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, 1998

                                      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, 1998 and December 31, 1997
                                  (unaudited)

                                    Assets
                                    ------

                                                       1998          1997
Current assets:                                        ----          ----
  Cash and cash equivalents (Note 1).............. $ 1,167,681     1,090,891
  Accounts and rents receivable...................      55,891        37,386
  Mortgage interest receivable....................      60,287        60,734
  Current portion of mortgage loans receivable....      78,796        77,301
  Current portion of deferred rent receivable.....       7,380         9,301
  Other assets....................................      10,291         3,092
                                                   ------------  ------------
Total current assets..............................   1,380,326     1,278,705
                                                   ------------  ------------
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...................   5,145,131     5,019,205
                                                   ------------  ------------
Net investment properties.........................  13,896,116    14,022,042
                                                   ------------  ------------
Other assets:
  Mortgage loans receivable, less current portion.   7,689,710     7,709,989
  Deferred loan fees (net of accumulated
    amortization of $28,547 and $27,390 at
    March 31, 1998 and December 31, 1997,
    respectively) (Note 1)........................      17,741        18,898
  Deferred leasing fees (including $219,451
    paid to Affiliates) (net of accumulated
    amortization of $195,514 and $190,257 at
    March 31, 1998 and December 31, 1997,
    respectively) (Note 1)........................     148,873       154,130
  Deferred rent receivable, less current portion
    (Notes 1 and 2)...............................     421,732       426,526
                                                   ------------  ------------
Total other assets................................   8,278,056     8,309,543
                                                   ------------  ------------
Total assets...................................... $23,554,498    23,610,290
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -2-



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

                                Balance Sheets
                                  (continued)

                     March 31, 1998 and December 31, 1997
                                  (unaudited)

                       Liabilities and Partners' Capital
                       ---------------------------------
                                                       1998          1997
Current liabilities:                                   ----          ----
  Accounts payable and accrued expenses........... $    26,353        16,971
  Accrued real estate taxes.......................      76,162        60,358
  Distributions payable (Note 4)..................     198,824       198,824
  Due to Affiliates (Note 3)......................      10,496         2,011
  Deposits held for others........................     131,666       102,885
  Current portion of long-term debt...............      41,569        40,572
  Current portion of deferred gain on sale of
    investment property...........................      20,732        20,732
                                                   ------------  ------------
Total current liabilities.........................     505,802       442,353

Unearned income (Note 1)..........................      98,437        55,653
Long-term debt, less current portion..............   1,478,433     1,489,207
Deferred gain on sale of investment property,
  less current portion............................   2,264,225     2,269,408
                                                   ------------  ------------
Total liabilities.................................   4,346,897     4,256,621
                                                   ------------  ------------
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.........................  15,012,826    14,581,662
    Cumulative distributions...................... (24,218,427)  (23,641,195)
                                                   ------------  ------------
                                                    19,243,844    19,389,912
                                                   ------------  ------------
Total Partners' capital...........................  19,207,601    19,353,669
                                                   ------------  ------------
Total liabilities and Partners' capital........... $23,554,498    23,610,290
                                                   ============  ============

                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, 1998 and 1997
                                  (unaudited)



                                                       1998          1997
Income:                                                ----          ----
  Rental income (Notes 1 and 2)................... $   524,402       475,176
  Additional rental income........................      16,157        10,897
  Interest income.................................     182,717       189,212
  Other income....................................        -            1,325
                                                   ------------  ------------
                                                       723,276       676,610
                                                   ------------  ------------
Expenses:
  Professional services to Affiliates.............       3,200         3,736
  Professional services to non-affiliates.........      29,350        25,615
  General and administrative expenses to
    Affiliates....................................       8,710        11,572
  General and administrative expenses to
    non-affiliates................................      15,519        16,659
  Property operating expenses to Affiliates.......       8,886         8,104
  Property operating expenses to non-affiliates...      62,160        81,733
  Interest expense to non-affiliates..............      37,130        38,042
  Depreciation....................................     125,926       130,048
  Amortization....................................       6,414         6,414
                                                   ------------  ------------
                                                       297,295       321,923
                                                   ------------  ------------
Operating income..................................     425,981       354,687
Gain on sale of investment property...............       5,183         5,666
                                                   ------------  ------------
Net income........................................ $   431,164       360,353
                                                   ============  ============

Net income allocated to:
  General Partner.................................        -             -
  Limited Partners................................     431,164       360,353
                                                   ------------  ------------
Net income........................................ $   431,164       360,353
                                                   ============  ============

Net income per Unit, basic and diluted, allocated
  to Limited Partners per weighted average Limited
  Partnership Units of 59,285.65.................. $      7.27          6.08
                                                   ============  ============




                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, 1998 and 1997
                                  (unaudited)


                                                       1998          1997
                                                       ----          ----
Cash flows from operating activities:
  Net income...................................... $   431,164       360,353
  Adjustments to reconcile net income to net cash
      provided by operating activities:
    Gain on sale of investment property...........      (5,183)       (5,666)
    Depreciation..................................     125,926       130,048
    Amortization..................................       6,414         6,414
    Changes in assets and liabilities:
      Accounts and rents receivable...............     (18,505)        7,178
      Mortgage interest receivable................         447         6,968
      Other current assets........................      (7,199)        2,286
      Deferred rent receivable....................       6,715        18,201
      Accounts payable and accrued expenses.......       9,382        21,456
      Accrued real estate taxes...................      15,804        15,439
      Due to Affiliates...........................       8,485        17,405
      Unearned income.............................      42,784        66,870
                                                   ------------  ------------
Net cash provided by operating activities.........     616,234       646,952
                                                   ------------  ------------
Cash flows from investing activities:
  Principal payments received on mortgage
    loans receivable..............................      18,784        19,268
                                                   ------------  ------------
Net cash provided by investing activities.........      18,784        19,268
                                                   ------------  ------------
Cash flows from financing activities:
  Cash distributions..............................    (577,232)     (652,916)
  Deposits held for others........................      28,781        27,906
  Principal payments of long-term debt............      (9,777)       (8,872)
                                                   ------------  ------------
Net cash used in financing activities.............    (558,228)     (633,882)
                                                   ------------  ------------
Net increase in cash and cash equivalents.........      76,790        32,338
Cash and cash equivalents at beginning of period..   1,090,891       357,749
                                                   ------------  ------------
Cash and cash equivalents at end of period........ $ 1,167,681       390,087
                                                   ============  ============


Cash paid for interest............................ $    37,209        38,114
                                                   ============  ============



                See accompanying notes to financial statements.


                                      -5-



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

                         Notes to Financial Statements

                                March 31, 1998
                                  (unaudited)


Readers of this  Quarterly  Report  should  refer  to the Partnership's audited
financial statements for the  fiscal  year  ended  December 31, 1997, which are
included  in  the  Partnership's  1997   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.    As  of  March 31, 1998, the
Partnership has not recognized any such impairment. 

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





                                      -6-



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

                         Notes to Financial Statements
                                  (continued)

                                March 31, 1998
                                  (unaudited)


Depreciation expense is computed using the straight-line method.  Buildings and
improvements are based upon estimated  useful  lives  of  30 to 40 years, while
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 and are carried at cost
which approximates market.  For the  periods  ended March 31, 1998 and December
31, 1997, included in cash  and  cash equivalents is approximately $122,700 and
$94,000, respectively, 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 for the  year  ended  December 31, 1997 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.  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 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, 1998
                                  (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 $6,715 and $18,201 for 1998 and 1997,
respectively, of rental income for  the  period  of occupancy for which stepped
rent increases  apply  and  $429,112  and  $435,827  in  related  deferred rent
receivable as of March 31,  1998  and  December  31, 1997, respectively.  These
amounts will be collected over  the  terms  of  the related leases as scheduled
rent payments are made.   Deferred  rent  receivable of $16,341 was written off
against rental  income  for  the  year  ended  December  31,  1997,  due to the
restructuring of a lease at McHenry Plaza Shopping Center.


(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 $10,496 and $2,011 was unpaid  at  March  31, 1998 and December 31, 1997,
respectively.

An Affiliate of the General Partner  is entitled to receive Property Management
Fees for management and  leasing  services.    The Partnership has incurred and
paid property management fees of $8,886  and  $8,104 for the three months ended
March 31, 1998 and 1997, respectively.


(4) Subsequent Events

During April 1998,  the  Partnership  paid  a  distribution  of $198,824 to the
Limited Partners.

During May 1998, the Partnership  received  prepayment  on one of the remaining
thirty-four mortgage loans  receivable  on  the  six-unit condominium buildings
comprising the Schaumburg Terrace condominium complex.  Repayment proceeds from
this prepayment  total  $225,075  and,  accordingly,  the  Partnership recorded
$65,128 of gain.  The remaining  deferred gain of $2,219,829 will be recognized
over the life of the related mortgage loans as principal payments are received.






                                      -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 of "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,  1998,   cumulative   distributions   to  Limited  Partners  totaled
$24,218,427, 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,  1998,  the  Partnership  had  cash  and  cash equivalents of
$1,167,681, which  includes  approximately  $122,700  for  the  payment of real
estate taxes for Douglas and Hillside Living Centers. During December 1997, the
Partnership received prepayments on  three  of  the thirty-seven mortgage loans
receivable on  the  six-unit  condominium  buildings  comprising the Schaumburg
Terrace condominium complex. Repayment proceeds from these prepayments totaling
$709,800 is also included in cash and  cash equivalents at March 31, 1998.  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-



Results of Operations

As of March 31, 1998, 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.
During 1997, the Partnership received  prepayments on three of the thirty-seven
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  increased  for  the  three months ended March 31,
1998, as compared to the three months  ended March 31, 1997, due to an increase
in occupancy at McHenry Plaza  and  the  write  off of deferred rent receivable
relating to lease modifications  for  the  three  months  ended March 31, 1997,
resulting in an increase in rental income  for the three months ended March 31,
1998.  As of March 31, 1998, approximately 10,749 square feet, representing 19%
of the total space at the  center,  remains  to be leased.  The General Partner
continues to pursue additional leases for this remaining space.

Professional services to non-affiliates  increased  for  the three months ended
March 31, 1998, as compared to the three months ended March 31, 1997, due to an
increase in accounting fees. This  increase  was partially offset by a decrease
in legal services.

General and  administrative  expenses  to  Affiliates  decreased  for the three
months ended March 31, 1998, as  compared  to  the three months ended March 31,
1997, due to  a  decrease  in  mortgage  servicing  fees  and postage expenses.
General and administrative expenses  to  non-affiliates decreased for the three
months ended March 31, 1998, as  compared  to  the three months ended March 31,
1997, due to a  decreases  in  printing  expenses.  This decrease was partially
offset by an increase in the Illinois Replacement Tax paid in 1998.

Property operating expenses to  non-affiliates  decreased  for the three months
ended March 31, 1998, as compared to the three months ended March 31, 1997, due
to a decrease 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, 1998 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.












                                     -10-



The following is a list  of  approximate occupancy levels for the Partnership's
investment properties as of the end of each quarter during 1997 and 1998:

                                    1997                        1998
                          ------------------------    ------------------------
                            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               72%   68%   89%   68%      81%
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 Compliance

The  Partnership  has  reviewed  its  current  computer  systems  and  does not
anticipate any future problems relating to the year 2000.










                          PART II - Other Information

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











                                     -11-



                                  SIGNATURES



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



                            INLAND'S MONTHLY INCOME FUND, L.P.

                            By:   Inland Real Estate Investment Corporation
                                  General Partner


                                  /S/ ROBERT D. PARKS

                            By:   Robert D. Parks
                                  Chairman
                            Date: May 15, 1998


                                  /S/ PATRICIA A. CHALLENGER

                            By:   Patricia A. Challenger
                                  Senior Vice President
                            Date: May 15, 1998


                                  /S/ KELLY TUCEK

                            By:   Kelly Tucek
                                  Principal Financial Officer and
                                  Principal Accounting Officer
                            Date: May 15, 1998





















                                     -12-