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

                            FORM 10-Q

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

       For the quarterly period ended:  September 30, 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)

                       Not  Applicable
 (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.               [X] Yes   [ ] 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  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 Exchange Act).   [ ] Yes [X] No


                 AEI INCOME & GROWTH FUND 26 LLC

                              INDEX


Part I - Financial Information

 Item 1. Financial Statements (unaudited):

         Balance Sheet as of September 30, 2010 and December 31, 2009

         Statements for the Periods ended September 30, 2010 and 2009:

           Income

           Cash Flows

           Changes in Members' Equity (Deficit)

         Notes to Financial Statements

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

 Item 3. Quantitative and Qualitative Disclosures About Market Risk

 Item 4. Controls and Procedures

Part II - Other Information

 Item 1. Legal Proceedings

 Item 1A. Risk Factors

 Item 2. Unregistered Sales of Equity Securities and  Use  of Proceeds

 Item 3. Defaults Upon Senior Securities

 Item 5. Other Information

 Item 6. Exhibits

         Signatures

<PAGE>
                 AEI INCOME & GROWTH FUND 26 LLC
                          BALANCE SHEET
            SEPTEMBER 30, 2010 AND DECEMBER 31, 2009

                             ASSETS

                                                   2010           2009
CURRENT ASSETS:
  Cash                                         $   356,698    $   375,652

INVESTMENTS IN REAL ESTATE:
  Land                                           5,991,984      5,991,984
  Buildings and Equipment                        9,384,552      9,384,552
  Accumulated Depreciation                      (1,319,751)    (1,038,213)
                                                -----------    -----------
      Net Investments in Real Estate            14,056,785     14,338,323
                                                -----------    -----------
           Total  Assets                       $14,413,483    $14,713,975
                                                ===========    ===========

                        LIABILITIES AND MEMBERS' EQUITY

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.         $    15,579    $    22,391
  Distributions Payable                            236,083        236,177
  Unearned Rent                                     50,271         25,796
                                                -----------    -----------
      Total Current Liabilities                    301,933        284,364
                                                -----------    -----------
MEMBERS' EQUITY (DEFICIT):
  Managing Members                                 (41,063)       (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                 14,152,613     14,461,132
                                                -----------    -----------
      Total Members' Equity                     14,111,550     14,429,611
                                                -----------    -----------
        Total Liabilities and Members' Equity  $14,413,483    $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 PERIODS ENDED SEPTEMBER 30


                              Three Months Ended      Nine Months Ended
                             9/30/10      9/30/09    9/30/10     9/30/09

RENTAL INCOME              $  285,716  $  285,716  $  857,147  $  858,356

EXPENSES:
  LLC Administration -
   Affiliates                  42,897      39,679     125,983     124,174
  LLC Administration and
   Property Management  -
   Unrelated Parties            4,197       4,193      21,741      23,536
  Depreciation                 93,846      78,514     281,538     235,542
                            ----------  ----------  ----------  ----------
      Total Expenses          140,940     122,386     429,262     383,252
                            ----------  ----------  ----------  ----------

OPERATING INCOME              144,776     163,330     427,885     475,104

OTHER INCOME:
  Interest Income                 580         632       1,804       1,845
                            ----------  ----------  ----------  ----------
NET INCOME                 $  145,356  $  163,962  $  429,689  $  476,949
                            ==========  ==========  ==========  ==========

NET INCOME ALLOCATED:
  Managing Members         $    4,361  $    4,918  $   12,891  $   14,308
  Limited Members             140,995     159,044     416,798     462,641
                            ----------  ----------  ----------  ----------
                           $  145,356  $  163,962  $  429,689  $  476,949
                            ==========  ==========  ==========  ==========

NET INCOME PER LLC UNIT    $      .08  $      .09  $      .23  $      .25
                            =========   ==========  ==========  ==========

Weighted Average Units Outstanding -
    Basic and Diluted       1,827,736   1,832,736   1,829,403   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 NINE MONTHS ENDED SEPTEMBER 30


                                                   2010           2009

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                   $   429,689    $   476,949

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                  281,538        235,542
     Decrease in Receivables                             0          2,283
     Decrease in Payable to
        AEI Fund Management, Inc.                   (6,812)        (8,152)
     Increase in Unearned Rent                      24,475         24,475
                                                -----------    -----------
       Total Adjustments                           299,201        254,148
                                                -----------    -----------
       Net Cash Provided By
           Operating Activities                    728,890        731,097
                                                -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Distributions Paid to Members                   (708,437)      (717,009)
  Redemption Payments                              (39,407)             0
                                                -----------    -----------
       Net Cash Used For
          Financing Activities                    (747,844)      (717,009)
                                                -----------    -----------

NET INCREASE (DECREASE) IN CASH                    (18,954)        14,088

CASH, beginning of period                          375,652        388,653
                                                -----------    -----------
CASH, end of period                            $   356,698    $   402,741
                                                ===========    ===========


 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 NINE MONTHS ENDED SEPTEMBER 30


                                                                   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      (17,923)     (687,276)    (705,199)

  Net Income                   14,308       462,641      476,949
                              --------   -----------  ----------- ------------
BALANCE, September 30, 2009  $(25,332)  $14,661,251  $14,635,919  1,832,736.0
                              ========   ===========  =========== ============


BALANCE, December 31, 2009   $(31,521)  $14,461,132  $14,429,611  1,832,736.0

  Distributions Declared      (21,251)     (687,092)    (708,343)

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

  Net Income                   12,891       416,798      429,689
                              --------   -----------  ----------- ------------
BALANCE, September 30, 2010  $(41,063)  $14,152,613  $14,111,550  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
                       SEPTEMBER 30, 2010

(1)  The  condensed  statements included herein have been  prepared
     by  the  registrant, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to   such  rules  and  regulations,  although  the  registrant
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     registrant's latest annual report on Form 10-K.

(2)  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.

                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(2)  Organization - (Continued)

     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.

     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.

(3)  Reclassification -

     Certain  items  in  the prior period's financial  statements
     have  been  reclassified to conform  to  2010  presentation.
     These  reclassifications had no effect on Members'  capital,
     net income or cash flows.

                 AEI INCOME & GROWTH FUND 26 LLC
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(4)  Payable to AEI Fund Management, Inc. -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating  functions for the Company.  The  payable  to  AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.

(5)Fair Value Measurements -

     As  of  September  30, 2010, the Company has  no  assets  or
     liabilities measured at fair value on a recurring  basis  or
     nonrecurring basis.

ITEM 2. 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  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses to the Company as opposed to other funds they manage.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       Prior to January 1, 2009, the Company purchased properties
and  recorded them in the financial statements at cost (including
capitalized acquisition expenses).  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 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  realizable
value,  an  impairment loss is recorded to  reduce  the  carrying
value  of the property to its 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.

        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 nine months ended September 30, 2010 and 2009, the
Company  recognized  rental  income  of  $857,147  and  $858,356,
respectively.

       For the nine months ended September 30, 2010 and 2009, the
Company  incurred  LLC  administration expenses  from  affiliated
parties   of   $125,983   and  $124,174,   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  $21,741
and  $23,536,  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  nine months ended September 30, 2010 and  2009,
depreciation  expense  was $281,538 and  $235,542,  respectively.
The  increase  was  due to the Company reclassifying  the  Sports
Authority  store in Wichita, Kansas from held-for-sale status  to
held-for-use status during the fourth quarter of 2009.

       For the nine months ended September 30, 2010 and 2009, the
Company   recognized  interest  income  of  $1,804  and   $1,845,
respectively.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

         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  nine months ended September  30,  2010,  the
Company's  cash  balances  decreased  $18,954  as  a  result   of
distributions  and  redemption payments paid to  the  Members  in
excess  of cash generated from operating activities.  During  the
nine months ended September 30, 2009, the Company's cash balances
increased  $14,088 as a result of cash generated  from  operating
activities in excess of distributions paid to the Members.

        Net  cash provided by operating activities decreased from
$731,097 in 2009 to $728,890 in 2010 as a result of a decrease in
total  rental  and interest income in 2010, an  increase  in  LLC
administration and property management expenses in 2010  and  net
timing differences in the collection of payments from the tenants
and the payment of expenses.

        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 nine months ended September 30, 2010 and 2009, the
Company   declared  distributions  of  $708,343   and   $705,199,
respectively.   The  Limited  Members received  distributions  of
$687,092   and   $687,276  and  the  Managing  Members   received
distributions   of   $21,251  and  $17,923   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.

        On April 1, 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 Member's 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.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       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.

        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  2010  are
expected to be consistent with distribution rates in 2009.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 4.   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)  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.
                   PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS.

        There are no material pending legal proceedings to  which
the  Company  is  a party or of which the Company's  property  is
subject.

ITEM 1A.  RISK FACTORS.

       Not required for a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

       (a) None.

       (b) Not applicable.

        (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
period  covered by this report, the Company did not purchase  any
Units.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.

       None.

ITEM 5.   OTHER INFORMATION.

       None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.   EXHIBITS.

    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 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.


Dated:  November 10, 2010     AEI Income & Growth Fund 26 LLC
                              By:  AEI Fund Management XXI, Inc.
                              Its: Managing Member



                              By: /s/ ROBERT P JOHNSON
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ PATRICK W KEENE
                                      Patrick W. Keene
                                      Chief Financial Officer
                                      (Principal Accounting Officer)