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 March 31, 1999

                                      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                 60523
(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

                     March 31, 1999 and December 31, 1998
                                  (unaudited)

                                    Assets
                                    ------

                                                       1999          1998
Current assets:                                        ----          ----
  Cash and cash equivalents (Note 1).............. $ 1,262,168       681,003
  Accounts and rents receivable...................      41,656        35,664
  Mortgage interest receivable....................      54,015        56,681
  Current portion of mortgage loans receivable....      75,968        79,187
  Current portion of deferred rent receivable.....       4,819         4,818
  Other assets....................................       3,165         2,670 
                                                   ------------  ------------
Total current assets..............................   1,441,791       860,023 
                                                   ------------  ------------
Investment properties (including acquisition
    fees paid to Affiliates of $1,738,621)
    (Notes 1 and 3):
  Land............................................   2,672,620     2,672,620
  Buildings and improvements......................  15,592,680    15,592,680
  Tenant improvements.............................     775,947       775,947 
                                                   ------------  ------------
                                                    19,041,247    19,041,247
  Less accumulated depreciation...................   5,648,835     5,522,909 
                                                   ------------  ------------
Net investment properties.........................  13,392,412    13,518,338 
                                                   ------------  ------------
Other assets:
  Mortgage loans receivable, less current portion.   6,704,001     7,184,451
  Deferred loan fees (net of accumulated
    amortization of $33,176 and $32,019 at
    March 31, 1999 and December 31, 1998,
    respectively) (Note 1)........................      13,112        14,269
  Deferred leasing fees (including $219,451
    paid to Affiliates) (net of accumulated
    amortization of $216,544 and $211,287 at
    March 31, 1999 and December 31, 1998,
    respectively) (Note 1)........................     127,843       133,100
  Deferred rent receivable, less current portion
    (Notes 1 and 2)...............................     384,375       396,387 
                                                   ------------  ------------
Total other assets................................   7,229,331     7,728,207 
                                                   ------------  ------------
Total assets...................................... $22,063,534    22,106,568
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -2-



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

                                Balance Sheets
                                  (continued)

                     March 31, 1999 and December 31, 1998
                                  (unaudited)

                       Liabilities and Partners' Capital
                       ---------------------------------
                                                       1999          1998
Current liabilities:                                   ----          ----
  Accounts payable and accrued expenses........... $    43,520        13,556
  Accrued real estate taxes.......................      78,432        62,125
  Distributions payable (Note 4)..................     192,030       192,030
  Due to Affiliates (Note 3)......................       1,531           472
  Deposits held for others........................     150,374       102,479
  Prepaid rent....................................      41,620          -
  Current portion of long-term debt...............      45,808        44,709
  Current portion of deferred gain on sale of
    investment property...........................      18,283        19,514 
                                                   ------------  ------------
Total current liabilities.........................     571,598       434,885

Deferred loan fees................................      40,404        45,123
Long-term debt, less current portion..............   1,432,626     1,444,498
Deferred gain on sale of investment property,
  less current portion............................   1,976,158     2,120,485 
                                                   ------------  ------------
Total liabilities.................................   4,020,786     4,044,991 
Partners' capital (Notes 1, 3 and 4):              ------------  ------------
  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.........................  17,155,873    16,617,196
    Cumulative distributions...................... (27,526,327)  (26,968,821)
                                                   ------------  ------------
                                                    18,078,991    18,097,820 
                                                   ------------  ------------
Total Partners' capital...........................  18,042,748    18,061,577 
                                                   ------------  ------------
Total liabilities and Partners' capital........... $22,063,534    22,106,568
                                                   ============  ============

                See accompanying notes to financial statements.


                                      -3-



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

                           Statements of Operations

              For the three months ended March 31, 1999 and 1998
                                  (unaudited)



                                                       1999          1998
Income:                                                ----          ----
  Rental income (Notes 1 and 2)................... $   511,917       524,402
  Additional rental income........................      15,310        16,157
  Interest income.................................     166,650       182,717
  Other income....................................       2,341          -    
                                                   ------------  ------------
                                                       696,218       723,276 
                                                   ------------  ------------
Expenses:
  Professional services to Affiliates.............       2,184         3,200
  Professional services to non-affiliates.........      32,941        29,350
  General and administrative expenses to
    Affiliates....................................       7,557         8,710
  General and administrative expenses to
    non-affiliates................................      15,127        15,519
  Property operating expenses to Affiliates.......       9,609         8,886
  Property operating expenses to non-affiliates...      67,216        62,160
  Interest expense to non-affiliates..............      36,125        37,130
  Depreciation....................................     125,926       125,926
  Amortization....................................       6,414         6,414 
                                                   ------------  ------------
                                                       303,099       297,295 
                                                   ------------  ------------
Operating income..................................     393,119       425,981
Gain on sale of investment property...............     145,558         5,183 
                                                   ------------  ------------
Net income........................................ $   538,677       431,164
                                                   ============  ============

Net income allocated to:
  General Partner.................................        -             -
  Limited Partners................................     538,677       431,164 
                                                   ------------  ------------
Net income........................................ $   538,677       431,164
                                                   ============  ============

Net income per Unit allocated to Limited Partners
  per weighted average Limited Partnership Units
  of 59,285.65.................................... $      9.09          7.27
                                                   ============  ============




                See accompanying notes to financial statements.


                                      -4-



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

                           Statements of Cash Flows

              For the three months ended March 31, 1999 and 1998
                                  (unaudited)


                                                       1999          1998
                                                       ----          ----
Cash flows from operating activities:
  Net income...................................... $   538,677       431,164
  Adjustments to reconcile net income to net cash
      provided by operating activities:
    Gain on sale of investment property...........    (145,558)       (5,183)
    Depreciation..................................     125,926       125,926
    Amortization..................................       6,414         6,414
    Changes in assets and liabilities:
      Accounts and rents receivable...............      (5,992)      (18,505)
      Mortgage interest receivable................       2,667           447
      Other current assets........................        (496)       (7,199)
      Deferred rent receivable....................      12,011         6,715
      Accounts payable and accrued expenses.......      29,964         9,382
      Accrued real estate taxes...................      16,307        15,804
      Due to Affiliates...........................       1,059         8,485
      Unearned income.............................      36,901        42,784 
                                                   ------------  ------------
Net cash provided by operating activities.........     617,880       616,234 
                                                   ------------  ------------
Cash flows from investing activities:
  Principal payments received on mortgage
    loans receivable..............................     483,669        18,784 
                                                   ------------  ------------
Net cash provided by investing activities.........     483,669        18,784 
                                                   ------------  ------------
Cash flows from financing activities:
  Cash distributions..............................    (557,505)     (577,232)
  Deposits held for others........................      47,894        28,781
  Principal payments of long-term debt............     (10,773)       (9,777)
                                                   ------------  ------------
Net cash used in financing activities.............    (520,384)     (558,228)
                                                   ------------  ------------
Net increase in cash and cash equivalents.........     581,165        76,790
Cash and cash equivalents at beginning of period..     681,003     1,090,891 
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $ 1,262,168     1,167,681
                                                   ============  ============


Cash paid for interest............................ $    36,212        37,209
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -5-



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

                         Notes to Financial Statements

                                March 31, 1999
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1998, which are
included  in  the  Partnership's  1998   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 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.

Statement of Financial Accounting Standards  No.  121 ("SFAS 121") requires the
Partnership to record  an  impairment  loss  on  its  property  to  be held for
investment whenever  its  carrying  value  cannot  be  fully  recovered through
estimated undiscounted future cash flows  from  their operations and sale.  The
amount of the impairment loss to  be recognized would be the difference between
the property's carrying value  and  the  property's  estimated fair value.  The
adoption of SFAS 121 did  not  have  any  effect on the Partnership's financial
position,  results  of  operations  or  liquidity.    The  Partnership  has not
recognized any such impairment. 

A presentation of information about operating segments as required in Statement
of Financial Accounting Standards  No.  131  "Disclosures  About Segments of an
Enterprise and Related Information" would  not  be material to an understanding
of the Partnership's business taken as a whole as the Partnership is engaged in
the business of  real  estate  investment  which  management  considers to be a
single operating segment.


                                      -6-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 1999
                                  (unaudited)


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

Depreciation expense is computed using  the straight-line method.  Depreciation
of buildings and improvements are based upon estimated useful lives of 30 to 40
years, while depreciation of  furniture  and  fixtures are based upon estimated
useful lives of 5 to 12  years.  Repair and maintenance expenses are charged to
operations  as  incurred.     Significant   improvements  are  capitalized  and
depreciated  over  their  estimated   useful  lives.  Tenant  improvements  are
depreciated over the related lease term.

The Partnership  considers  all  highly  liquid  investments  purchased  with a
maturity of three months or less  to  be cash equivalents. Such investments are
carried at  cost  which  approximates  market.  Cash  and  cash equivalents are
approximately $1,262,000 and $681,000 at March  31, 1999 and December 31, 1998,
respectively, of which  approximately  $140,000  and  $92,300, respectively, is
included in cash and cash equivalents for  the payment of real estate taxes for
Douglas and Hillside Living Centers.

Statement of Financial Accounting  Standards  No.  128 "Earnings per Share" was
adopted by the Partnership and has  been  applied to all prior earnings periods
presented in  the  financial  statements.    The  Partnership  has  no dilutive
securities.

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

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 on the straight-line basis
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.

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.




                                      -7-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 1999
                                  (unaudited)


(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 decreases of $12,011 and $6,715 for 1999 and 1998,
respectively, of rental income for  the  period  of occupancy for which stepped
rent increases  apply  and  $389,194  and  $401,205  in  related  deferred rent
receivable as of March 31,  1999  and  December  31, 1998, respectively.  These
amounts will be collected over  the  terms  of  the related leases as scheduled
rent payments are made.

(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 $1,531 and $472  was  unpaid  at  March  31,  1999 and December 31, 1998,
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 $9,609 and  $8,886 for the three months ended March
31, 1999 and 1998.

(4) Subsequent Events

During April 1999,  the  Partnership  paid  a  distribution  of $192,030 to the
Limited Partners.

On April 13, 1999, the Partnership  received prepayment on one of the remaining
thirty  mortgage  loans  receivable   in  the  six-unit  condominium  buildings
comprising the Schaumburg Terrace condominium complex.  The Partnership intends
to use  the  repayment  proceeds  from  this  prepayment  totaling $227,009 for
distributions and working capital requirements.

On April 30,  1999,  the  Partnership  refinanced  the existing $1,700,000 loan
collateralized by the Rantoul Wal-Mart.  The replacement loan is for $2,500,000
and is collateralized by the  Rantoul  Wal-Mart  and  the Duncan Wal-Mart.  The
replacement loan bears an interest  rate  of  6.97% as compared to the existing
9.75% interest rate  on  the  original  loan.    The  replacement loan requires
monthly interest only payments of $15,489 and will mature on April 30, 2004.




                                      -8-



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,  1999,   cumulative   distributions   to  Limited  Partners  totaled
$27,526,327, 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,  1999,  the  Partnership  had  cash  and  cash equivalents of
$1,262,168, which  includes  approximately  $140,000  for  the  payment of real
estate taxes for Douglas  and  Hillside  Living  Centers. For the quarter ended
March 31, 1999, the Partnership  received  prepayments on two of the thirty-two
mortgage loans receivable on the  six-unit condominium buildings comprising the
Schaumburg  Terrace  condominium   complex.   Repayment   proceeds  from  these
prepayments totaling $471,352 is also included  in cash and cash equivalents at
March 31, 1999.  The  Partnership  intends  to use such funds for 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.


                                      -9-



On April 30,  1999,  the  Partnership  refinanced  the existing $1,700,000 loan
collateralized by the Rantoul Wal-Mart.  The replacement loan is for $2,500,000
and is collateralized by the  Rantoul  Wal-Mart  and  the Duncan Wal-Mart.  The
replacement loan bears an interest  rate  of  6.97% as compared to the existing
9.75% interest rate on the  original  loan.   The replacement loan will require
monthly interest  only  payments  and  will  mature  on  April  30,  2004.  The
Partnership intends to  use  such  funds  for  distributins and working capital
requirements.

Results of Operations

As of March 31, 1999, 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.

For the quarter ended March  31,  1999, the Partnership received prepayments on
two of the  thirty-two  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.

Rental and additional income  decreased  for  the  three months ended March 31,
1999, as compared to the three months  ended  March 31, 1998, due to a decrease
in occupancy at McHenry  Plaza.    As  of  March 31, 1999, approximately 11,949
square feet, representing 21% of the  total  space at the center, remains to be
leased.  The General  Partner  continues  to  pursue additional leases for this
remaining space.

Interest income  decreased  for  the  three  months  ended  March  31, 1999, as
compared to the three months ended March 31, 1998, due to decreases in interest
income on the mortgage loans receivable as a result of prepayments and due to a
decrease in interest rates on investments.

Professional services to non-affiliates  increased  for  the three months ended
March 31, 1999, as compared to the three months ended March 31, 1998, due to an
increase in legal services.  This  increase  was partially offset by a decrease
in accounting services.

Property operating expenses to  non-affiliates  increased  for the three months
ended March 31, 1999, as compared to the three months ended March 31, 1998, due
to an increase in  repair  and  maintenance  expenses at McHenry Plaza Shopping
Center.

The gain on the sale of investment property recorded for the three months ended
March 31, 1999 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 increase in the
gain on the sale of investment  property  for  the three months ended March 31,
1999, as compared to the  three  months  ended  March  31,  1998, is due to the
recognition of $140,987 of  deferred  gain  from  the  prepayment of two of the
thirty-two mortgage loans receivable.



                                     -10-



The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1998 and 1999:

                                    1998                        1999          
                          ------------------------    ------------------------
                            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               81%   81%   81%   79%       79%
McHenry, Illinois

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

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

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

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

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

Year 2000 Issues

GENERAL
-------
Many computer operating systems  and  software  applications were designed such
that the year 1999 is the  maximum  date  that can be processed accurately.  In
conducting business, the Partnership relies  on computers and operating systems
provided by equipment manufacturers, and also on application software developed
internally and,  to  a  limited  extent,  by  outside  software  vendors.   The
Partnership has assessed its  vulnerability  to the so-called "Year-2000 Issue"
with respect to its equipment and computer systems.

STATE OF READINESS
------------------
The Partnership  has  identified  the  following  three  areas  for "Year-2000"
compliance efforts:

Business  Computer  Systems:  The  majority  of  the  Partnership's information
technology systems  were  developed  internally  and  include accounting, lease
management, investment portfolio  tracking,  and  tax  return preparation.  The
Partnership has rights to the  source  code  for these applications and employs
programmers who are  knowledgeable  regarding  these  systems.   The process of
testing these internal  systems  to  determine  year  2000 compliance is nearly
complete.  The Partnership does  not  anticipate any material costs relating to
its  business  computer  systems  regarding  year  2000  compliance  since  the
Partnership's  critical  hardware  and  software  systems  use  four  digits to
represent the applicable year.  The Partnership does use various computers, so-
called "PC's", that may run software that  may not use four digits to represent
the applicable year.  The  Partnership  is  in  the  process  of testing the PC
hardware and software to determine year  2000  compliance, but it must be noted
that such PC's  are  incidental  to  the  Partnership's  critical systems.  The
Partnership is considering independent testing of its critical systems.


                                     -11-



Tenants and Suppliers: The Partnership is  in the process of surveying tenants,
suppliers and other parties with whom the Partnership does a significant amount
of business to identify the Partnership's  potential exposure in the event such
parties are not year 2000  compliant  in  a  timely  manner.  At this time, the
Partnership is not aware of any party that is anticipating a material Year 2000
compliance issue.  However, since  this  area  involves some parties over which
the Partnership  has  no  control,  such  as  public  utility  companies, it is
difficult, at best, to judge  the  status  of  the outside companies' year 2000
compliance. The Partnership is working closely  with all suppliers of goods and
services in an effort to minimize the  impact of the failure of any supplier to
become  year  2000   compliant   by   December   31,  1999.  The  Partnership's
investigations  and  assessments  of  possible   year  2000  issues  are  in  a
preliminary stage, and currently the  Partnership  is not aware of any material
impact on its business, operations or  financial  condition even if one or more
parties is not Year 2000 compliant  in  a  timely manner, due to the number and
nature of the Partnership's diverse tenant base.

Non-Information Technology Systems:  In  the  operation  of its properties, the
Partnership  has  acquired   equipment   with   embedded   technology  such  as
microcontrollers, which  operate  heating,  ventilation,  and  air conditioning
systems,  fire  alarms,  security   systems,  telephones  and  other  equipment
utilizing time-sensitive technology.    The  Partnership  is  in the process of
evaluating its potential exposure and  costs if such non-information technology
systems are not year 2000  compliant  and  expects  to  be able to complete its
assessment during the second quarter of 1999.

YEAR 2000 RISKS
---------------
The most reasonable likely worst case scenario for the Partnership with respect
to the year 2000 non-compliance of  its  business computer systems would be the
inability to access information  which  could  result  in  the failure to issue
financial reports.  The  most  reasonable  likely  worst  case scenario for the
Partnership with respect to  the  year  2000  non-compliance  of its tenants is
failure to receive rental income  which  could  result in the Partnership being
unable to meet  cash  requirements  for  monthly  expenses. The most reasonable
likely worst case scenario for  the  Partnership  with respect to the year 2000
non-compliance of its suppliers is  the  failure to supply necessary utilities;
including, but not limited to heating, as  a result of a malfunctioning of non-
information technology systems in some of the Partnership's properties.

YEAR 2000 COSTS
---------------
The Partnership's General Partner  and  its  Affiliates  estimate that costs to
achieve  year  2000  compliance   will   not  exceed  $100,000.  However,  only
approximately 1% of these costs will  be  directly allocated to and paid by the
Partnership. The balance of the  year 2000 compliance costs, approximately 99%,
will be paid by  the  General  Partner  and  its  Affiliates.   Total year 2000
compliance costs incurred through December 31, 1998 were approximately $5,000.









                                     -12-



CONTINGENCY PLAN
----------------
The Partnership expects to be Year 2000  compliant in advance of the year 2000.
The Partnership will continue to  monitor  its progress and state of readiness,
and is in the process of  formulating  a contingency plan which the Partnership
will be prepared to adopt with  respect  to areas in which evidence arises that
it may not become Year 2000 compliant  in sufficient time.  With respect to its
tenants,  suppliers  and  other  parties  with  whom  the  Partnership conducts
business, the Partnership does not  yet have sufficient information to identify
the types of problems it may encounter in the event these third parties are not
Year 2000 compliant.  As information is obtained that may indicate such parties
may not become  Year  2000  compliant  in  sufficient  time, the Partnership is
prepared to develop contingency plans, accordingly.



                          PART II - Other Information

Items 1 through 5(b) 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



























                                     -13-



                                  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 13, 1999


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: May 13, 1999


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: May 13, 1999





















                                     -14-