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, 2004or

[ ]  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

Indicate by a checkmark whether the registrant is an accelerated filer (as defined in Securities Exchange Act Rule 12b-2)    Yes    No X

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
March 31, 2004 and December 31, 2003
(unaudited)Assets



|                                                                                                                                                                                       |   | 2004       | 2003      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------- | ----------
|Current assets:                                                                                                                                                                        |   |            |           
|Cash and cash equivalents (Note 1)                                                                                                                                                     | $ | 1,234,414  | 1,229,895 
|Mortgage and other interest receivable                                                                                                                                                 |   | 2,067      | 2,100     
|Current portion of mortgage loans receivable                                                                                                                                           |   | 208,911    | 209,824   
|                                                                                                                                                                                       |   |            |           
|Total current assets                                                                                                                                                                   |   | 1,445,392  | 1,441,819 
|                                                                                                                                                                                       |   |            |           
|Investment properties (including acquisition fees paid to Affiliates of   $1,186,224, as of March 31, 2004 and December 31, 2003):                                                     |   |            |           
|Land                                                                                                                                                                                   |   | 1,982,878  | 1,982,878 
|Buildings and improvements                                                                                                                                                             |   | 10,550,722 | 10,550,722
|                                                                                                                                                                                       |   |            |           
|                                                                                                                                                                                       |   | 12,533,600 | 12,533,600
|Less accumulated depreciation                                                                                                                                                          |   | 4,783,123  | 4,705,305 
|                                                                                                                                                                                       |   |            |           
|Net investment properties                                                                                                                                                              |   | 7,750,477  | 7,828,295 
|                                                                                                                                                                                       |   |            |           
|Other assets:                                                                                                                                                                          |   |            |           
|Deferred loan fees (net of accumulated amortization of $98,400 and     $96,870 at March 31, 2004 and December 31, 2003, respectively)                                                  |   | 510        | 2,040     
|Deferred leasing fees (including $219,451 paid to Affiliates) (net of     accumulated amortization of $329,318 and $328,932 at March 31,     2004 and December 31, 2003, respectively) |   | 15,069     | 15,455    
|Deferred rent receivable (Note 2)                                                                                                                                                      |   | 218,059    | 222,230   
|                                                                                                                                                                                       |   |            |           
|Total other assets                                                                                                                                                                     |   | 233,638    | 239,725   
|                                                                                                                                                                                       |   |            |           
|Total assets                                                                                                                                                                           | $ | 9,429,507  | 9,509,839 



See accompanying notes to financial statements.

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Balance Sheets
(continued)
March 31, 2004 and December 31, 2003
(unaudited)

Liabilities and Partners' Capital

|                                                                                                                                                                |   | 2004         | 2003        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------ | ------------
|Current liabilities:                                                                                                                                            |   |              |             
|Accounts payable and accrued expenses                                                                                                                           | $ | 68,821       | 57,945      
|Accrued real estate taxes                                                                                                                                       |   | 3,125        | 2,500       
|Distributions payable (Note 4)                                                                                                                                  |   | 110,472      | 110,778     
|Due to Affiliates (Note 3)                                                                                                                                      |   | 10,627       | 11,702      
|Deposits held for others                                                                                                                                        |   | 128,365      | 108,607     
|Current portion of long-term debt                                                                                                                               |   | 1,515,000    | 1,515,000   
|Current portion of deferred gain on sale of investment property                                                                                                 |   | 57,835       | 58,121      
|                                                                                                                                                                |   |              |             
|Total current liabilities                                                                                                                                       |   | 1,894,245    | 1,864,653   
|                                                                                                                                                                |   |              |             
|Deferred loan fees                                                                                                                                              |   | 117          | 176         
|Commission payable to Affiliates                                                                                                                                |   | 151,200      | 151,200     
|                                                                                                                                                                |   |              |             
|Total liabilities                                                                                                                                               |   | 2,045,562    | 2,016,029   
|                                                                                                                                                                |   |              |             
|Partners' capital (deficit):                                                                                                                                    |   |              |             
|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                                                                                                                                           |   | 26,427,505   | 26,213,080  
|Cumulative distributions                                                                                                                                        |   | (47,456,762) | (47,132,472)
|                                                                                                                                                                |   |              |             
|                                                                                                                                                                |   | 7,420,188    | 7,530,053   
|                                                                                                                                                                |   |              |             
|Total Partners' capital                                                                                                                                         |   | 7,383,945    | 7,493,810   
|                                                                                                                                                                |   |              |             
|Total liabilities and Partners' capital                                                                                                                         | $ | 9,429,507    | 9,509,839   



See accompanying notes to financial statements.

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Operations
For the three months ended March 31, 2004 and 2003
(unaudited)

|                                                                                                              |   | 2004    | 2003   
|------------------------------------------------------------------------------------------------------------- | - | ------- | -------
|                                                                                                              |   |         |        
|Income:                                                                                                       |   |         |        
|Rental income (Note 2)                                                                                        | $ | 367,991 | 361,958
|Interest income                                                                                               |   | 6,825   | 13,192 
|                                                                                                              |   |         |        
|                                                                                                              |   | 374,816 | 375,150
|Expenses:                                                                                                     |   |         |        
|Professional services to Affiliates                                                                           |   | 4,144   | 7,618  
|Professional services to non-affiliates                                                                       |   | 31,585  | 29,980 
|General and administrative expenses to Affiliates                                                             |   | 7,748   | 10,209 
|General and administrative expenses to non-affiliates                                                         |   | 6,080   | 30,092 
|Property operating expenses to Affiliates                                                                     |   | 3,919   | 3,869  
|Property operating expenses to non-affiliates                                                                 |   | 775     | 7,594  
|Interest expense to non-affiliates                                                                            |   | 26,692  | 26,399 
|Depreciation                                                                                                  |   | 77,818  | 68,295 
|Amortization                                                                                                  |   | 1,916   | 2,675  
|                                                                                                              |   |         |        
|                                                                                                              |   | 160,677 | 186,731
|                                                                                                              |   |         |        
|Operating income                                                                                              |   | 214,139 | 188,419
|Gain on sale of investment property                                                                           |   | 286     | 475    
|                                                                                                              |   |         |        
|Net income                                                                                                    | $ | 214,425 | 188,894
|                                                                                                              |   |         |        
|Net income allocated to:                                                                                      |   |         |        
|General Partner                                                                                               | $ | -       | -      
|Limited Partners                                                                                              |   | 214,425 | 188,894
|                                                                                                              |   |         |        
|Net income                                                                                                    | $ | 214,425 | 188,894
|                                                                                                              |   |         |        
|Net income per Unit allocated to Limited Partners per weighted average Limited Partnership Units of 59,285.65 | $ | 3.62    | 3.19   



See accompanying notes to financial statements

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Statements of Cash Flows
For the three months ended March 31, 2004 and 2003
(unaudited)

|                                                                                      |   | 2004      | 2003     
|------------------------------------------------------------------------------------- | - | --------- | ---------
|Cash flows from operating activities:                                                 |   |           |          
|Net income                                                                            | $ | 214,425   | 188,894  
|Adjustments to reconcile net income to net cash provided by operating     activities: |   |           |          
|Gain on sale of investment property                                                   |   | (286)     | (475)    
|Depreciation                                                                          |   | 77,818    | 68,295   
|Amortization                                                                          |   | 1,916     | 2,675    
|Changes in assets and liabilities:                                                    |   |           |          
|Interest receivable                                                                   |   | 33        | 45       
|Deferred rent receivable                                                              |   | 4,171     | 4,171    
|Accounts payable and accrued expenses                                                 |   | 10,876    | 32,806   
|Accrued real estate taxes                                                             |   | 625       | 626      
|Due to Affiliates                                                                     |   | (1,075)   | 1,811    
|Deferred loan fees                                                                    |   | (59)      | (117)    
|Net cash provided by operating activities                                             |   | 308,444   | 298,731  
|Cash flows from investing activities:                                                 |   |           |          
|Additions to investment property                                                      |   | -         | (400,000)
|Principal payments received on mortgage loans receivable                              |   | 913       | 1,682    
|                                                                                      |   |           |          
|Net cash provided by (used in) investing activities                                   |   | 913       | (398,318)
|Cash flows from financing activities:                                                 |   |           |          
|Cash distributions                                                                    |   | (324,596) | (831,474)
|Deposits held for others                                                              |   | 19,758    | 20,742   
|Net cash used in financing activities                                                 |   | (304,838) | (810,732)
|Net increase (decrease) in cash and cash equivalents                                  |   | 4,519     | (910,319)
|Cash and cash equivalents at beginning of period                                      |   | 1,229,895 | 1,904,517
|                                                                                      |   |           |          
|Cash and cash equivalents at end of period                                            | $ | 1,234,414 | 994,198  
|                                                                                      |   |           |          
|Supplemental disclosure of non-cash investing activities:                             |   |           |          
|Cash paid for interest                                                                | $ | 26,692    | 26,399   
|                                                                                      |   |           |          



See accompanying notes to financial statements.

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
March 31, 2004
(unaudited)

Readers of this Quarterly Report should refer to the Partnership's audited financial statements for the fiscal year ended December 31, 2003, which are included in the Partnership's 2003 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  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 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 preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") 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 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.

In January 2003, FASB issued Interpretation No. 46 ("FIN 46") "Consolidation of Variable Interest Entities and Interpretation of Accounting Research Bulletin (ARB) No. 51", which was revised in December 2003.  The primary objectives of FIN No. 46 are to provide guidance on the identification of entities for which control is achieved through means other than through voting rights (Variable Interest Entities) and how to determine when and which business enterprise should consolidate the Variable Interest Entity (the Primary Beneficiary).  The effective date for the Partnership is March 31, 2004. FIN 46 does not have a material impact on the Partnership's financial condition and results of operations.

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INLAND'S MONTHLY INCOME FUND, L.P.
(a limited partnership)
Notes to Financial Statements
(continued)
March 31, 2004
(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 a decrease of $4,171 in 2004 and 2003 of rental income for the period of occupancy for which stepped rent increases apply and $218,059 and $222,230 in related deferred rent receivable as of March 31, 2004 and December 31, 2003, respectively. These amounts are expected to 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, of which $10,627 and $11,702 remained unpaid at March 31, 2004 and December 31, 2003, 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 $3,919 and $3,869 for the three months ended March 31, 2004 and 2003, respectively. Such fees are included in property operating expenses to Affiliates, all of which have been paid as of March 31, 2004 and December 31, 2003.

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 Wal-Mart 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.

In connection with the sale of Douglas Towers on August 24, 2001, the Partnership recorded $5,635 of sales commission payable to an affiliate of the general partner. This commission was written off against the bad debt expense in 2003.

(4)  Subsequent Events

The Partnership paid distributions of $110,472 on April 10, 2004.

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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 our 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; uninsured losses; and potential conflicts of interest between us and our affiliates, including the general partner.

We electronically file our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports with the Securities and Exchange Commission (SEC).  The public may read and copy any of the reports that are filed with the SEC at the SEC's Public Reference Room at 405 Fifth Street, NW, Washington, DC 20549.  The public may obtain information on the operation of the Public Reference room by calling the SEC at (800)-SEC-0330.  The SEC maintains an Internet site at (www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically.

Critical Accounting Policies

On December 12, 2001, the Securities and Exchange Commission issued Financial Reporting Release or FRR No. 60 "Cautionary Advice Regarding Disclosure About Critical Accounting Policies."  A critical accounting policy is one that would materially effect our operations or financial condition, and requires management to make estimates or judgements in certain circumstances. We believe that our most critical accounting policies relate to how we value our investment properties and mortgage loans receivable, recognize revenue, and our cost capitalization and depreciation policies. These judgements often result from the need to make estimates about the effect of matters that are inherently uncertain.  The purpose of the FRR is to provide investors with an understanding of how management forms these policies.  Critical accounting policies discussed in this section are not to be confused with accounting principles and methods disclosed in accordance with accounting principles generally accepted in the United States of America or GAAP.  GAAP requires information in financial statements about accounting principles, methods used and disclosures pertaining to significant estimates.  The following disclosure discusses judgements known to management pertaining to trends, events or uncertainties known which were taken into consideration upon the application of those policies and the likelihood that materially different amounts would be reported upon taking into consideration different conditions and assumptions.

Valuation of Investment Properties -On a quarterly basis, in accordance with Statement of Financial Accounting Standards No. 144, we conduct an impairment analysis to ensure that the carrying value of each property does not exceed its estimated fair value.  If this were to occur, we would be required to record an impairment loss equal to the excess of carrying value over fair value.

In determining the value of an investment property and whether the property is impaired, management considers several factors such as projected rental and vacancy rates, property operating expenses, capital expenditures and interest rates.  The capitalization and discount rates used to determine property valuation are based on the market in which the property is located, length of leases, tenant financial strength, the economy in general, demographics, environment, property location, visibility, age, physical condition and investor return requirements among others. All of the aforementioned factors are considered by management in determining the value of any particular property.  The value of any particular property is sensitive to the actual results of any of these uncertain factors, either individually or taken as a whole.  Should the actual results differ from management's judgement, the valuation could be negatively or positively affected.

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The valuation and possible subsequent impairment of investment properties is a significant estimate that can and does change based on management's continuous process of analyzing each property.

Valuation of Mortgage Loans Receivable-On a quarterly basis, we conduct an analysis to ensure that the carrying value of each mortgage loan receivable is recoverable from the borrower.  If we determine that all or a portion of the receivable is not collectible, we would be required to record an allowance for doubtful accounts equal to the amount estimated to be uncollectible.

In determining the value of mortgage loans receivable, management considers several factors such as projected sales proceeds and expenses related to the property associated with the mortgage. Should the actual results differ from management's judgement, the valuation could be negatively or positively affected.

The valuation and possible subsequent allowance for doubtful accounts is a significant estimate that can and does change based on management's continuous process of analyzing each mortgage loan receivable.

Revenue Recognition - Under GAAP, we are required to recognize rental income based on the effective monthly rent for each lease.  The effective monthly rent is equal to the average monthly rent during the term of the lease, not the stated rent for any particular month.  The process, known as "straight-lining" rent, generally has the effect of increasing rental revenues during the early phases of a lease and decreasing rental revenues in the latter phases of a lease. If rental income calculated on a straight-line basis exceeds the cash rent due under the lease, the difference is recorded as an increase in deferred rent receivable and included as a component of rental income in the accompanying Statements of Operations.  If the cash rent due under the lease exceeds rental income calculated on a straight-line basis, the difference is recorded as a decrease in deferred rent receivable and is also included as a component of rental income in the accompanying Statements of Operations.

Cost Capitalization and Depreciation Policies -We review all expenditures and capitalize any item exceeding $5,000 deemed to be an upgrade or a tenant improvement.  If we capitalize more expenditures, current depreciation expense would be higher, however, total current expenses would be lower.  Depreciation expense is computed using the straight-line method.  Buildings and improvements are depreciated based upon estimated useful lives of 30 to 40 years for buildings and improvements and the remaining life of the related lease for tenant improvements.



On August 3, 1987, we commenced an offering of 50,000 (increased to 60,000) limited partnership units or units pursuant to a Registration Statement on Form S-11 under the Securities Act of 1933. The offering terminated on August 3, 1988, after we had sold 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 our units have been admitted to our partnership. We acquired seven properties utilizing $25,831,542 of capital proceeds collected. During 1994 and 1995, we sold the thirty-eight six-unit condominium buildings comprising the Schaumburg Terrace condominium complex. Also, we sold one of the three lots adjacent to the Hillside Living Center during September 1997. In 2000, we sold McHenry Plaza and the Rantoul Wal-Mart. In 2001, we sold the 35-unit retirement apartment center which was part of the Douglas Living and Retirement Center.  As of March 31, 2004, cumulative distributions to limited partners totaled $47,456,762, including $2,095,863 of supplemental capital contributions from the general partner, which represents distributable cash flow from the properties. We 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.

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As of March 31, 2004, we had cash and cash equivalents of $1,234,414, which includes approximately $128,365 expected to be used for the payment of real estate taxes for Douglas and Hillside Living Centers. As of March 31, 2004, we have received prepayments on 36 of the original 37 mortgage loans receivable relating to the sale of Schaumburg Terrace. A portion of these repayment proceeds were included in the distributions to the limited partners during prior years. We intend to use the remaining funds for future distributions and for working capital requirements.

Our $1,515,000 debt, collateralized by the Duncan Wal-Mart, matured on April 30, 2004. Our lender has approved a six month extension of this loan to October 31, 2004. The extension will require interest only payments at an annual rate of LIBOR plus 200 basis points.  We continue to market the Scandinavian Health Club for sale, and as of March 22, 2004, we have entered into an agreement to sell this asset. The buyer is currently in the due diligence process. Provided contingencies are met, the buyer performs and the sale closes, a portion of the sales proceeds will be used to payoff the Duncan Wal-Mart debt and make a distribution to investors. Although there can be no assurance, we anticipate the sale will occur in the second quarter of 2004.

Due to the payoff of the mortgage receivables relating to the sale of Schaumburg Terrace and additional property expenses incurred relating to Douglas Towers, the properties we own, along with the interest received on the Schaumburg Terrace mortgage receivables, did not generate sufficient cash flow to meet the 8% annualized distributions to the limited partners (paid monthly), in addition to covering all our operating expenses for the three months ended March 31, 2004.  As a result, we have relied on working capital retained from the principal payoffs of the Schaumburg Terrace receivable to meet our cash requirements. To the extent that future cash flow is insufficient to meet our requirements, we may rely on working capital reserve, supplemental capital contributions from our general partner, advances from affiliates of our general partner, other short-term financing, or may sell one or more of the properties.

Transactions with Related Parties

Our general partner and its affiliates are entitled to reimbursement for salaries and expenses of employees of the general partner and its affiliates relating to our administration. Such costs of $11,892 and $17,827 are included in professional services to affiliates and general and administrative expenses to affiliates for the three months ended March 31, 2004 and 2003, respectively, of which $10,627 and $11,702 remained unpaid at March 31, 2004 and December 31, 2003, respectively.

An affiliate of our general partner is entitled to receive property management fees for management and leasing services. We have incurred property management fees of $3,919 and $3,869 for the three months ended March 31, 2004 and 2003, respectively. Such fees are included in property operating expenses to affiliates, all of which have been paid as of March 31, 2004 and December 31, 2003.

In connection with the sale of McHenry Plaza Shopping Center on July 19, 2000, we recorded $68,700 of sales commission payable to an affiliate of our 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 Wal-Mart on August 5, 2000, we recorded $82,500 of sales commission payable to an affiliate of our 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 Douglas Towers on August 24, 2001, we recorded $5,635 of sales commission payable to an affiliate of our general partner.  This commission was written off against the bad debt expense in 2003.

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Results of Operations

As of March 31, 2004, we own four operating properties. All 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 gain on the sale of investment property recorded for the three months ended March 31, 2004 and 2003 is the result of deferred gain of $286 and $475, respectively, 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 was $367,991 and $361,958 for the three months ended March 31, 2004 and 2003, respectively.  The increase in 2004 is the result of the increase in the Scandinavian Health Club lease as a result of the April 2003 amendment.

Interest income was $6,825 and $13,192 for the three months ended March 31, 2004 and 2003, respectively.  The decrease is due to a decrease in interest income on third party mortgages, as a result of prepayments of mortgage loans receivable and due to a decrease in investment income due to lower interest rates.

Professional services to affiliates were $4,144 and $7,618 for the three months ended March 31, 2004 and 2003, respectively.  The decrease in 2004 was due to a decrease in accounting and legal fees paid to affiliates.

General and administrative expenses to affiliates were $7,748 and $10,209 for the three months ended March 31, 2004 and 2003, respectively. The decrease in 2004 is due to a decrease in mortgage servicing fees paid. General and administrative expenses to non-affiliates were $6,080 and $30,092 for the three months ended March 31, 2004 and 2003, respectively.  The decrease in general and administrative expenses to non-affiliates for the three months ended March 31, 2004 , is due primarily to a decrease in state taxes paid.

Property operating expenses to non-affiliates were $775 and $7,594 for the three months ended March 31, 2004 and 2003, respectively. Property operating expenses to non-affiliates decreased for the three months ended March 31, 2004, as compared to the three months ended March 31, 2003, due to property level expenses relating to Douglas Towers that we paid in 2003 while in the process of obtaining title to the property.

The following is a list of approximate occupancy levels for the partnership's investment properties as of the end of each quarter during 2003 and 2004:

|                                     | 2003  |       | 2004 
|------------------------------------ | ----- | ----- | -----
|Properties                           | 03/31 | 06/30 | 09/30
|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                       |       |       |      
|                                     |       |       |      
|Duncan Wal-Mart *                    | --    | --    | --   
|Duncan, Oklahoma                     |       |       |      



* This store has been vacated by the lessee, however the lessee continues to pay rent.

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Off-Balance Sheet Arrangements, Contractual Obligations, Liabilities and Contracts and Commitments

The table below presents our obligations and commitments to make future payments under debt obligations, maintenance contracts and lease agreements as of March 31, 2004.

|Contractual Obligations | Payments due by period
|----------------------- | ----------------------

|               |   |           | Less than |          
|-------------- | - | --------- | --------- | ---------
|               |   | Total     | 1 year    | 1-3 years
|               |   |           |           |          
|Long-Term Debt | $ | 1,515,000 | 1,515,000 | -        

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.



Our general partner conducted, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report.  Based upon that evaluation, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information that is required to be disclosed in the periodic reports that we must file with the Securities and Exchange Commission.

There were no changes in our internal controls over financial reporting that occurred during the three months ended March 31, 2004 that materially affected, or are reasonably likely to materially affect, our internal control of financial reporting.

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:

31.1 Rule 13a-14(a)/15d-14(a) Certification by principal executive officer

31.2 Rule 13a-14(a)/15d-14(a) Certification by principal financial officer

32.1 Section 1350 Certification by principal executive officer

32.2 Section 1350 Certification by principal financial officer

(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/ BRENDA G. GUJRAL                     
|      |                                          
|By:   | Brenda G. Gujral                         
|      | President                                
|Date: | May 14, 2004                             
|      |                                          
|      |                                          
|      | /S/ PATRICIA A. DELROSSO                 
|      |                                          
|By:   | Patricia A. DelRosso                     
|      | Senior Vice President                    
|Date: | May 14, 2004                             
|      |                                          
|      |                                          
|      | /S/ KELLY TUCEK                          
|      |                                          
|By:   | Kelly Tucek                              
|      | Vice President and                       
|      | Principal Financial Officer              
|Date: | May 14, 2004                             

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