UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM 10-Q

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

For the Quarterly Period Ended March 31, 2001or

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

For the transition period from __________ to __________
Commission File #0-16790Inland's Monthly Income Fund, L.P.(Exact name of registrant as specified in its charter)

|Delaware                                   | #36-3525989                            
|------------------------------------------ | ---------------------------------------
|(State or other jurisdiction               | (I.R.S. Employer Identification Number)
|of incorporation or organization)          |                                        
|                                           |                                        
|                                           |                                        
|2901 Butterfield Road, Oak Brook, Illinois | 60523                                  
|(Address of principal executive office)    | (Zip code)                             

Registrant's telephone number, including area code:  630-218-8000N/A
(Former name, former address and former fiscal
year, if changed since last report)

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



---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
March 31, 2001 and December 31, 2000
(unaudited)

Assets

|                                                                                                                                                                                       |   | 2001       | 2000      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------- | ----------
|Current assets:                                                                                                                                                                        |   |            |           
|Cash and cash equivalents                                                                                                                                                              | $ | 1,254,232  | 836,505   
|Accounts and rents receivable                                                                                                                                                          |   | 93,420     | 20,278    
|Mortgage interest receivable                                                                                                                                                           |   | 24,849     | 23,766    
|Current portion of mortgage loans receivable                                                                                                                                           |   | 37,547     | 43,424    
|Current portion of deferred rent receivable                                                                                                                                            |   | 128,308    | 128,305   
|Other assets                                                                                                                                                                           |   | 289        | 289       
|                                                                                                                                                                                       |   |            |           
|Total current assets                                                                                                                                                                   |   | 1,538,645  | 1,052,567 
|                                                                                                                                                                                       |   |            |           
|Investment properties (including acquisition fees paid to Affiliates   of $1,278,383, as of March 31, 2001 and December 31, 2000:                                                      |   |            |           
|Land                                                                                                                                                                                   |   | 2,066,234  | 2,066,234 
|Buildings and improvements                                                                                                                                                             |   | 9,998,920  | 9,998,920 
|Tenant improvements                                                                                                                                                                    |   | 793,112    | 793,112   
|                                                                                                                                                                                       |   |            |           
|                                                                                                                                                                                       |   | 12,858,266 | 12,858,266
|Less accumulated depreciation                                                                                                                                                          |   | 4,208,145  | 4,127,671 
|                                                                                                                                                                                       |   |            |           
|Net investment properties                                                                                                                                                              |   | 8,650,121  | 8,730,595 
|                                                                                                                                                                                       |   |            |           
|Other assets:                                                                                                                                                                          |   |            |           
|Mortgage loans receivable, less current portion                                                                                                                                        |   | 2,800,004  | 3,263,144 
|Deferred loan fees (net of accumulated amortization of $80,045     and $78,515 at March 31, 2001 and December 31, 2000,     respectively)                                              |   | 18,865     | 20,395    
|Deferred leasing fees (including $219,451 paid to Affiliates) (net     of accumulated amortization of $313,298 and $311,233 at     March 31, 2001 and December 31, 2000, respectively) |   | 31,089     | 33,154    
|Deferred rent receivable, less current portion (Note 2)                                                                                                                                |   | 70,771     | 70,131    
|                                                                                                                                                                                       |   |            |           
|Total other assets                                                                                                                                                                     |   | 2,920,729  | 3,386,824 
|                                                                                                                                                                                       |   |            |           
|Total assets                                                                                                                                                                           | $ | 13,109,495 | 13,169,986



See accompanying notes to financial statements.

---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
(continued)
March 31, 2001 and December 31, 2000
(unaudited)Liabilities and Partners' Capital

|                                                                                                                                                                 |   | 2001         | 2000        
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------ | ------------
|Current liabilities:                                                                                                                                             |   |              |             
|Accounts payable and accrued expenses                                                                                                                            | $ | 44,902       | -           
|Accrued real estate taxes                                                                                                                                        |   | 3,125        | 2,500       
|Distributions payable (Note 4)                                                                                                                                   |   | 127,762      | 127,412     
|Due to Affiliates (Note 3)                                                                                                                                       |   | 2,109        | 9,211       
|Deposits held for others                                                                                                                                         |   | 141,685      | 127,929     
|Current portion of deferred gain on sale of investment property                                                                                                  |   | 7,648        | 9,141       
|                                                                                                                                                                 |   |              |             
|Total current liabilities                                                                                                                                        |   | 327,231      | 276,193     
|                                                                                                                                                                 |   |              |             
|Deferred loan fees                                                                                                                                               |   | 11,505       | 14,099      
|Long-term debt                                                                                                                                                   |   | 1,515,000    | 1,515,000   
|Commission payable to Affiliates                                                                                                                                 |   | 151,200      | 151,200     
|Deferred gain on sale of investment property, less current portion                                                                                               |   | 829,272      | 976,026     
|                                                                                                                                                                 |   |              |             
|Total liabilities                                                                                                                                                |   | 2,834,208    | 2,932,518   
|                                                                                                                                                                 |   |              |             
|Partners' capital:                                                                                                                                               |   |              |             
|General Partner:                                                                                                                                                 |   |              |             
|Capital contribution                                                                                                                                             |   | 500          | 500         
|Supplemental Capital Contributions                                                                                                                               |   | 2,095,863    | 2,095,863   
|Supplemental capital distributions to Limited Partners                                                                                                           |   | (2,095,863)  | (2,095,863) 
|Cumulative net loss                                                                                                                                              |   | (36,743)     | (36,743)    
|                                                                                                                                                                 |   |              |             
|                                                                                                                                                                 |   | (36,243)     | (36,243)    
|Limited Partners:                                                                                                                                                |   |              |             
|Units of $500. Authorized 60,000 Units, 59,285.65 Units outstanding (net       of offering costs of $3,289,242, of which $388,902 was paid to       
Affiliates) |   | 26,353,582   | 26,353,582  
|Supplemental Capital Contributions from General Partner                                                                                                          |   | 2,095,863    | 2,095,863   
|Cumulative net income                                                                                                                                            |   | 22,665,965   | 22,257,224  
|Cumulative distributions                                                                                                                                         |   | (40,803,880) | (40,432,958)
|                                                                                                                                                                 |   |              |             
|                                                                                                                                                                 |   | 10,311,530   | 10,273,711  
|                                                                                                                                                                 |   |              |             
|Total Partners' capital                                                                                                                                          |   | 10,275,287   | 10,237,468  
|                                                                                                                                                                 |   |              |             
|Total liabilities and Partners' capital                                                                                                                          | $ | 13,109,495   | 13,169,986  



See accompanying notes to financial statements.

---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Operations
For the three months ended March 31, 2001 and 2000
(unaudited)

|                                                                                                              |   | 2001    | 2000   
|------------------------------------------------------------------------------------------------------------- | - | ------- | -------
|                                                                                                              |   |         |        
|Income:                                                                                                       |   |         |        
|Rental income (Note 2)                                                                                        | $ | 422,100 | 514,126
|Additional rental income                                                                                      |   | -       | 11,683 
|Interest income                                                                                               |   | 77,881  | 127,493
|Other income                                                                                                  |   | 5,740   | 12,654 
|                                                                                                              |   |         |        
|                                                                                                              |   | 505,721 | 665,956
|Expenses:                                                                                                     |   |         |        
|Professional services to Affiliates                                                                           |   | 4,681   | 2,129  
|Professional services to non-affiliates                                                                       |   | 23,653  | 22,975 
|General and administrative expenses to Affiliates                                                             |   | 8,380   | 10,380 
|General and administrative expenses to non-affiliates                                                         |   | 46,179  | 23,689 
|Property operating expenses to Affiliates                                                                     |   | 5,264   | 9,301  
|Property operating expenses to non-affiliates                                                                 |   | 46,602  | 76,826 
|Interest expense to non-affiliates                                                                            |   | 26,399  | 44,047 
|Depreciation                                                                                                  |   | 80,474  | 126,970
|Amortization                                                                                                  |   | 3,595   | 8,038  
|                                                                                                              |   |         |        
|                                                                                                              |   | 245,227 | 324,355
|                                                                                                              |   |         |        
|Operating income                                                                                              |   | 260,494 | 341,601
|Gain on sale of investment property                                                                           |   | 148,247 | 313,215
|                                                                                                              |   |         |        
|Net income                                                                                                    | $ | 408,741 | 654,816
|                                                                                                              |   |         |        
|Net income allocated to:                                                                                      |   |         |        
|General Partner                                                                                               | $ | -       | -      
|Limited Partners                                                                                              |   | 408,741 | 654,816
|                                                                                                              |   |         |        
|Net income                                                                                                    | $ | 408,741 | 654,816
|                                                                                                              |   |         |        
|Net income per Unit allocated to Limited Partners per weighted average Limited Partnership Units of 59,285.65 | $ | 6.89    | 11.05  



See accompanying notes to financial statements.

---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Cash Flows
For the three months ended March 31, 2001 and 2000
(unaudited)

|                                                                                      |   | 2001      | 2000       
|------------------------------------------------------------------------------------- | - | --------- | -----------
|Cash flows from operating activities:                                                 |   |           |            
|Net income                                                                            | $ | 408,741   | 654,816    
|Adjustments to reconcile net income to net cash provided by operating     activities: |   |           |            
|Gain on sale of investment property                                                   |   | (148,247) | (313,215)  
|Depreciation                                                                          |   | 80,474    | 126,970    
|Amortization                                                                          |   | 3,595     | 8,038      
|Changes in assets and liabilities:                                                    |   |           |            
|Accounts and rents receivable                                                         |   | (73,142)  | (5,076)    
|Interest receivable                                                                   |   | (1,083)   | 6,363      
|Other current assets                                                                  |   | -         | 649        
|Deferred rent receivable                                                              |   | (643)     | 17,968     
|Accounts payable and accrued expenses                                                 |   | 44,902    | 45,839     
|Accrued real estate taxes                                                             |   | 625       | 16,361     
|Due to Affiliates                                                                     |   | (7,102)   | 8,431      
|Deferred loan fees                                                                    |   | (2,594)   | (5,688)    
|Net cash provided by operating activities                                             |   | 305,526   | 561,456    
|Cash flows from investing activities:                                                 |   |           |            
|Principal payments received on mortgage loans receivable                              |   | 469,017   | 1,126,849  
|Net cash provided by investing activities                                             |   | 469,017   | 1,126,849  
|Cash flows from financing activities:                                                 |   |           |            
|Cash distributions                                                                    |   | (370,572) | (1,216,435)
|Deposits held for others                                                              |   | 13,756    | 2,114      
|Net cash used in financing activities                                                 |   | (356,816) | (1,214,321)
|Net increase in cash and cash equivalents                                             |   | 417,727   | 473,984    
|Cash and cash equivalents at beginning of period                                      |   | 836,505   | 1,299,088  
|                                                                                      |   |           |            
|Cash and cash equivalents at end of period                                            | $ | 1,254,232 | 1,773,072  
|                                                                                      |   |           |            
|Supplemental disclosure of non-cash investing activities:                             |   |           |            
|Cash paid for interest                                                                | $ | 26,399    | 29,042     
|                                                                                      |   |           |            

See accompanying notes to financial statements.

---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 2001
(unaudited)

Readers of this Quarterly Report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2000, which are included in the Partnership's 2000 Annual Report, as certain footnote disclosures
which would substantially duplicate those contained in such audited financial statements have been omitted from this Report.



(1)  Organization and Basis of Accounting

Inland's Monthly Income Fund, L.P. (the "Partnership"), was formed on March 26, 1987 pursuant to the Delaware Revised Uniform Limited Partnership Act, to invest in improved residential, retail, industrial and other income producing properties.  On August
3, 1987, the Partnership commenced an Offering of 50,000 (subject to an increase up to 60,000) Limited Partnership Units ("Units") pursuant to a Registration Statement under the Securities Act of 1933. The Offering terminated on August 3, 1988, with total
sales of 59,999 Units at $500 per Unit, resulting in gross offering proceeds of $29,999,500, not including the General Partner's contribution of $500.   All of the holders of these Units were admitted to the Partnership.  Inland Real Estate Investment
Corporation is the General Partner.  The Limited Partners of the Partnership share in the benefits of ownership of the Partnership's real property investments in proportion to the number of Units held. The Partnership has repurchased a total of 713 Units
for $356,676 from various Limited Partners through the Unit Repurchase Program.  There are no funds remaining for the repurchase of Units through this program.

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

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



(2)  Deferred Rent Receivable

Certain tenant leases contain provisions providing for stepped rent increases.  Generally accepted accounting principles require that rental income be recorded for the period of occupancy on a straight-line basis.   The accompanying financial statements
include an increase of $643 and a decrease of $17,968 for 2001 and 2000, respectively, of rental income for the period of occupancy for which stepped rent increases apply and $199,079 and $198,436 in related deferred rent receivable as of March 31, 2001
and December 31, 2000, respectively.  These amounts will be collected over the terms of the related leases as scheduled rent payments are made.



Elite, the tenant of the Douglas Living and Retirement Center and the Hillside Living Center, failed to make the deferred rental payment, which was due on February 1, 2001.  The General Partner and Elite are discussing a possible rent
reduction requested by Elite.  Elite's request includes an initial rent concession, a partial reduction of the guaranty and an agreement to pay the deferred rent which is owed.

---

INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 2001
(unaudited)

(3)  Transactions with Affiliates

The General Partner and its Affiliates are entitled to reimbursement for salaries and expenses of employees of the General Partner and its Affiliates relating to the administration of the Partnership.  Such costs are included in professional services and
general and administrative expenses to Affiliates, of which $2,109 and $9,211 was unpaid at March 31, 2001 and December 31, 2000, respectively.

An Affiliate of the General Partner is entitled to receive Property Management Fees for management and leasing services.  The Partnership has incurred property management fees of $5,264 and $9,301 for the three months ended March 31, 2001 and 2000,
respectively.



In connection with the sale of McHenry Plaza Shopping Center on July 19, 2000, the Partnership recorded $68,700 of sales commission payable to an Affiliate of the General Partner.  Such commission has been deferred until the Limited
Partners receive their Original Capital plus a return as specified in the Partnership Agreement.



In connection with the sale of Rantoul Walmart on August 5, 2000, the Partnership recorded $82,500 of sales commission payable to an Affiliate of the General Partner.  Such commission has been deferred until the Limited Partners
receive their Original Capital plus a return as specified in the Partnership Agreement.



(4)  Subsequent Events

During April 2001, the Partnership paid a distribution of $127,762 to the Limited Partners.

---

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

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



Liquidity and Capital Resources

On August 3, 1987, the Partnership commenced an Offering of 50,000 (increased to 60,000) Limited Partnership Units pursuant to a Registration Statement on Form S-11 under the Securities Act of 1933. The Offering terminated on August 3, 1988, with total
sales of 59,999 Units at $500 per Unit, resulting in gross offering proceeds of $29,999,500, not including the General Partner's contribution of $500. All of the holders of these Units have been admitted to the Partnership.  The Partnership acquired seven
properties utilizing $25,831,542 of capital proceeds collected.  During 1994 and 1995, the Partnership sold the thirty-eight six-unit condominium buildings comprising the Schaumburg Terrace condominium complex.  Also, the Partnership sold one of the three
lots adjacent to the Hillside Living Center during September 1997. As of March 31, 2001, cumulative distributions to Limited Partners totaled $40,803,880, including $2,095,863 of Supplemental Capital Contributions from the General Partner, which
represents distributable cash flow from the properties. The Partnership repurchased 713 Units for $356,676 from various Limited Partners through the Unit Repurchase Program.  There are no funds remaining for the repurchase of Units through this program.

As of March 31, 2001, the Partnership had cash and cash equivalents of $1,254,232 which includes approximately $138,000 for the payment of real estate taxes for Douglas and Hillside Living Centers.  Since January 1, 2001, the Partnership received
prepayments on two of the fifteen remaining mortgage loans receivable on the six-unit condominium buildings comprising the Schaumburg Terrace condominium complex.   Repayment proceeds from these prepayments totaled approximately $470,000. The Partnership
intends to use these proceeds for future distributions and working capital requirements.

The properties owned by the Partnership, along with the interest received on the Schaumburg Terrace mortgage receivables, are generating sufficient cash flow to meet the 8% annualized distributions to the Limited Partners (paid monthly), in addition to
covering all the operating expenses of the Partnership. To the extent that the cash flow is insufficient to meet the Partnership's needs, the Partnership may rely on Supplemental Capital Contributions from the General Partner, advances from Affiliates of
the General Partner, other short-term financing, or may sell one or more of the properties.

On April 30, 1999, the Partnership refinanced the existing $1,700,000 loan collateralized by the Rantoul Wal-Mart.  The replacement loan was for $2,500,000 and was collateralized by the Rantoul Wal-Mart and the Duncan Wal-Mart.  Due to the sale of the
Rantoul Wal-Mart, $985,000 was repaid in November 2000. The replacement loan bears an interest rate of 6.97% as compared to the interest rate of 9.75% on the original loan.   The replacement loan requires monthly interest only payments and will mature on
April 30, 2004.



Results of Operations

As of March 31, 2001, the Partnership owns four operating properties which are leased on a "triple-net" basis which means that all expenses of the property are passed through to the tenant.

During 2001, the Partnership received prepayments on two of the fifteen remaining mortgage loans receivable on the six-unit condominium buildings comprising the Schaumburg Terrace condominium complex which the Partnership had sold during 1994 and 1995.
The gain on the sale of investment property recorded for the three months ended March 31, 2001 and 2000 is the result of deferred gain from the Schaumburg Terrace condominium sales being recognized as cash is received on the related financing extended by
the Partnership to the individual purchasers.



Rental income, additional rental income, property operating expenses to Affiliates and non-affiliates and depreciation decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to
the sale of McHenry Plaza Shopping Center and the Rantoul Wal-Mart. This decrease was partially offset by an increase as a result the Partnership's management of the Douglas Towers apartment complex.  During January 2000, the leases with Elite were
amended and extended for terms of five years each.  As part of the lease extension on the Douglas Living and Retirement Center, Elite requested that they be released from the management of Douglas Towers, the 35-unit retirement apartment center.  As Elite
did not request any additional consideration, such as a rent reduction, the Partnership agreed and took over management of the apartments in May 2000.  The Partnership is marketing the apartment center for sale but has received no viable offers.

Elite, the tenant of the Douglas Living and Retirement Center and the Hillside Living Center, failed to make the deferred rental payment, which was due on February 1, 2001.  The General Partner and Elite are discussing a possible rent
reduction requested by Elite.  Elite's request includes an initial rent concession, a partial reduction of the guaranty and an agreement to pay the deferred rent which is owed.

Professional services to Affiliates increased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to an increase in accounting services.



General and administrative expenses to Affiliates decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to a decrease in postage and data processing expenses.
General and administrative expenses to non-affiliates increased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to an increase in the Illinois replacement tax as a result of the sale of McHenry Shopping
Center and the Rantoul Wal-Mart in 2000.



Interest expense to non-affiliates decreased for the three months ended March 31, 2001, as compared to the three months ended March 31, 2000, due to the payoff of $985,000 of long-term debt in November 2000 as a result of the sale of
the Rantoul Wal-Mart.

The following is a list of approximate occupancy levels for the Partnership's investment properties as of the end of each quarter during 2000 and 2001:  N/A indicates the property was not owned at the end of the quarter.

|                                     | 2000  |       | 2001 
|------------------------------------ | ----- | ----- | -----
|Properties                           | 03/31 | 06/30 | 09/30
|                                     |       |       |      
|McHenry Plaza                        | 89%   | 89%   | N/A  
|McHenry, Illinois                    |       |       |      
|                                     |       |       |      
|Douglas Living &   Retirement Center | 100%  | 100%  | 100% 
|Mattoon, Illinois                    |       |       |      
|                                     |       |       |      
|Hillside Living Center               | 100%  | 100%  | 100% 
|Yorkville, Illinois                  |       |       |      
|                                     |       |       |      
|Scandinavian Health Spa              | 100%  | 100%  | 100% 
|Westlake, Ohio                       |       |       |      
|                                     |       |       |      
|Rantoul Wal-Mart                     | 100%  | 100%  | 100% 
|Rantoul, Illinois                    |       |       |      
|                                     |       |       |      
|Duncan Wal-Mart                      | 100%  | 100%  | 100% 
|Duncan, Oklahoma                     |       |       |      

PART II - Other Information

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

---

SIGNATURES

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





|      | INLAND'S MONTHLY INCOME FUND, L.P.       
|----- | -----------------------------------------
|      |                                          
|By:   | Inland Real Estate Investment Corporation
|      | General Partner                          
|      |                                          
|      |                                          
|      | /S/ ROBERT D. PARKS                      
|      |                                          
|By:   | Robert D. Parks                          
|      | Chairman                                 
|Date: | May 15, 2001                             
|      |                                          
|      |                                          
|      | /S/ PATRICIA A. DELROSSO                 
|      |                                          
|By:   | Patricia A. DelRosso                     
|      | Senior Vice President                    
|Date: | May 15, 2001                             
|      |                                          
|      |                                          
|      | /S/ KELLY TUCEK                          
|      |                                          
|By:   | Kelly Tucek                              
|      | Principal Financial Officer and          
|      | Principal Accounting Officer             
|Date: | May 15, 2001