SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549
                                
                           FORM 10-QSB
                                
           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934
                                
              For the Quarter Ended:  June 30, 1998
                                
                Commission file number:  0-14263
                                
                                
            AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1511293
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)
                                
                          (612) 227-7333
                   (Issuer's telephone number)
                                
                                
                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)
                                
Check  whether  the issuer (1) 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
                                
         Transitional Small Business Disclosure Format:
                                
                         Yes            No  [X]
                                
                                
                                
                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                                
                              INDEX
                                
                                
                                                     

PART I.  Financial Information

  Item 1.  Balance Sheet as of June 30, 1998 and December 31, 1997    

           Statements for the Periods ended June 30, 1998 and 1997:

             Income                                     

             Cash Flows                                 

             Changes in Partners' Capital               

           Notes to Financial Statements                

  Item 2.  Management's Discussion and Analysis

PART II. Other Information

  Item 1.  Legal Proceedings                          

  Item 2.  Changes in Securities                      

  Item 3.  Defaults Upon Senior Securities            

  Item 4.  Submission of Matters to a Vote of Security  Holders

  Item 5.  Other Information                          

  Item 6.  Exhibits and Reports on Form 8-K           

<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                          BALANCE SHEET
                                
               JUNE 30, 1998 AND DECEMBER 31, 1997
                                
                           (Unaudited)
                                
                             ASSETS

                                                       1998            1997

CURRENT ASSETS:
  Cash and Cash Equivalents                       $   188,883     $   174,683

INVESTMENTS IN REAL ESTATE:
  Land                                              1,877,226       1,877,226
  Buildings and Equipment                           3,249,122       3,249,122
  Accumulated Depreciation                         (1,051,809)       (999,929)
                                                   -----------     -----------
      Net Investments in Real Estate                4,074,539       4,126,419
                                                   -----------     -----------
          Total Assets                            $ 4,263,422     $ 4,301,102
                                                   ===========     ===========


                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $    15,060     $    12,719
  Distributions Payable                                93,678          92,893
  Unearned Rent                                         7,670               0
                                                   -----------     -----------
      Total Current Liabilities                       116,408         105,612
                                                   -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                    (36,629)        (36,144)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,080 Units outstanding                          4,183,643       4,231,634
                                                   -----------     -----------
     Total Partners' Capital                        4,147,014       4,195,490
                                                   -----------     -----------
       Total Liabilities and Partners' Capital    $ 4,263,422     $ 4,301,102
                                                   ===========     ===========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
                  FOR THE PERIODS ENDED JUNE 30
                                
                           (Unaudited)
                                
                                
                                Three Months Ended       Six Months Ended
                                6/30/98     6/30/97     6/30/98     6/30/97

INCOME:
   Rent                        $ 133,502   $ 132,455   $ 269,217   $ 266,767
   Investment Income               1,985       1,866       3,980       3,377
                                ---------   ---------   ---------   ---------
        Total Income             135,487     134,321     273,197     270,144
                                ---------   ---------   ---------   ---------

EXPENSES:
   Partnership Administration -
    Affiliates                    23,347      26,992      49,957      47,871
   Partnership Administration 
    and Property Management - 
    Unrelated Parties              3,123       4,374       9,229      11,921
   Depreciation                   25,939      25,939      51,880      51,879
                                ---------   ---------   ---------   ---------
        Total Expenses            52,409      57,305     111,066     111,671
                                ---------   ---------   ---------   ---------

NET INCOME                     $  83,078   $  77,016   $ 162,131   $ 158,473
                                =========   =========   =========   =========

NET INCOME ALLOCATED:
   General Partners            $     830   $     770   $   1,621   $   1,585
   Limited Partners               82,248      76,246     160,510     156,888
                                ---------   ---------   ---------   ---------
                               $  83,078   $  77,016   $ 162,131   $ 158,473
                                =========   =========   =========   =========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (7,080 and 7,085 weighted average
 Units outstanding in 1998 and 1997,
 respectively)                 $   11.62   $   10.76   $   22.67   $   22.14
                                =========   =========   =========   =========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
                  FOR THE PERIODS ENDED JUNE 30
                                
                           (Unaudited)
                                

                                                        1998          1997

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       $  162,131     $  158,473

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       51,880         51,879
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                        2,341           (564)
     Increase in Unearned Rent                           7,670              0
                                                     ----------     ----------
        Total Adjustments                               61,891         51,315
                                                     ----------     ----------
        Net Cash Provided By
        Operating Activities                           224,022        209,788
                                                     ----------     ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                       785              0
   Distributions to Partners                          (210,607)      (189,697)
                                                     ----------     ----------
        Net Cash Used For
        Financing Activities                          (209,822)      (189,697)
                                                     ----------     ----------

NET INCREASE IN CASH AND CASH EQUIVALENTS               14,200         20,091

CASH AND CASH EQUIVALENTS, beginning of period         174,683        137,141
                                                     ----------     ----------
CASH AND CASH EQUIVALENTS, end of period            $  188,883     $  157,232
                                                     ==========     ==========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
                  FOR THE PERIODS ENDED JUNE 30
                                
                           (Unaudited)
                                
                                
                                
                                                                      Limited
                                                                   Partnership
                               General      Limited                   Units
                               Partners     Partners     Total     Outstanding


BALANCE, December 31, 1996   $ (35,441)  $ 4,301,217  $ 4,265,776     7,084.63

  Distributions                 (1,897)     (187,800)    (189,697)

  Net Income                     1,585       156,888      158,473
                              ---------   -----------  -----------  -----------
BALANCE, June 30, 1997       $ (35,753)  $ 4,270,305  $ 4,234,552     7,084.63
                              =========   ===========  ===========  ===========


BALANCE, December 31, 1997   $ (36,144)  $ 4,231,634  $ 4,195,490     7,079.63

  Distributions                 (2,106)     (208,501)    (210,607)

  Net Income                     1,621       160,510      162,131
                              ---------   -----------  -----------  -----------
BALANCE, June 30, 1998       $ (36,629)  $ 4,183,643  $ 4,147,014     7,079.63
                              =========   ===========  ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                          JUNE 30, 1998
                                
                           (Unaudited)
                                

(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, 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  Partnership
     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
     Partnership's latest annual report on Form 10-KSB.
 
(2)  Organization -

     AEI  Real Estate Fund 85-A Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  Net  Lease  Management 85-A, Inc.  (NLM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  NLM,  serves  as  the
     Individual General Partner of the Partnership.  An affiliate
     of   NLM,   AEI   Fund   Management,  Inc.,   performs   the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced   operations  on  April  15,  1985  when   minimum
     subscriptions    of   1,300   Limited   Partnership    Units
     ($1,300,000)  were  accepted.   The  Partnership's  offering
     terminated  on  June 20, 1985 when the maximum  subscription
     limit  of  7,500 Limited Partnership Units ($7,500,000)  was
     reached.
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $7,500,000  and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.
     
                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners 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  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.   In the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those Partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit capital balance. Upon liquidation of the Partnership
     or  withdrawal  by  a General Partner, the General  Partners
     will  contribute to the Partnership an amount equal  to  the
     lesser of the deficit balances in their capital accounts  or
     1%  of total Limited Partners' and General Partners' capital
     contributions.
     
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  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.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the  six  months ended June 30, 1998 and  1997,  the
Partnership  recognized rental income of $269,217  and  $266,767,
respectively.   During the same periods, the  Partnership  earned
investment income of $3,980 and $3,377, respectively.

        During  the six months ended June 30, 1998 and 1997,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $49,957 and $47,871, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements  and correspondence to the Limited Partners.  During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $9,229  and $11,921, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

        As  of  June 30, 1998, the Partnership's annualized  cash
distribution  rate  was  6.50%, based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the Partnership.  AEI is currently  analyzing  its
computer hardware and software systems to determine what, if any,
resources  need to be dedicated regarding Year 2000 issues.   The
Partnership  does  not  anticipate  any  significant  operational
impact  or  incurring material costs as a result of AEI  becoming
Year 2000 compliant.


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

Liquidity and Capital Resources

         During   the  six  months  ended  June  30,  1998,   the
Partnership's cash balances increased $14,200 as the  Partnership
distributed  less  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased from $209,788 in 1997 to $224,021 in 1998.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  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 Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.   Effective  July  1, 1997, the Partnership's  distribution
rate   was   increased  from  5.85%  to  6.50%.   As  a   result,
distributions  during the first six months of  1998  were  higher
when compared to the same period in 1997.

        The  Partnership may purchase Units from Limited Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in any year more than 5% of the total number  of  Units
originally sold.  In no event shall the Partnership be  obligated
to  purchase  Units if, in the sole discretion  of  the  Managing
General  Partner,  such  purchase would  impair  the  capital  or
operation of the Partnership.

        During  1997, one Limited Partner redeemed a total  of  5
Partnership  Units for $2,199 in accordance with the  Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years,  a  total  of  fifty-two
Limited  Partners redeemed 415.37 Partnership Units for $313,122.
The   redemptions   increase  the  remaining  Limited   Partners'
ownership interest in the Partnership.

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

                                
                   PART II - OTHER INFORMATION
                                
ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.
                                
ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       None.

                   PART II - OTHER INFORMATION
                           (Continued)
                                
ITEM 5.OTHER INFORMATION

      None.

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

      a. Exhibits -
                         Description

         27    Financial Data Schedule  for  period
               ended June 30, 1998.

      b.   Reports filed on Form 8-K - None.
                                
                                
                           SIGNATURES
                                
     In accordance with the requirements of the Exchange Act, the
Registrant has caused this report to be signed on its  behalf  by
the undersigned, thereunto duly authorized.


Dated:  July 30, 1998         AEI Real Estate Fund 85-A
                              Limited Partnership
                              By: Net Lease Management 85-A, Inc.
                              Its: Managing General Partner



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



                              By: /s/ Mark E Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)