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

                                 FORM 10-Q


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

             For the Quarterly Period Ended September 30, 1996

                                    or

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

        For the transition period from             to             


                         Commission File #0-16790


                    Inland'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                 60521
(Address of principal executive office)                   (Zip code)


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


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


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







                                    -1-


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

                                Balance Sheets

                   September 30, 1996 and December 31, 1995
                                  (unaudited)

                                    Assets
                                    ------

                                                        1996          1995
                                                        ----          ----
Current assets:
  Cash and cash equivalents (Note 1).............. $   345,470       440,767
  Accounts and rents receivable...................      56,566        53,005
  Mortgage interest receivable....................      66,878        62,115
  Current portion of mortgage loans receivable....      75,733        70,546
  Current portion of deferred rent receivable.....      12,502         6,879
  Other assets....................................       6,350         3,550
                                                   ------------  ------------
    Total current assets..........................     563,499       636,862
                                                   ------------  ------------
Investment properties (including acquisition fees
    paid to Affiliates of $1,738,621) (Note 1):
  Land............................................   2,697,394     2,697,394
  Buildings and improvements......................  15,592,680    15,592,680
  Tenant improvements.............................     730,172       707,502
                                                   ------------  ------------
                                                    19,020,246    18,997,576
  Less accumulated depreciation...................   4,368,363     3,978,010
                                                   ------------  ------------
    Net investment properties.....................  14,651,883    15,019,566
                                                   ------------  ------------
Other assets:
  Mortgage loans receivable, less current portion.   8,514,191     8,571,225
  Deferred loan fees (net of accumulated
    amortization of $21,604 and $18,133 at
    September 30, 1996 and December 31, 1995,
    respectively) (Note 1)........................      24,684        28,155
  Deferred leasing fees (including $219,451
    paid to Affiliates) (net of accumulated
    amortization of $163,969 and $148,197 at
    September 30, 1996 and December 31, 1995,
    respectively) (Note 1)........................     180,418       196,190
  Deferred rent receivable, less current portion
    (Notes 1 and 2)...............................     450,344       453,113
                                                   ------------  ------------
    Total other assets............................   9,169,637     9,248,683
                                                   ------------  ------------
Total assets...................................... $24,385,019    24,905,111
                                                   ============  ============





                See accompanying notes to financial statements.


                                    -2-


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

                                Balance Sheets
                                  (continued)

                   September 30, 1996 and December 31, 1995
                                  (unaudited)

                       Liabilities and Partners' Capital
                       ---------------------------------
                                                        1996          1995
                                                        ----          ----
Current liabilities:
  Accounts payable and accrued expenses........... $    17,592        27,035
  Accrued real estate taxes.......................      45,134       117,803
  Distributions payable (Note 6)..................     192,380       199,337
  Due to Affiliates (Note 4)......................         402         9,218
  Deposits held for others........................      77,048       117,369
  Current portion of long-term debt (Note 3)......      35,934        33,410
  Current portion of deferred gain on sale of
    investment property (Note 5)..................      20,799        20,799
                                                   ------------  ------------
    Total current liabilities.....................     389,289       524,971
                                                   ------------  ------------
Deferred loan fees (Note 1).......................      71,429        77,922
Long-term debt, less current portion (Note 3).....   1,539,321     1,566,596
Deferred gain on sale of investment property,
  less current portion (Note 5)...................   2,511,286     2,526,885
                                                   ------------  ------------
  Total liabilities...............................   4,511,325     4,696,374
                                                   ------------  ------------ 
Partners' capital (Notes 1 and 6):
  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,
      59,286 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.........................  12,095,016    10,673,002
    Cumulative distributions...................... (20,634,524)  (18,877,467)
                                                   ------------  ------------
                                                    19,909,937    20,244,980
                                                   ------------  ------------
    Total Partners' capital.......................  19,873,694    20,208,737
                                                   ------------  ------------
Total liabilities and Partners' capital........... $24,385,019    24,905,111
                                                   ============  ============

                See accompanying notes to financial statements.

                                    -3-


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

                           Statements of Operations

        For the three and nine months ended September 30, 1996 and 1995
                                  (unaudited)

                                        Three months            Nine months
                                           ended                  ended
                                        September 30,          September 30,
                                        -------------          -------------
                                        1996      1995        1996     1995
                                        ----      ----        ----     ----
Income:
  Rental income (Notes 1 and 2).... $ 486,125    509,155  1,468,626 1,675,806
  Additional rental income.........     2,975      9,855     34,549    50,820
  Interest income..................   188,197    202,028    576,016   499,222
  Other income.....................      -            73       -       37,103
                                    ---------- ---------- --------- ----------
                                      677,297    721,111  2,079,191 2,262,951
                                    ---------- ---------- --------- ----------
Expenses:
  Professional services to
    Affiliates.....................     2,710      6,387      9,391    19,519
  Professional services to
    non-affiliates.................      -          -        27,305    27,350
  General and administrative
    expenses to Affiliates.........     8,911      9,819     26,381    29,017
  General and administrative
    expenses to non-affiliates.....     2,453      2,615     20,952    16,961
  Property operating expenses to
    Affiliates.....................     7,083      7,539     21,992    31,748
  Property operating expenses to
    non-affiliates.................   (36,926)   (16,496)    41,153   283,184
  Interest expense to
    non-affiliates.................    38,466     39,254    116,006   118,315
  Depreciation.....................   130,117    130,118    390,353   421,175
  Amortization.....................     6,414      6,415     19,243    19,732
                                    ---------- ---------- --------- ----------
                                      159,228    185,651    672,776   967,001
                                    ---------- ---------- --------- ----------
  Operating income.................   518,069    535,460  1,406,415 1,295,950
  Gain on sale of investment
    property.......................     5,200     13,578     15,599   168,216
                                    ---------- ---------- --------- ----------
      Net income................... $ 523,269    549,038  1,422,014 1,464,166
                                    ========== ========== ========= ==========
Net income allocated to:
  General Partner..................      -          -          -         -
  Limited Partners.................   523,269    549,038  1,422,014 1,464,166
                                    ---------- ---------- --------- ----------
    Net income..................... $ 523,269    549,038  1,422,014 1,464,166 
                                    ========== ========== ========= ==========

Net income per weighted average
  Limited Partner Unit of 59,286... $    8.83       9.26     23.99      24.70
                                    ========== ========== ========= ==========

                See accompanying notes to financial statements.


                                    -4-


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

                           Statements of Cash Flows

             For the nine months ended September 30, 1996 and 1995
                                  (unaudited)


                                                        1996          1995
                                                        ----          ----
Cash flows from operating activities:
  Net income...................................... $ 1,422,014     1,464,166 
  Adjustments to reconcile net income to net cash
      provided by operating activities:
    Gain on sale of investment property...........     (15,599)     (168,216)
    Depreciation..................................     390,353       421,175
    Amortization..................................      19,243        19,732
    Deferred rent receivable......................      (2,854)      (26,099)
    Changes in assets and liabilities:
      Accounts and rents receivable...............      (3,561)      (11,666)
      Mortgage interest receivable................      (4,763)      (33,783)
      Other current assets........................      (2,800)       (6,893)
      Accounts payable and accrued expenses.......      (9,443)      (59,924)
      Accrued real estate taxes...................     (72,669)      (16,109)
      Due to Affiliates...........................      (8,816)        2,485 
      Other current liabilities...................        -           (5,118)
      Deferred loan fees..........................      (6,493)       27,476
                                                   ------------  ------------
Net cash provided by operating activities.........   1,704,612     1,607,226
                                                   ------------  ------------
Cash flows from investing activities:
  Proceeds from sale of investment property.......        -          409,383
  Principal payments received on mortgage
    loans receivable..............................      51,847        36,153
  Capital expenditures............................     (22,670)      (14,509)
                                                   ------------  ------------
Net cash provided by investing activities.........      29,177       431,027
                                                   ------------  ------------
Cash flows from financing activities:
  Cash distributions..............................  (1,764,014)   (1,780,199)
  Deposits held for others........................     (40,321)      (37,058)
  Principal payments of long-term debt............     (24,751)      (22,460)
                                                   ------------  ------------
Net cash used in financing activities.............  (1,829,086)   (1,839,717)
                                                   ------------  ------------
Net increase (decrease) in cash and cash
  equivalents.....................................     (95,297)      198,536
Cash and cash equivalents at beginning of period..     440,767       783,288
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $   345,470       981,824
                                                   ============  ============





                See accompanying notes to financial statements.


                                    -5-


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

                           Statements of Cash Flows
                                  (continued)

             For the nine months ended September 30, 1996 and 1995
                                  (unaudited)


                                                        1996          1995
                                                        ----          ---- 
Supplemental disclosure of non-cash investing activities:

  Cash paid for interest.......................... $   116,207       118,497 
                                                   ============  ============

Sale of investment property:
  Mortgage loans receivable.......................        -       (3,789,704)
  Reduction of investment in property.............        -        3,683,157
  Reduction of accumulated depreciation related
    to investment property sold...................        -         (812,990)
  Gain on sale....................................        -          168,216
  Deferred gain on sale...........................        -        1,160,704
                                                   ------------  ------------
    Proceeds from sale of investment property..... $      -          409,383
                                                   ============  ============





























                See accompanying notes to financial statements.


                                    -6-


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

                         Notes to Financial Statements

                              September 30, 1996
                                  (unaudited)



Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1995, which are
included  in  the  Partnership's  1995   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.    The  Partnership has 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.
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.  Inland Real Estate Investment Corporation is the General Partner.

The preparation of financial  statements  in conformity with generally accepted
accounting principals 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. 

The Partnership's policy is to reduce  the cost basis of investment properties,
including deferred leasing fees and  deferred rent receivable, to its estimated
net realizable value when the investment properties are judged to have suffered
an impairment in value that is  other than temporary.  Estimated net realizable
value is measured by the recoverability of the Partnership's investment through
expected future cash flows on an  undiscounted  basis.  Net realizable value is
inherently subjective and is  based  on  management's  best estimate of current
conditions and assumptions about expected future conditions, including lease-up
periods,  rental  rates,  interest  rates  and  capitalization  rates.    As of
September 30, 1996, no reduction to the cost basis of the investment properties
has been recorded  as  the  estimated  net  realizable  value of the investment
properties exceeds their costs basis.

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


                                    -7-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1996
                                  (unaudited)



Depreciation expense  is  computed  using  the  straight-line  method  over the
following estimated useful lives:
                                                   Years
                                                   -----
        Buildings and improvements................ 30 to 40
        Furniture and fixtures.................... 5 to 12
        Tenant improvements....................... lease term

Maintenance  and  repair  expenses  are  charged  to  operations  as  incurred.
Significant improvements are capitalized  and  depreciated over their estimated
useful lives.

The Partnership  considers  all  highly  liquid  investments  purchased  with a
maturity of three months or less to be cash equivalents and are carried at cost
which approximates fair value due to the short maturity of these instruments.

Disclosure of the estimated  fair  value  of  financial  instruments in made in
accordance with the requirements of Statement of Financial Accounting Standards
No.  107,  "Disclosures  About  Fair  Value  of  Financial  Instruments."   The
estimated fair value amounts  have  been  determined  by using available market
information and  appropriate  valuation  methodologies.   However, considerable
judgment  is  necessarily  required  in  interpreting  market  data  to develop
estimates of fair value.

The fair value estimates presented herein are based on information available to
management as of September 30, 1996,  but  may not necessarily be indicative of
the amounts that the Partnership  could  realize  in a current market exchange.
The use of different  assumptions  and/or  estimation  methodologies may have a
material effect on the estimated  fair  value  amounts.  Although management is
not aware of any  factors  that  would  significantly affect the estimated fair
value amounts, such amounts have not been comprehensively revalued for purposes
of these financial statements since  that  date,  and current estimates of fair
value may differ significantly from the amounts presented herein. 

The fair value of the  mortgage  loans receivable and related mortgage interest
receivable is based upon contractual payments to be received and current market
interest  rates  for  issuance  of   mortgage  loans  with  similar  terms  and
maturities.  The estimated fair value of mortgage loans receivable at September
30, 1996 approximates carrying value.








                                    -8-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1996
                                  (unaudited)



The fair value of the mortgage  loan payable is based upon contractual payments
to be made and interest rates  that  are currently available to the Partnership
for the issuance of  debt  with  similar  terms  and remaining maturities.  The
estimated fair  value  of  the  mortgage  loan  payable  at  September 30, 1996
approximates carrying value.

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

Loan fees relating to the mortgage  loans receivable are deferred and amortized
as yield adjustments on  a  straight-line  basis  over  the life of the related
mortgage loan receivable which approximates the effective interest rate method.

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

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

Statement of  Financial  Accounting  Standards  No.  121,  "Accounting  for the
Impairment of Long-Lived Assets to Be Disposed Of" was issued in March 1995 and
is effective  for  fiscal  years  beginning  after  December  15,  1995.   This
pronouncement is not  expected  to  have  a  material  effect  on the financial
position or results of operations of the Partnership.

In  the  opinion  of  management,  the  financial  statements  contain  all the
adjustments necessary, which  are  of  a  normal  recurring  nature, to present
fairly the  financial  position  and  results  of  operations  for  the periods
presented herein.  Results of interim periods are not necessarily indicative of
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  using  the  effective  monthly rent, which is the
average monthly rent for the entire period  of occupancy during the term of the
lease.  The accompanying financial  statements  includes $2,854 and $26,099 for
1996 and 1995, respectively, of rental  income  for the period of occupancy for
which stepped  rent  increases  apply  and  $462,846  and  $459,992  in related
accounts  receivable  as  of  September   30,   1996  and  December  31,  1995,
respectively.  These amounts will  be  collected  over the terms of the related
leases as scheduled rent payments are made.  


                                    -9-


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

                         Notes to Financial Statements
                                  (continued)

                              September 30, 1996
                                  (unaudited)



(3) Long-Term Debt

On February 26, 1992, the Partnership obtained a $1,700,000 loan collateralized
by the Rantoul Wal-Mart to replace the  line of credit obtained for the purpose
of upgrading the McHenry Shopping  Center.  The  loan bears an interest rate of
9.75% and requires monthly principal  and  interest payments of $15,662 through
March 2002, when all unpaid  principal  and  interest  is due.  The Partnership
paid a $17,000 loan  fee  to  the  lender  and  incurred $29,288 of other costs
associated with funding the loan.


(4) 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 to Affiliates and  general and administrative expenses to
Affiliates, of which $402 and $9,218  remained unpaid at September 30, 1996 and
December 31, 1995, 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  $21,992  and  $31,748  for  the nine months ended
September 30, 1996 and 1995, respectively, all of which has been paid.


(5) Sale of Schaumburg Terrace Apartment Complex, Schaumburg, Illinois

As of  December  31,  1995,  the  Partnership  sold  the  thirty-eight six-unit
buildings comprising the Schaumburg  Terrace  apartment complex to unaffiliated
third parties through a  condominium  sales  program.  The Partnership provided
financing to  the  purchasers  of  thirty-seven  of  the thirty-eight buildings
totaling $8,701,439.  The  principal  balances  of the thirty-seven loans range
from $210,640 to $255,891 and  require  monthly principal and interest payments
of $67,763 with an interest rate of 8.625%  per annum for ten years (based on a
thirty year amortization).  Deferred gain  will  be recognized over the life of
the related mortgage loans as principal payments are received.  As of September
30, 1996, the balance of the deferred gain was $2,532,085.


(6) Subsequent Events

During October 1996, the  Partnership  paid  a  distribution of $192,380 to the
Limited Partners.



                                   -10-


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

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, of which
$25,831,542 had been invested in seven  properties.  In addition, proceeds were
used to repay advances from the  General Partner, pay offering and organization
costs and make distributions to the Limited Partners.

At September  30,  1996,  the  Partnership  had  cash  and  cash equivalents of
$345,470. The Partnership  intends  to  use  such  funds  for distributions and
working capital requirements.

To the extent that cash flow  is  insufficient  to meet the required minimum 8%
annualized return to  investors,  as  well  as  any  other financial 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.

Results of Operations

As of September 30, 1996, the  Partnership owns six operating properties.  Five
of these properties were leased  on  a  "triple-net" basis which means that all
expenses of the property are  passed  through  to  the tenant.  The Partnership
also owns a shopping center, McHenry  Plaza.  The leases of the shopping center
provide that the Partnership  be  responsible  for maintenance of the structure
and the parking lot and the  tenants  are required to reimburse the Partnership
for portions of insurance, real estate taxes and common area maintenance.

Overall, rental and other income, property operating expenses to Affiliates and
non-affiliates and depreciation decreased for  the  three and nine months ended
September 30, 1996, as compared  to  the  three and nine months ended September
30, 1995, primarily due to the  sales  program at Schaumburg Terrace.  However,
this decrease was partially offset by  an increase in interest income earned by
the Partnership on the  related  financing  extended  by the Partnership to the
purchasers.  In addition,  rental  income  decreased  at  McHenry Plaza for the
three and nine months ended September  30,  1996,  as compared to the three and
nine months ended September 30,  1995,  due  to tenants representing 24% of the
center vacating their spaces.

Professional services to Affiliates  decreased  for  the  three and nine months
ended September 30,  1996,  as  compared  to  the  three  and nine months ended
September 30, 1995, due to decreases  in accounting and legal services required
by the Partnership.

General and administrative expenses to  Affiliates  decreased for the three and
nine months ended September 30, 1996, as  compared to the three and nine months
ended September  30,  1995,  due  to  decreases  in  postage,  data processing,
investor services and  mortgage  servicing  fees.    General and administrative
expenses to non-affiliates increased  for  the  nine months ended September 30,
1996, as compared to  the  nine  months  ended  September  30,  1995, due to an
increase in the Illinois Replacement Tax owed by the Partnership in 1996.


                                   -11-


The gain on the sale of investment property 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.

The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1995 and 1996:

                                    1995                        1996          
                            at    at    at    at        at    at    at    at
      Properties           03/31 06/30 09/30 12/31     03/31 06/30 09/30 12/31

McHenry Plaza               84%   84%   86%   86%       62%   62%   62%
McHenry, Illinois

Douglas Living &
Retirement Center          100%  100%  100%  100%      100%  100%  100%  
Mattoon, Illinois

Hillside Living Center     100%  100%  100%  100%      100%  100%  100%  
Yorkville, Illinois

Scandinavian Health Spa    100%  100%  100%  100%      100%  100%  100%  
Westlake, Ohio

Schaumburg Terrace          86%* 100%*  N/A   N/A       N/A   N/A   N/A  
Schaumburg, Illinois

Rantoul Wal-Mart           100%  100%  100%  100%      100%  100%  100%  
Rantoul, Illinois

Duncan Wal-Mart            100%  100%  100%  100%      100%  100%  100%  
Duncan, Oklahoma

* Represents  occupancy  of  the  remaining  condominium  units  owned  by  the
  Partnership at the end of the quarter.


                          PART II - Other Information

Items 1 through 5 are omitted because  of the absence of conditions under which
they are required.

Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         (27) Financial Data Schedule

     (b) Reports on Form 8-K:

         None






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                                  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: November 13, 1996


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: November 13, 1996


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: November 13, 1996



















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