming
Members on a semi-annual basis.

        For  the  years  ended December 31, 2010  and  2009,  the
Company   declared  distributions  of  $944,425   and   $941,377,
respectively.   The  Limited  Members received  distributions  of
$916,092   and   $916,368  and  the  Managing  Members   received
distributions   of   $28,333  and  $25,009   for   the   periods,
respectively.

        The  Company may acquire Units from Limited  Members  who
have  tendered  their Units to the Company.  Such  Units  may  be
acquired  at  a discount.  The Company will not be  obligated  to
purchase  in any year more than 2% of the total number  of  Units
outstanding  on  January 1 of such year.  In no event  shall  the
Company be obligated to purchase Units if, in the sole discretion
of the Managing Member, such purchase would impair the capital or
operation of the Company.

        During 2010, one Limited Member redeemed a total of 5,000
Units  for  $38,225  in accordance with the Operating  Agreement.
The  Company  acquired  these Units  using  Net  Cash  Flow  from
operations.   During 2009, the Company did not redeem  any  Units
from the Limited Members.  The redemptions increase the remaining
Limited Members' ownership interest in the Company.  As a  result
of   this  redemption  payment  and  pursuant  to  the  Operating
Agreement, the Managing Members received distributions of  $1,182
in 2010.

       The continuing rent payments from the properties should be
adequate   to  fund  continuing  distributions  and  meet   other
obligations on both a short-term and long-term basis.

The Economy and Market Conditions

       The impact of conditions in the current economy, including
the  turmoil  in the credit markets, has adversely affected  many
real  estate investment funds.  However, the absence of  mortgage
financing  on  the Company's properties eliminates the  risks  of
foreclosure and debt-refinancing that can negatively  impact  the
value  and  distributions  of leveraged  real  estate  investment
funds.  Nevertheless, a prolonged economic downturn may adversely
affect  the  operations of the Company's tenants and  their  cash
flows.  If a tenant were to default on its lease obligations, the
Company's  income would decrease, its distributions would  likely
be reduced and the value of its properties might decline.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        The Company's plan is to periodically sell properties  to
generate  capital gains that would be included in  the  Company's
regular quarterly distributions and to make special distributions
on  occasion.   Beginning in the fourth quarter of 2008,  general
economic conditions caused the volume of property sales  to  slow
dramatically for all real estate sellers.  During 2008, 2009  and
2010,  the  Company did not complete any property  sales.   Until
such  time  as  economic conditions allow the  Company  to  begin
selling  properties at attractive prices, quarterly distributions
will  reflect  the  distribution of net core  rental  income  and
capital  reserves,  if  any.   Distribution  rates  in  2011  are
expected to be consistent with distribution rates in 2010.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

       See accompanying index to financial statements.






                 AEI INCOME & GROWTH FUND 26 LLC

                  INDEX TO FINANCIAL STATEMENTS






Report of Independent Registered Public Accounting Firm

Balance Sheet as of December 31, 2010 and 2009

Statements for the Years Ended December 31, 2010 and 2009:

     Income

     Cash Flows

     Changes in Members' Equity (Deficit)

Notes to Financial Statements




     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Members:
AEI Income & Growth Fund 26 LLC
St. Paul, Minnesota



     We have audited the accompanying balance sheet of AEI Income
& Growth Fund 26 LLC (a Delaware limited liability company) as of
December 31, 2010 and 2009 and the related statements of  income,
cash flows and changes in members' equity (deficit) for the years
then  ended.  The Company's management is responsible  for  these
financial  statements.   Our  responsibility  is  to  express  an
opinion on these financial statements based on our audits.

      We conducted our audits in accordance with the standards of
the  Public  Company Accounting Oversight Board (United  States).
Those  standards require that we plan and perform  the  audit  to
obtain   reasonable   assurance  about  whether   the   financial
statements are free of material misstatement.  The Company is not
required to have, nor were we engaged to perform, an audit of its
internal  control over financial reporting.  Our  audit  included
consideration of internal control over financial reporting  as  a
basis for designing audit procedures that are appropriate in  the
circumstances, but not for the purpose of expressing  an  opinion
on  the  effectiveness  of the Company's  internal  control  over
financial  reporting.  Accordingly, we express no  such  opinion.
An  audit  also  includes examining, on a  test  basis,  evidence
supporting   the  amounts  and  disclosures  in   the   financial
statements,   assessing  the  accounting  principles   used   and
significant  estimates made by management, as well as  evaluating
the  overall  financial statement presentation.  We believe  that
our audits provide a reasonable basis for our opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of  AEI  Income & Growth Fund 26 LLC as of December 31, 2010  and
2009,  and  the results of its operations and its cash flows  for
the  years  then ended, in conformity with accounting  principles
generally accepted in the United States of America.




                           /s/Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                   Certified Public Accountants

Minneapolis, Minnesota
March 25, 2011

<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
                          BALANCE SHEET
                           DECEMBER 31

                             ASSETS

                                                      2010          2009
CURRENT ASSETS:
  Cash                                            $   327,898  $   375,652

INVESTMENTS IN REAL ESTATE:
  Land                                              5,991,984    5,991,984
  Buildings and Equipment                           9,384,552    9,384,552
  Accumulated Depreciation                         (1,413,596)  (1,038,213)
                                                   -----------  -----------
      Net Investments in Real Estate               13,962,940   14,338,323
                                                   -----------  -----------
           Total  Assets                          $14,290,838  $14,713,975
                                                   ===========  ===========

                         LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $    11,813  $    22,391
  Distributions Payable                               236,083      236,177
  Unearned Rent                                        25,796       25,796
                                                   -----------  -----------
      Total Current Liabilities                       273,692      284,364
                                                   -----------  -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members                                    (43,895)     (31,521)
  Limited Members, $10 per Unit;
   10,000,000 Units authorized; 1,832,736 Units issued;
   1,827,736 and 1,832,736 Units outstanding in
   2010 and 2009, respectively                     14,061,041   14,461,132
                                                   -----------  -----------
      Total Members' Equity                        14,017,146   14,429,611
                                                   -----------  -----------
         Total Liabilities and Members' Equity    $14,290,838  $14,713,975
                                                   ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
                       STATEMENT OF INCOME
                 FOR THE YEARS ENDED DECEMBER 31


                                                       2010         2009

RENTAL INCOME                                      $ 1,142,862  $ 1,144,072

EXPENSES:
  LLC Administration - Affiliates                      174,243      177,110
  LLC Administration and Property
     Management - Unrelated Parties                     24,236       25,948
  Depreciation                                         375,383      436,708
                                                    -----------  -----------
      Total Expenses                                   573,862      639,766
                                                    -----------  -----------

OPERATING INCOME                                       569,000      504,306

OTHER INCOME:
  Interest Income                                        2,367        2,513
                                                    -----------  -----------
NET INCOME                                         $   571,367  $   506,819
                                                    ===========  ===========

NET INCOME ALLOCATED:
  Managing Members                                 $    17,141  $    15,205
  Limited Members                                      554,226      491,614
                                                    -----------  -----------
                                                   $   571,367  $   506,819
                                                    ===========  ===========

NET INCOME PER LLC UNIT                            $       .30  $       .27
                                                    ===========  ===========

Weighted Average Units Outstanding-Basic and Diluted 1,828,986    1,832,736
                                                    ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
                     STATEMENT OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31


                                                         2010        2009

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                        $   571,367  $   506,819

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                       375,383      436,708
     Decrease in Receivables                                  0        2,283
     Decrease in Payable to
        AEI Fund Management, Inc.                       (10,578)      (5,624)
                                                     -----------  -----------
       Total Adjustments                                364,805      433,367
                                                     -----------  -----------
       Net Cash Provided By
           Operating Activities                         936,172      940,186
                                                     -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Distributions Paid to Members                        (944,519)    (953,187)
  Redemption Payments                                   (39,407)           0
                                                     -----------  -----------
       Net Cash Used For
           Financing Activities                        (983,926)    (953,187)
                                                     -----------  -----------

NET DECREASE IN CASH                                    (47,754)     (13,001)

CASH, beginning of year                                 375,652      388,653
                                                     -----------  -----------
CASH, end of year                                   $   327,898  $   375,652
                                                     ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
        STATEMENT OF CHANGES IN MEMBERS' EQUITY (DEFICIT)
                 FOR THE YEARS ENDED DECEMBER 31


                                                                  Limited
                                                                   Member
                              Managing     Limited                 Units
                              Members      Members     Total    Outstanding


BALANCE,  December 31, 2008 $ (21,717) $14,885,886  $14,864,169  1,832,736.0

  Distributions Declared      (25,009)    (916,368)    (941,377)

  Net Income                   15,205      491,614      506,819
                             ---------  -----------  ----------- -----------
BALANCE, December 31, 2009    (31,521)  14,461,132   14,429,611  1,832,736.0

  Distributions Declared      (28,333)    (916,092)    (944,425)

  Redemption Payments          (1,182)     (38,225)     (39,407)    (5,000.0)

  Net Income                   17,141      554,226      571,367
                             ---------  -----------  ----------- -----------
BALANCE,  December 31, 2010 $ (43,895) $14,061,041  $14,017,146  1,827,736.0
                             =========  ===========  =========== ===========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(1)  Organization -

     AEI  Income  &  Growth  Fund 26 LLC ("Company"),  a  Limited
     Liability  Company, was formed on March 14, 2005 to  acquire
     and  lease commercial properties to operating tenants.   The
     Company's operations are managed by AEI Fund Management XXI,
     Inc.  ("AFM"), the Managing Member.  Robert P. Johnson,  the
     President  and sole director of AFM, serves as  the  Special
     Managing  Member.  AFM is a wholly owned subsidiary  of  AEI
     Capital  Corporation of which Mr. Johnson  is  the  majority
     shareholder.    AEI  Fund  Management,  Inc.   ("AEI"),   an
     affiliate  of AFM, performs the administrative and operating
     functions for the Company.

     The terms of the offering called for a subscription price of
     $10  per LLC Unit, payable on acceptance of the offer.   The
     Company  commenced operations on April 3, 2006 when  minimum
     subscriptions   of  150,000  LLC  Units  ($1,500,000)   were
     accepted.   The offering terminated October 19,  2007,  when
     the  extended offering period expired.  The Company received
     subscriptions for 1,832,736 Units.  Under the terms  of  the
     Operating  Agreement,  the  Limited  Members  and   Managing
     Members   contributed  funds  of  $18,327,360  and   $1,000,
     respectively.  The Company shall continue until December 31,
     2055,  unless dissolved, terminated and liquidated prior  to
     that date.

     During operations, any Net Cash Flow, as defined, which  the
     Managing Members determine to distribute will be distributed
     97%  to  the Limited Members and 3% to the Managing Members.
     Distributions to Limited Members will be made  pro  rata  by
     Units.

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the Managing Members determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Members  and 1% to the Managing Members  until  the
     Limited  Members  receive  an amount  equal  to:  (a)  their
     Adjusted  Capital Contribution plus (b) an amount  equal  to
     6.5%  of  their  Adjusted  Capital Contribution  per  annum,
     cumulative  but not compounded, to the extent not previously
     distributed  from Net Cash Flow; (ii) any remaining  balance
     will  be distributed 90% to the Limited Members and  10%  to
     the  Managing Members.  Distributions to the Limited Members
     will be made pro rata by Units.

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated 97% to the Limited Members and 3% to the  Managing
     Members.   Net losses from operations will be allocated  99%
     to the Limited Members and 1% to the Managing Members.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(1)  Organization - (Continued)

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with  the Operating Agreement  as  follows:  (i)
     first,  to  those  Members with deficit  balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the  Limited  Members
     and  1%  to the Managing Members until the aggregate balance
     in  the Limited Members' capital accounts equals the sum  of
     the Limited Members' Adjusted Capital Contributions plus  an
     amount equal to 6.5% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated;  (iii)  third,  the  balance  of  any
     remaining  gain  will then be allocated 90% to  the  Limited
     Members  and  10% to the Managing Members.  Losses  will  be
     allocated 99% to the Limited Members and 1% to the  Managing
     Members.

     The  Managing Members are not required to currently  fund  a
     deficit capital balance.  Upon liquidation of the Company or
     withdrawal  by a Managing Member, the Managing Members  will
     contribute to the Company an amount equal to the  lesser  of
     the  deficit balances in their capital accounts or 1.01%  of
     the  total capital contributions of the Limited Members over
     the amount previously contributed by the Managing Members.

(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       The  accounts of the Company are maintained on the accrual
       basis  of  accounting for both federal income tax purposes
       and financial reporting purposes.

     Accounting Estimates

       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual   results   could  differ  from  those   estimates.
       Significant   items,   subject  to  such   estimates   and
       assumptions, include the carrying value of investments  in
       real estate.

       The  Company regularly assesses whether market events  and
       conditions  indicate  that it is  reasonably  possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(2)  Summary of Significant Accounting Policies - (Continued)

     Cash Concentrations of Credit Risk

       The   Company's   cash  is  deposited  in  one   financial
       institution  and at times during the year  it  may  exceed
       FDIC insurance limits.

     Receivables

       Credit  terms are extended to tenants in the normal course
       of   business.    The  Company  performs  ongoing   credit
       evaluations  of  its customers' financial  condition  and,
       generally, requires no collateral.

       Receivables   are   recorded  at   their   estimated   net
       realizable  value.   The  Company  follows  a  policy   of
       providing  an  allowance for doubtful  accounts;  however,
       based on historical experience, and its evaluation of  the
       current  status  of  receivables, the Company  is  of  the
       belief that such accounts, if any, will be collectible  in
       all  material  respects  and  thus  an  allowance  is  not
       necessary.   Accounts are considered past due  if  payment
       is  not  made  on  a timely basis in accordance  with  the
       Company's    credit    terms.    Receivables    considered
       uncollectible are written off.

     Income Taxes

       The  income or loss of the Company for federal income  tax
       reporting  purposes  is  includable  in  the  income   tax
       returns  of  the Members.  In general, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.

       The  tax  return  and the amount of distributable  Company
       income  or loss are subject to examination by federal  and
       state  taxing authorities.  If such an examination results
       in  changes to distributable Company income or  loss,  the
       taxable   income   of  the  members  would   be   adjusted
       accordingly.   Primarily  due  to  its  tax  status  as  a
       partnership,   the   Company  has   no   significant   tax
       uncertainties that require recognition or disclosure.

     Revenue Recognition

       The  Company's  real estate is leased  under  net  leases,
       classified  as operating leases.  The leases  provide  for
       base   annual   rental   payments   payable   in   monthly
       installments.   The  Company  recognizes  rental   revenue
       according  to  the  terms of the individual  leases.   For
       leases   that   contain  stated  rental   increases,   the
       increases  are  recognized in the year in which  they  are
       effective.   Contingent  rental  payments  are  recognized
       when  the  contingencies on which the payments  are  based
       are  satisfied  and the rental payments become  due  under
       the terms of the leases.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(2)  Summary of Significant Accounting Policies - (Continued)

     Investments in Real Estate

       The  Company  purchases properties  and  records  them  at
       cost.   The  Company tests real estate for  recoverability
       when events or changes in circumstances indicate that  the
       carrying  value  may not be recoverable.   For  properties
       the  Company  will  hold  and  operate,  it  compares  the
       carrying   amount  of  the  property  to   the   estimated
       probability-weighted   future  undiscounted   cash   flows
       expected  to  result from the property  and  its  eventual
       disposition.   If  the  sum of the  expected  future  cash
       flows  is  less than the carrying amount of the  property,
       the  Company recognizes an impairment loss by  the  amount
       by  which the carrying amount of the property exceeds  the
       fair  value  of  the  property.  For properties  held  for
       sale,  the  Company  determines  whether  impairment   has
       occurred by comparing the property's estimated fair  value
       less  cost to sell to its current carrying value.  If  the
       carrying  value is greater than the net realizable  value,
       an  impairment  loss  is recorded to reduce  the  carrying
       value of the property to its net realizable value.

       Prior  to  January  1,  2009, the Company  capitalized  as
       Investments in Real Estate certain costs incurred  in  the
       review and acquisition of the properties.  The costs  were
       allocated  to  the  land, buildings  and  equipment.   For
       acquisitions  completed  on  or  after  January  1,  2009,
       acquisition-related transaction costs will be expensed  as
       incurred  as a result of the Company adopting new guidance
       on   business  combinations  that  expands  the  scope  of
       acquisition accounting.

       The   buildings   and  equipment  of   the   Company   are
       depreciated  using the straight-line method for  financial
       reporting purposes based on estimated useful lives  of  25
       years and 5 years, respectively.

       Upon complete disposal of a property or classification  of
       a  property  as  Real Estate Held for  Sale,  the  Company
       includes  the  operating results and sale of the  property
       in  discontinued  operations.  In  addition,  the  Company
       reclassifies the prior periods' operating results  of  the
       property to discontinued operations.

       The  Company  accounts for properties owned as tenants-in-
       common  with  affiliated entities using the  proportionate
       consolidation  method.   Each  tenant-in-common   owns   a
       separate,  undivided  interest  in  the  properties.   Any
       tenant-in-common that holds more than a 50% interest  does
       not  control  decisions  over the  other  tenant-in-common
       interests.   The  financial statements reflect  only  this
       Company's  percentage  share  of  the  properties'   land,
       building   and   equipment,  liabilities,   revenues   and
       expenses.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Company's  properties  are subject  to  environmental
       laws  and  regulations  adopted  by  various  governmental
       entities  in the jurisdiction in which the properties  are
       located.    These  laws  could  require  the  Company   to
       investigate  and remediate the effects of the  release  or
       disposal  of  hazardous materials at  these  locations  if
       found.  For each property, an environmental assessment  is
       completed  prior to acquisition.  In addition,  the  lease
       agreements  typically  strictly prohibit  the  production,
       handling, or storage of hazardous materials (except  where
       incidental  to  the  tenant's  business  such  as  use  of
       cleaning  supplies)  in violation  of  applicable  law  to
       restrict  environmental and other  damage.   Environmental
       liabilities  are  recorded  when  it  is  determined   the
       liability  is  probable and the costs  can  reasonably  be
       estimated.   There were no environmental issues  noted  or
       liabilities recorded at December 31, 2010 and 2009.


     Fair Value Measurements

       As  of  December 31, 2010, the Company has  no  assets  or
       liabilities  measured at fair value on a  recurring  basis
       or nonrecurring basis.

     Recently Issued Accounting Pronouncements

       Management  has  reviewed recently  issued,  but  not  yet
       effective,  accounting pronouncements and does not  expect
       the  implementation  of  these pronouncements  to  have  a
       significant effect on the Company's financial statements.

(3)  Related Party Transactions -

     The  Company owns the percentage interest shown below in the
     following   properties   as   tenants-in-common   with   the
     affiliated entities listed:  Sports Authority store  (40%  -
     AEI  Income & Growth Fund 25 LLC); Advance Auto Parts  store
     (55%  -  AEI  Income  &  Growth  Fund  24  LLC);  Applebee's
     restaurant  in Crawfordsville, Indiana (40% - AEI  Income  &
     Growth Fund XXII Limited Partnership); Best Buy store (30% -
     AEI  Income  & Growth Fund XXI Limited Partnership  and  AEI
     Income  &  Growth  Fund 23 LLC); and Dick's  Sporting  Goods
     store in Fredericksburg, Virginia (27% - AEI Income & Growth
     Fund  23 LLC, AEI Income & Growth Fund 24 LLC and AEI Income
     & Growth Fund 25 LLC).


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(3)  Related Party Transactions - (Continued)

     AEI  received  the following reimbursements  for  costs  and
     expenses from the Company for the years ended December 31:

                                                        2010        2009

a.AEI is reimbursed for costs incurred in providing services
  related to managing the Company's operations and
  properties, maintaining the Company's books, and
  communicating with the Limited Members.             $ 174,243  $ 177,110
                                                       ========   ========
b.AEI is reimbursed for all direct expenses it paid on the
  Company's behalf to third parties related to Company
  administration and property management.  These
  expenses included printing costs, legal and filing fees,
  direct administrative costs, outside audit costs, taxes
  insurance and other property costs.                 $  24,236  $  25,948
                                                       ========   ========

     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance  due for the services described in 3a and  b.   This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.

(4)  Investments in Real Estate -

     The  Company leases its properties to various tenants  under
     net  leases,  classified as operating leases.  Under  a  net
     lease,  the  tenant  is responsible for real  estate  taxes,
     insurance,  maintenance, repairs and operating expenses  for
     the  property.  For some leases, the Company is  responsible
     for  repairs  to the structural components of the  building.
     At  the  time  the properties were acquired,  the  remaining
     primary lease terms varied from 10 to 20 years.  The  leases
     provide  the  tenants with three to four  five-year  renewal
     options  subject  to the same terms and  conditions  as  the
     primary term.

     The   Company's  properties  are  commercial,  single-tenant
     buildings.  The  Sports Authority store was  constructed  in
     1996,  renovated in 2001 and acquired in 2006.  The  Advance
     Auto  Parts  store was constructed in 2004 and  acquired  in
     2006.   The  Applebee's restaurant in Indianapolis,  Indiana
     was   constructed  in  1997  and  acquired  in  2006.    The
     Applebee's   restaurant  in  Crawfordsville,   Indiana   was
     constructed  in  1996 and acquired in 2006.   The  Starbucks
     restaurant was constructed and acquired in 2007.   The  Best
     Buy  store  was constructed in 1990, renovated in  1997  and
     acquired  in  2008.  The land for the Dick's Sporting  Goods
     store was acquired in 2007 and construction of the store was
     completed in 2008.  There have been no costs capitalized  as
     improvements subsequent to the acquisitions.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(4)  Investments in Real Estate - (Continued)

     The   cost   of   the  properties  and  related  accumulated
     depreciation at December 31, 2010 are as follows:

                                          Buildings and           Accumulated
Property                            Land    Equipment    Total    Depreciation

Sports Authority, Wichita, KS $  697,617  $1,533,136  $ 2,230,753  $  288,295
Advance Auto Parts,
 Middletown, OH                  112,315     909,974    1,022,289     166,829
 Applebee's, Indianapolis, IN    889,340   2,164,847    3,054,187     365,174
Applebee's, Crawfordsville, IN   337,353     900,418    1,237,771     144,068
Starbucks, Bluffton, IN          344,008     806,108    1,150,116     108,824
Red Robin, Beavercreek, OH     1,533,655           0    1,533,655           0
Best Buy, Eau Claire, WI         474,137   1,547,025    2,021,162     180,486
Dick's Sporting Goods,
  Fredericksburg, VA           1,603,559   1,523,044    3,126,603     159,920
                               ----------  ----------  -----------  ----------
                              $5,991,984  $9,384,552  $15,376,536  $1,413,596
                               ==========  ==========  ===========  ==========


     For  properties owned as of December 31, 2010,  the  minimum
     future rent payments required by the leases are as follows:

                       2011           $ 1,148,666
                       2012             1,189,119
                       2013             1,201,276
                       2014             1,225,858
                       2015             1,233,860
                       Thereafter       6,053,369
                                       -----------
                                      $12,052,148
                                       ===========

     In 2009, the Company recognized contingent rents of $3,234.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(5)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed  more  than ten percent of the  Company's  total
     rent revenue for the years ended December 31:

      Tenants                       Industry        2010         2009

     Apple American Group          Restaurant   $  309,551    $  309,551
     Dick's Sporting Goods, Inc.   Retail          219,445       219,445
     TSA Stores, Inc.              Retail          204,665       204,665
     Best Buy Stores, L.P.         Retail          142,222       142,223
     Red Robin International, Inc. Restaurant      115,500       116,109
                                                 ----------    ----------
     Aggregate rent revenue of major tenants    $  991,383    $  991,993
                                                 ==========    ==========
     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                 87%           87%
                                                 ==========    ==========

(6)  Members' Capital -

     For  the years ended December 31, 2010 and 2009, the Company
     declared    distributions   of   $944,425   and    $941,377,
     respectively.  The Limited Members received distributions of
     $916,092  and  $916,368  and the Managing  Members  received
     distributions  of  $28,333  and  $25,009  for   the   years,
     respectively.  The Limited Members' distributions  represent
     $0.50 and $0.50 per LLC Unit outstanding using 1,828,986 and
     1,832,736   weighted  average  Units  in  2010   and   2009,
     respectively.  The distributions represent $0.30  and  $0.27
     per  Unit  of  Net Income and $0.20 and $0.23  per  Unit  of
     return   of   contributed  capital   in   2010   and   2009,
     respectively.

     The  Company may acquire Units from Limited Members who have
     tendered  their  Units to the Company.  Such  Units  may  be
     acquired  at a discount.  The Company will not be  obligated
     to  purchase in any year more than 2% of the total number of
     Units  outstanding on January 1 of such year.  In  no  event
     shall the Company be obligated to purchase Units if, in  the
     sole discretion of the Managing Members, such purchase would
     impair the capital or operation of the Company.

     During  2010, one Limited Member redeemed a total  of  5,000
     Units   for   $38,225  in  accordance  with  the   Operating
     Agreement.  The Company acquired these Units using Net  Cash
     Flow  from  operations.  During 2009, the  Company  did  not
     redeem  any Units from the Limited Members.  The redemptions
     increase  the remaining Limited Members' ownership  interest
     in  the Company.  As a result of this redemption payment and
     pursuant  to  the Operating Agreement, the Managing  Members
     received distributions of $1,182 in 2010.

     After  the  effect  of  redemptions,  the  Adjusted  Capital
     Contribution,  as  defined in the  Operating  Agreement,  is
     $10.03 per original $10 invested.


                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2010 AND 2009

(7)  Income Taxes -

     The   following  is  a  reconciliation  of  net  income  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:

                                                         2010       2009

     Net  Income for Financial Reporting Purposes    $  571,367  $  506,819

     Depreciation for Tax Purposes Under
       Depreciation  for Financial Reporting Purposes   107,685     165,015
                                                      ----------  ----------
           Taxable Income to Members                 $  679,052  $  671,834
                                                      ==========  ==========

     The  following  is a reconciliation of Members'  Equity  for
     financial reporting purposes to Members' Equity reported for
     federal income tax purposes for the years ended December 31:

                                                          2010       2009

     Members'Equity for Financial Reporting Purposes $14,017,146  $14,429,611

     Depreciation for Tax Purposes Under
      Depreciation for Financial Reporting Purposes      427,401      319,716

     Income Accrued for Tax Purposes Over
      Income for Financial Reporting Purposes             25,796       25,796

     Syndication Costs Treated as Reduction of
      Capital for Financial Reporting Purposes         2,691,997    2,691,997
                                                      -----------  -----------
     Members' Equity for Tax Reporting Purposes      $17,162,340  $17,467,120
                                                      ===========  ===========


ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
        ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.

ITEM 9A.  CONTROLS AND PROCEDURES.

        (a)  Disclosure Controls and Procedures.

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the Managing Member of the Company evaluated the effectiveness of
the   design  and  operation  of  our  disclosure  controls   and
procedures  (as  defined in Rule 13a-15(e) under  the  Securities
Exchange  Act  of  1934 (the "Exchange Act")).  Based  upon  that
evaluation,  the  President and Chief Financial  Officer  of  the
Managing  Member  concluded that, as of the  end  of  the  period
covered  by  this report, our disclosure controls and  procedures
were  effective  in  ensuring  that information  required  to  be
disclosed  by us in the reports that we file or submit under  the
Exchange  Act  is  recorded, processed, summarized  and  reported
within  the time periods specified in applicable rules and  forms
and  that  such  information is accumulated and  communicated  to
management,  including the President and Chief Financial  Officer
of  the Managing Member, in a manner that allows timely decisions
regarding required disclosure.

       (b)  Internal Control Over Financial Reporting.

       (i) Management's Report on Internal Control Over Financial
Reporting.   The  Managing  Member, through  its  management,  is
responsible  for  establishing and maintaining adequate  internal
control  over  our financial reporting, as defined in  Rule  13a-
15(f) under the Exchange Act, and for performing an assessment of
the   effectiveness  of  our  internal  control  over   financial
reporting  as  of  December  31,  2010.   Internal  control  over
financial  reporting is a process designed to provide  reasonable
assurance  regarding the reliability of financial  reporting  and
the preparation of financial statements for external purposes  in
accordance  with  generally accepted accounting principles.   Our
system  of  internal  control over financial  reporting  includes
those policies and procedures that (i) pertain to the maintenance
of  records  that,  in reasonable detail, accurately  and  fairly
reflect  the transactions and dispositions of the assets  of  the
Company; (ii) provide reasonable assurance that transactions  are
recorded   as  necessary  to  permit  preparation  of   financial
statements  in  accordance  with  generally  accepted  accounting
principles, and that receipts and expenditures of the Company are
being  made  only in accordance with authorizations of management
of  the  Managing Member; and (iii) provide reasonable  assurance
regarding   prevention  or  timely  detection   of   unauthorized
acquisition,  use,  or disposition of the Company's  assets  that
could have a material effect on the financial statements.

        Management of the Managing Member performed an assessment
of  the  effectiveness  of our internal  control  over  financial
reporting as of December 31, 2010 based upon criteria in Internal
Control-Integrated   Framework  issued  by   the   Committee   of
Sponsoring  Organizations  of the Treadway  Commission  ("COSO").
Based  on  our  assessment, management  of  the  Managing  Member
determined that our internal control over financial reporting was
effective  as  of  December 31, 2010 based  on  the  criteria  in
Internal Control-Integrated Framework issued by the COSO.

ITEM 9A.  CONTROLS AND PROCEDURES.  (Continued)

        This annual report does not include an attestation report
of  our  registered  public accounting  firm  regarding  internal
control  over financial reporting.  Management's report  was  not
subject  to attestation by our registered public accounting  firm
pursuant to rules of the Securities and Exchange Commission  that
permit  us  to  provide only management's report in  this  annual
report.

         (ii)    Changes  in  Internal  Control  Over   Financial
Reporting.  During the most recent period covered by this report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our internal control over financial reporting.


ITEM 9B.  OTHER INFORMATION.

       None.


                            PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

        The registrant is a limited liability company and has  no
officers,  directors, or direct employees.  The Managing  Members
manage  and  control  the  Company's  affairs  and  have  general
responsibility  and  the  ultimate  authority  in   all   matters
affecting the Company's business.  The Managing Members  are  AEI
Fund  Management  XXI,  Inc. ("AFM"), the  Managing  Member,  and
Robert  P. Johnson, Chief Executive Officer, President  and  sole
director  of AFM, the Special Managing Member.  AFM is  a  wholly
owned  subsidiary of AEI Capital Corporation of which Mr. Johnson
is  the  majority shareholder.  AFM has only one senior financial
executive,  its  Chief Financial Officer.   The  Chief  Financial
Officer  reports  directly to Mr. Johnson and is accountable  for
his actions to Mr. Johnson.  Although Mr. Johnson and AFM require
that  all  of  their  personnel, including  the  Chief  Financial
Officer, engage in honest and ethical conduct, ensure full, fair,
accurate, timely, and understandable disclosure, comply with  all
applicable  governmental laws, rules and regulations, and  report
to  Mr. Johnson any deviation from these principles, because  the
organization  is  composed of only approximately 35  individuals,
because  the  management  of a company  by  an  entity  that  has
different  interests in distributions and income  than  investors
involves numerous conflicts of interest that must be resolved  on
a  daily  basis, and because the ultimate decision maker  in  all
instances  is Mr. Johnson, AFM has not adopted a formal  code  of
conduct.   Instead,  the materials pursuant  to  which  investors
purchase Units disclose these conflicts of interest in detail and
Mr.  Johnson,  as  the  CEO and sole director  of  AFM,  resolves
conflicts  to  the  best  of  his ability,  consistent  with  his
fiduciary obligations to AFM and the fiduciary obligations of AFM
to the Company.  The director and officers of AFM are as follows:

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
         (Continued)

        Robert  P.  Johnson, age 66, is Chief Executive  Officer,
President  and  sole director and has held these positions  since
the  formation  of AFM in August 1994, and has  been  elected  to
continue  in these positions until December 2011.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing in limited partnership  investments.   In
that capacity, he has been involved in the development, analysis,
marketing   and  management  of  public  and  private  investment
programs investing in net lease properties as well as public  and
private  investment  programs investing  in  energy  development.
Since 1971, Mr. Johnson has been the president, a director and  a
registered principal of AEI Securities, Inc., which is registered
with  the SEC as a securities broker-dealer, is a member  of  the
Financial Industry Regulatory Authority (FINRA) and is  a  member
of  the  Security Investors Protection Corporation  (SIPC).   Mr.
Johnson   has  been  president,  a  director  and  the  principal
shareholder   of  AEI  Fund  Management,  Inc.,  a  real   estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in nine limited partnerships and a managing member in five LLCs.

        Patrick  W.  Keene,  age 51, is Chief Financial  Officer,
Treasurer  and  Secretary  and has  held  these  positions  since
January  22,  2003  and  has been elected to  continue  in  these
positions  until December 2011.  Mr. Keene has been  employed  by
AEI  Fund  Management, Inc. and affiliated entities  since  1986.
Prior  to being elected to the positions above, he was Controller
of  the various entities.  From 1982 to 1986, Mr. Keene was  with
KPMG  Peat  Marwick  Certified Public Accountants,  first  as  an
auditor and later as a tax manager.  Mr. Keene is responsible for
all accounting functions of AFM and the registrant.

       Since Mr. Johnson serves as the Special Managing Member of
the  Company,  as well as the sole director of AFM,  all  of  the
duties  that might be assigned to an audit committee are assigned
to  Mr. Johnson.  Mr. Johnson is not an audit committee financial
expert, as defined.  As an officer and majority owner, through  a
parent  company, of AFM, and as the Special Managing Member,  Mr.
Johnson is not a "disinterested director" and may be subject to a
number of conflicts of interests in his capacity as sole director
of AFM.

        Before the independent auditors are engaged, Mr. Johnson,
as the sole director of AFM, approves all audit-related fees, and
all permissible nonaudit fees, for services of our auditors.

Section 16(a) Beneficial Ownership Reporting Compliance

        Under federal securities laws, the directors and officers
of  the Managing Member of the Company, and any beneficial  owner
of  more than 10% of a class of equity securities of the Company,
are  required  to report their ownership of the Company's  equity
securities  and  any changes in such ownership to the  Securities
and  Exchange Commission (the "Commission").  Specific due  dates
for  these  reports have been established by the Commission,  and
the Company is required to disclose in this Annual Report on 10-K
any  delinquent  filing of such reports and any failure  to  file
such  reports  during the fiscal year ended  December  31,  2010.
Based upon information provided by officers and directors of  the
Managing Member, all officers, directors and 10% owners filed all
reports on a timely basis in the 2010 fiscal year.


ITEM 11.  EXECUTIVE COMPENSATION.

        The Managing Member and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost  for services performed on behalf of the registrant is based
on  actual  time spent performing such services plus an  overhead
burden.   These  services include organizing the  registrant  and
arranging  for the offer and sale of Units, reviewing  properties
for acquisition and rendering administrative, property management
and  property  sales  services.  The amount and  nature  of  such
payments are detailed in Item 13 of this annual report on Form 10-
K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

        The following table sets forth information pertaining  to
the ownership of the Units by each person known by the Company to
beneficially  own  5%  or  more of the Units,  by  each  Managing
Member, and by each officer or director of the Managing Member as
of February 28, 2011:

     Name and Address                   Number of     Percent
   of Beneficial Owner                  Units Held    of Class

   AEI Fund Management XXI, Inc.            0            0%
   Robert P. Johnson                        0            0%
   Patrick W. Keene                         0            0%

   Address for all:
   1300 Wells Fargo Place
   30 East 7th Street, St. Paul, Minnesota 55101

The  Managing Members know of no holders of more than 5%  of  the
outstanding Units.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.

        The  registrant,  AFM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the Managing Member of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations  set  forth  in  the  Operating  Agreement   of   the
registrant.   Reference  is  made to  Note  3  of  the  Financial
Statements,   as  presented,  and  is  incorporated   herein   by
reference,  for  details of related party  transactions  for  the
years ended December 31, 2010 and 2009.

        Neither  the registrant, nor the Managing Member  of  the
registrant,  has a board of directors consisting of  any  members
who are "independent."  The sole director of the Managing Member,
Robert  P.  Johnson, is also the Special Managing Member  of  the
registrant,  and is the Chief Executive Officer,  and  indirectly
the  principal owner, of the Managing Member.  Accordingly, there
is  no  disinterested  board,  or other  functioning  body,  that
reviews  related party transactions, or the transactions  between
the  registrant and the Managing Members, except as performed  in
connection with the audit of its financial statements.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)

        The  limitations  included  in  the  Operating  Agreement
require  that  the  cumulative  reimbursements  to  the  Managing
Members and their affiliates for certain expenses will not exceed
an  amount  equal to the sum of (i) 20% of capital contributions,
(ii)  1% of gross revenues, plus an initial leasing fee of 3%  of
gross  revenues for the first five years of the original term  of
each lease, (iii) 3% of Net Proceeds of Sale, and (iv) 10% of Net
Cash  Flow  less  the Net Cash Flow actually distributed  to  the
Managing Members. The cumulative reimbursements subject  to  this
limitation  are reimbursements for (i) organization and  offering
expenses,  including  commissions and an Organization  Fee,  (ii)
acquisition expenses paid with proceeds from the initial offering
of  Units,  (iii)  services  provided  in  the  sales  effort  of
properties, and (iv) expenses of controlling persons and overhead
expenses  directly  attributable  to  the  forgoing  services  or
attributable  to  administrative services.  As  of  December  31,
2010, these cumulative reimbursements to the Managing Members and
their affiliates did not exceed the limitation amount.

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  Managing Members or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 2010.

Person or Entity                                       Amount Incurred From
 Receiving                      Form and Method     Inception (March 14, 2005)
Compensation                    of Compensation        To December 31, 2010

AEI Securities, Inc.  Selling Commissions equal to 10% of     $1,790,447
                      proceeds, excluding proceeds from
                      distribution reinvestments, most of
                      which were reallowed to  Participating
                      Dealers.

Managing Members      Reimbursement at Cost for other         $  916,368
and Affiliates        Organization and Offering Costs.

Managing Members      Reimbursement at Cost for all           $  278,726
and Affiliates        Acquisition Expenses.

Managing Members      Reimbursement at Cost for providing     $  704,818
Affiliates            administrative services to the Fund,
                      including all expenses related to
                      management of the Fund's properties
                      and all other transfer agency,
                      reporting, partner relations and other
                      administrative functions.

Managing Members      Reimbursement at Cost for providing     $        0
and   Affiliates      services related to the disposition
                      of the  Fund's properties.

Managing Members      3% of Net Cash Flow in any fiscal year. $  110,494


ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)

Person or Entity                                       Amount Incurred From
 Receiving                      Form and Method     Inception (March 14, 2005)
Compensation                    of Compensation        To December 31, 2010

Managing Members      1% of distributions of Net Proceeds     $        0
                      of Sale until Limited Members have
                      received an amount equal to (a) their
                      Adjusted Capital Contributions,  plus
                      (b) an amount equal to 6.5% of their
                      Adjusted Capital Contributions per
                      annum, cumulative but not compounded,
                      to the extent not  previously distributed.
                      10% of distributions of Net Proceeds of
                      Sale thereafter.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES.

        The  following  is a summary of the fees  billed  to  the
Company   by  Boulay,  Heutmaker,  Zibell  &  Co.  P.L.L.P.   for
professional  services rendered for the years ended December  31,
2010 and 2009:

     Fee Category                            2010       2009

     Audit Fees                           $  15,470   $ 15,225
     Audit-Related Fees                           0          0
     Tax Fees                                     0          0
     All Other Fees                               0          0
                                           ---------   --------
     Total Fees                           $  15,470   $ 15,225
                                           =========   ========

Audit  Fees  - Consists of fees billed for professional  services
rendered   for  the  audit  of  the  Company's  annual  financial
statements   and  review  of  the  interim  financial  statements
included  in  quarterly reports, and services that  are  normally
provided   by  Boulay,  Heutmaker,  Zibell  &  Co.  P.L.L.P.   in
connection with statutory and regulatory filings or engagements.

Audit-Related  Fees - Consists of fees billed for  assurance  and
related  services that are reasonably related to the  performance
of  the  audit  or  review of financial statements  and  are  not
reported under "Audit Fees." These services include consultations
concerning financial accounting and reporting standards.

Tax  Fees - Consists of fees billed for professional services for
federal and state tax compliance, tax advice and tax planning.

All Other Fees - Consists of fees for products and services other
than the services reported above.

Policy   for  Preapproval  of  Audit  and  Permissible  Non-Audit
Services of Independent Auditors

       Before the Independent Auditors are engaged by the Company
to render audit or non-audit services, the engagement is approved
by Mr. Johnson acting as the Company's audit committee.


                             PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

       (a) (1) A list of the financial statements contained
            herein is set forth on page 12.

       (a) (2) Schedules are omitted because of the absence of
            conditions under which they are required or because
            the required information is presented in the
            financial statements or related notes.

       (a) (3) The Exhibits filed in response to Item 601 of
            Regulation S-K are listed below.

    3.1   Certificate of Limited Liability Company  (incorporated
    by  reference to Exhibit 3.1 of the registrant's Registration
    Statement on Form SB-2 filed on May 26, 2005 [File  No.  333-
    125266]).

    3.2   Operating Agreement to the Prospectus (incorporated  by
    reference  to  Exhibit  A  of  the registrant's  Registration
    Statement  on Form SB-2 filed on October 14, 2005  [File  No.
    333-125266]).

    10.1  Assignment and Assumption of Lease and  Guaranty  dated
    April  3,  2006  between the Company and AEI Fund  Management
    XVII,  Inc.  relating  to  the Property  at  6959  East  21st
    Street,   Wichita,  Kansas  (incorporated  by  reference   to
    Exhibit 10.1 of Form 8-K filed April 5, 2006).

    10.2  Assignment and Assumption of Lease dated May  31,  2006
    between  the  Company, AEI Income & Growth Fund  24  LLC  and
    Blue  Bell Partners, LLC relating to the Property at 65 North
    University  Boulevard,  Middletown,  Ohio  (incorporated   by
    reference to Exhibit 10.2 of Form 8-K filed June 7, 2006).

    10.3  Net  Lease Agreement dated September 21,  2006  between
    the  Company,  AEI  Fund  Management  XVII,  Inc.  and  Apple
    Indiana   II  LLC  relating  to  the  Property  at  7345   E.
    Washington  Street,  Indianapolis, Indiana  (incorporated  by
    reference  to  Exhibit 10.2 of Form 8-K filed  September  26,
    2006).

    10.4  Assignment and Assumption of Lease dated  December  29,
    2006  between  the  Company, AEI Income &  Growth  Fund  XXII
    Limited  Partnership  and  AEI  Fund  Management  XVII,  Inc.
    relating  to  the  Property at 1516 South Washington  Street,
    Crawfordsville,   Indiana  (incorporated  by   reference   to
    Exhibit 10.1 of Form 8-K filed January 8, 2007).

    31.1  Certification  of Chief Executive Officer  of  Managing
    Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of Chief Financial Officer  of  Managing
    Member  pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    32    Certification  of  Chief Executive  Officer  and  Chief
    Financial Officer of Managing Member pursuant to Section  906
    of the Sarbanes-Oxley Act of 2002.


                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant duly caused  this
report  to  be signed on its behalf by the undersigned, thereunto
duly authorized.


                               AEI INCOME & GROWTH FUND 26
                               Limited Liability Company
                               By: AEI Fund Management XXI, Inc.
                                   Its Managing Member


March 25, 2011                 By:/s/ ROBERT P JOHNSON
                                      Robert  P. Johnson,
                                      President and Director
                                      (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                                  Title                      Date


/s/ROBERT P JOHNSON  President (Principal Executive Officer) March 25, 2011
   Robert P.Johnson  and Sole Director of Managing Member


/s/PATRICK W KEENE   Chief Financial Officer and Treasurer   March 25, 2011
   Patrick W.Keene   (Principal Accounting Officer)