SECURITIES AND EXCHANGE COMMISSION

                          WASHINGTON, DC  20549

                                FORM 10-Q

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

                     SECURITIES EXCHANGE ACT OF 1934

                 For the Quarter Ended September 30, 1995


Commission File Number           0-15680


           JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
          (Exact name of registrant as specified in its charter)


             Massachusetts                        04-2921566
    (State or other Jurisdiction of             (IRS Employer
     Incorporation or Organization)          Identification No.)


    200 Berkeley Street, Boston, MA                 02117
(Address of Principal Executive Office)           (Zip Code)


                              (800) 722-5457
           (Registrant's telephone number, including area code)


                              Not Applicable
              (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










<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)



                                  INDEX



PART I:   FINANCIAL INFORMATION                                      PAGE

  Item 1 -    Financial Statements:

               Balance Sheets at September 30, 1995 and
               December 31, 1994                                      3-4
               
               Statements of Operations for the Three and
               Nine Months Ended September 30, 1995 and 1994            5
               
               Statements of Partners' Equity for the
               Nine Months Ended September 30, 1995 and
               for the Year Ended December 31, 1994                     6
               
               Statements of Cash Flows for the Nine
               Months Ended September 30, 1995 and 1994                 7
               
               Notes to Financial Statements                         8-12
               
  Item 2 -    Management's Discussion and Analysis of
               Financial Condition and Results of Operations        13-19


PART II:  OTHER INFORMATION                                            20
























                                    2
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      PART I:  FINANCIAL INFORMATION

                      Item 1:  Financial Statements

                              BALANCE SHEETS
                               (Unaudited)

                                  ASSETS
<TABLE>
<CAPTION>
                                                           September 30,   December 31,
                                                                1995           1994
                                                                ----           ----
<S>                                                             <C>            <C>
Current assets:

 Cash and cash equivalents                                  $3,180,580     $3,124,999
 Restricted cash                                                 6,778         22,457
 Other current assets                                          195,646         68,354
                                                           -----------    -----------
   Total current assets                                      3,383,004      3,215,810

Investment in property:

 Land                                                        8,934,077      8,934,077
 Buildings and improvements                                 29,174,904     29,174,904
                                                           -----------    -----------
                                                            38,108,981     38,108,981
 Less:    accumulated depreciation                         (8,167,312)    (7,453,459)
                                                           -----------    -----------
                                                            29,941,669     30,655,522

Long-term restricted cash                                       40,014         22,166

Deferred expenses, net of accumulated
 amortization of $773,937 in 1995 and
 $673,932 in 1994                                              479,081        431,741
                                                           -----------    -----------
   Total assets                                            $33,843,768    $34,325,239
                                                           ===========    ===========
</TABLE>











                          Continued on next page

                                    3
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                        BALANCE SHEETS (Continued)
                               (Unaudited)

                     LIABILITIES AND PARTNERS' EQUITY
<TABLE>
<CAPTION>
                                                           September 30,   December 31,
                                                                1995           1994
                                                                ----           ----
<S>                                                             <C>            <C>
Current liabilities:

 Accounts payable and accrued expenses                        $388,874       $251,976
 Accounts payable to affiliates                                 53,454         47,965
                                                           -----------    -----------
   Total current liabilities                                   442,328        299,941

Partners' equity/(deficit):

 General Partner                                             (199,247)      (193,008)
 Limited Partners                                           33,600,687     34,218,306
                                                           -----------    -----------
   Total partners' equity                                   33,401,440     34,025,298
                                                           -----------    -----------
   Total liabilities and partners' equity                  $33,843,768    $34,325,239
                                                           ===========    ===========
</TABLE>

























                    See Notes to Financial Statements

                                    4
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                         STATEMENTS OF OPERATIONS
                               (Unaudited)
<TABLE>
<CAPTION>
                                                    Three Months Ended        Nine Months Ended
                                                      September 30,             September 30,
                                                    1995           1994        1995        1994
                                                    ----           ----        ----        ----
<S>                                                 <C>            <C>         <C>         <C>
Income:
  Rental income                                  $731,426       $888,415   $2,300,071  $2,761,825
  Interest income                                  43,740         31,661      128,748      74,268
  Other income                                     82,008              -       82,008           -
                                                 --------       --------   ----------  ----------
   Total income                                   857,174        920,076    2,510,827   2,836,093

Expenses:
  Depreciation                                    237,951        243,181      713,853     729,542
  Property operating expenses                     133,696         75,383      361,319     246,325
  General and administrative expenses              46,390         41,482      160,816     135,100
  Amortization of deferred expenses                35,030         37,069      100,005     113,772
  Management fee                                   20,985         20,985       62,955      62,955
  Property write-down                                   -        512,000            -     512,000
                                                 --------       --------   ----------  ----------
   Total expenses                                 474,052        930,100    1,398,948   1,799,694
                                                 --------       --------   ----------  ----------
   Net income/(loss)                             $383,122      ($10,024)   $1,111,879  $1,036,399
                                                 ========       ========   ==========  ==========

Allocation of net income/(loss):
  General Partner                                  $3,831         ($100)      $11,119     $10,364
  John Hancock Limited Partner                   (19,477)       (19,477)     (58,431)    (58,431)
  Investors                                       398,768          9,553    1,159,191   1,084,466
                                                 --------       --------   ----------  ----------
                                                 $383,122      ($10,024)   $1,111,879  $1,036,399
                                                 ========       ========   ==========  ==========

Net income per Unit                                  $4.35          $0.10      $12.65       $11.83
                                                 ========       ========   ==========  ==========
</TABLE>












                    See Notes to Financial Statements

                                    5
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      STATEMENTS OF PARTNERS' EQUITY
                               (Unaudited)

                 Nine Months Ended September 30, 1995 and
                       Year Ended December 31, 1994

<TABLE>
<CAPTION>
                                                                 General     Limited
                                                                 Partner     Partners     Total
                                                                 -------     --------     -----
<S>                                                                <C>         <C>         <C>

Partners' equity/(deficit) at January 1, 1994
 (91,647 Units outstanding)                                   ($184,837)  $35,027,232 $34,842,395

Less:   Cash distributions                                      (23,143)  (2,291,175) (2,314,318)

Add:    Net income                                                14,972    1,482,249   1,497,221
                                                                --------  ----------- -----------

Partners' equity/(deficit) at December 31, 1994
 (91,647 Units outstanding)                                    (193,008)   34,218,306  34,025,298

Less:   Cash distributions                                      (17,358)  (1,718,379) (1,735,737)

Add:    Net income                                                11,119    1,100,760   1,111,879
                                                                --------  ----------- -----------

Partners' equity/(deficit) at September 30, 1995
 (91,647 Units outstanding)                                   ($199,247)  $33,600,687 $33,401,440
                                                                ========  =========== ===========
</TABLE>



















                    See Notes to Financial Statements

                                    6
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                         STATEMENTS OF CASH FLOWS
                               (Unaudited)
<TABLE>
<CAPTION>
                                                                       Nine Months Ended
                                                                         September 30,
                                                                     1995             1994
                                                                     ----             ----
<S>                                                                  <C>              <C>
Operating activities:
 Net income                                                      $1,111,879       $1,036,399
 Adjustments to reconcile net income to net
  cash provided by operating activities:
   Amortization of deferred expenses                                100,005          113,772
   Depreciation                                                     713,853          729,542
   Property write-down                                                    -          512,000
                                                                 ----------       ----------
                                                                  1,925,737        2,391,713

 Changes in operating assets and liabilities:
   Increase in restricted cash                                      (2,169)            (493)
   Increase in other current assets                               (127,292)         (93,757)
   Increase in accounts payable and
     accrued expenses                                               136,898          139,649
   Increase/(decrease) in accounts payable
     to affiliates                                                    5,489          (1,480)
                                                                 ----------       ----------
      Net cash provided by operating activities                   1,938,663        2,435,632

Investing activities:
 Increase in deferred expenses                                    (147,345)         (23,634)
                                                                 ----------       ----------
      Net cash used in investing activities                       (147,345)         (23,634)

Financing activities:
 Cash distributed to Partners                                   (1,735,737)      (1,735,737)
                                                                 ----------       ----------
      Net cash used in financing activities                     (1,735,737)      (1,735,737)
                                                                 ----------       ----------
      Net increase in cash and cash
        equivalents                                                  55,581          676,261

      Cash and cash equivalents at
        beginning of year                                         3,124,999        2,359,803
                                                                 ----------       ----------
      Cash and cash equivalents at
        end of period                                            $3,180,580       $3,036,064
                                                                 ==========       ==========
</TABLE>



                    See Notes to Financial Statements

                                    7
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                      NOTES TO FINANCIAL STATEMENTS
                               (Unaudited)

1. Organization of Partnership
   ---------------------------
     John Hancock Realty Income Fund Limited Partnership (the
     "Partnership") was formed under the Massachusetts Uniform Limited
     Partnership Act on June 12, 1986.  As of September 30, 1995, the
     Partnership consisted of John Hancock Realty Equities, Inc. (the
     "General Partner"), a wholly-owned, indirect subsidiary of John
     Hancock Mutual Life Insurance Company; John Hancock Realty Funding,
     Inc. (the "John Hancock Limited Partner"); and 4,220 Investor Limited
     Partners (the "Investors"), owning 91,647 Units of Investor Limited
     Partnership Interests (the "Units").  The John Hancock Limited Partner
     and the Investors are collectively referred to as the Limited
     Partners.  The initial capital of the Partnership was $2,000,
     representing capital contributions of $1,000 from the General Partner
     and $1,000 from the John Hancock Limited Partner.  The Amended
     Agreement of Limited Partnership of the Partnership (the "Partnership
     Agreement") authorized the issuance of up to 100,000 Units of Limited
     Partnership Interests at $500 per Unit.  During the offering period,
     which terminated on September 9, 1987, 91,647 Units were sold and the
     John Hancock Limited Partner made additional capital contributions of
     $7,330,760.  There have been no changes in the number of Units
     outstanding subsequent to the termination of the offering period.  The
     Partnership is engaged in the business of acquiring, improving,
     operating, holding for investment and disposing of existing, income-
     producing, commercial and industrial properties on an all-cash basis,
     free and clear of mortgage indebtedness.  Although the Partnership's
     properties were acquired and are held free and clear of mortgage
     indebtedness, the Partnership may incur mortgage indebtedness on its
     properties under certain circumstances, as described in the
     Partnership Agreement.

     The latest date on which the Partnership is due to terminate is
     December 31, 2016, unless it is sooner terminated in accordance with
     the terms of the Partnership Agreement.  It is expected that in the
     ordinary course of the Partnership's business, the properties of the
     Partnership will be disposed of, and the Partnership terminated,
     before December 31, 2016.

2. Significant Accounting Policies
   -------------------------------
     The accompanying unaudited financial statements have been prepared in
     accordance with generally accepted accounting principles for interim
     financial information and with the instructions to Form 10-Q and Rule
     10-01 of Regulation S-X.  Accordingly, they do not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.  In the opinion of
     management, all adjustments (consisting of normal recurring accruals)
     considered necessary for a fair presentation have been included.
     Operating results for the nine month period ended September 30, 1995
     are not necessarily indicative of the results that may be expected for
     the year ending December 31, 1995.  For further information, refer to
     the financial statements and footnotes thereto included in the
     Partnership's Annual Report on Form 10-K for the year ended December
     31, 1994.






                                    8
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

2. Significant Accounting Policies (continued)
   -------------------------------
     Cash equivalents are highly liquid investments with maturities of
     three months or less when purchased.  These investments are recorded
     at cost plus accrued interest, which approximates market value.
     Restricted cash represents funds restricted for tenant security
     deposits and other escrows, and has been designated as short or long-
     term, based upon the term of the related lease agreement.

     Investments in property are recorded at cost less any property write-
     downs for permanent impairment in values.  Cost includes the initial
     purchase price of the property plus acquisition and legal fees, other
     miscellaneous acquisition costs, and the cost of significant
     improvements.

     Depreciation has been provided on a straight-line basis over the
     estimated useful lives of the various assets:  thirty years for the
     buildings and five years for related improvements.  Maintenance and
     repairs are charged to operations as incurred.

     Deferred expenses relating to tenant improvements and lease
     commissions are amortized on a straight-line basis over the terms of
     the leases to which they relate.  Subsequent to June 30, 1993, the
     Partnership reduced the period over which its remaining deferred
     acquisition fees are amortized from thirty years, the estimated useful
     life of the buildings owned by the Partnership, to four and one-half
     years, the then estimated remaining life of the Partnership.

     The net income per Unit for the periods hereof are computed by
     dividing the Investors' share of net income by the number of Units
     outstanding at the end of such period.

     No provision for income taxes has been made in the financial
     statements as such taxes are the responsibility of the individual
     partners and not of the Partnership.


3. The Partnership Agreement
   -------------------------
     Distributable Cash from Operations (as defined in the Partnership
     Agreement) is distributed 99% to the Limited Partners and 1% to the
     General Partner.  The Limited Partners' share of Distributable Cash
     from Operations is distributed as follows:  first, to the Investors
     until they receive a 7% non-cumulative, non-compounded annual cash
     return on their Invested Capital (as defined in the Partnership
     Agreement); second, to the John Hancock Limited Partner until it
     receives a 7% non-cumulative, non-compounded annual cash return on its
     Invested Capital; and third, to the Investors and the John Hancock
     Limited Partner in proportion to their respective Capital
     Contributions (as defined in the Partnership Agreement).  However, any
     Distributable Cash from Operations which is available as a result of
     the reduction of working capital reserves funded by Capital
     Contributions of the Investors is distributed 100% to the Investors.




                                    9
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

3. The Partnership Agreement (continued)
   -------------------------
     Profits for tax purposes from the normal operations of the Partnership
     for each fiscal year are allocated to the Limited Partners and General
     Partner in the same amounts as Distributable Cash from Operations for
     that year.  If such profits are less than Distributable Cash from
     Operations for any year, they are allocated in proportion to the
     amounts of Distributable Cash from Operations for that year.  If such
     profits are greater than Distributable Cash from Operations for any
     year, they are allocated 99% to the Limited Partners and 1% to the
     General Partner, with the allocation made between the John Hancock
     Limited Partner and the Investors in proportion to their respective
     Capital Contributions.  Losses for tax purposes from the normal
     operations of the Partnership are allocated 99% to the Limited
     Partners and 1% to the General Partner, with the allocation made
     between the John Hancock Limited Partner and the Investors in
     proportion to their respective Capital Contributions.  However, tax
     deductions arising from the Initial Expenses (as defined in the
     Partnership Agreement) which are paid by the Partnership from the
     Capital Contributions made by the John Hancock Limited Partner and all
     other tax aspects of the Partnership's payment of the Initial Expenses
     (as defined in the Partnership Agreement) are allocated 1% to the
     General Partner and 99% to the John Hancock Limited Partner, and not
     to the Investors.  Depreciation deductions are allocated 1% to the
     General Partner and 99% to the Investors, and not to the John Hancock
     Limited Partner.

4. Investment in Property
   ----------------------
     Investment in property at cost and reduced by write-downs consists of
     managed, fully-operating, commercial real estate as follows:
<TABLE>
<CAPTION>
                                                        September 30,      December 31,
                                                             1995              1994
                                                             ----              ----
       <S>                                                   <C>               <C>
       1300 North Dutton Avenue Office Complex           $2,835,779        $2,835,779
       Marlboro Square Shopping Center                    3,183,643         3,183,643
       Crossroads Square Shopping Center                 12,266,920        12,266,920
       Carnegie Center Office/Warehouse                   6,844,991         6,844,991
       Warner Plaza Shopping Center                       6,473,889         6,473,889
       J.C. Penney Credit Operations Center               6,503,759         6,503,759
                                                        -----------       -----------
               Total                                    $38,108,981       $38,108,981
                                                        ===========       ===========
</TABLE>
     The net realizable value of a real estate investment held for long-
     term investment purposes is measured by the recoverability of the
     investment through its expected future cash flows on an undiscounted
     basis, which may exceed the related property's current market value.
     
     The J.C. Penney Credit Operations Center is currently listed for sale.


                                    10
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

5. Deferred Expenses
   -----------------
     Deferred expenses consist of the following:
<TABLE>
<CAPTION>
                                                                 Unamortized         Unamortized
                                                                  Balance at          Balance at
                                                              September 30, 1995  December 31, 1994
                                                              ------------------  -----------------
       <S>                                                           <C>                 <C>
       $114,494 of acquisition fees paid to the General
       Partner.  This amount was amortized over a period
       of thirty years prior to June 30, 1993.  Subsequent
       to June 30, 1993, the unamortized balance is
       amortized over a period of fifty-four months.                $48,183             $64,244

       $693,000 of tenant improvements.  These amounts
       are amortized over the terms of the leases to which
       they relate.                                                 250,406             235,367

       $445,524 of lease commissions.  These amounts
       are amortized over the terms of the leases to which
       they relate.                                                 180,492             132,130
                                                                   --------            --------
                                                                   $479,081            $431,741
                                                                   ========            ========
</TABLE>

6. Transactions with the General Partner and Affiliates
   ----------------------------------------------------
     Fees and expenses incurred or paid by the General Partner or its
     affiliates on behalf of the Partnership and to which the General
     Partner or its affiliates are entitled to reimbursement from the
     Partnership were as follows:
<TABLE>
<CAPTION>
                                                                        Nine Months Ended
                                                                          September 30,
                                                                     1995                1994
                                                                     ----                ----
       <S>                                                           <C>                 <C>
       Reimbursement for operating expenses                        $112,299             $91,312
       Partnership management fee expense                            62,955              62,955
                                                                   --------            --------
                                                                   $175,254            $154,267
                                                                   ========            ========
</TABLE>
       These expenses are included in expenses on the Statements of
       Operations.




                                    11
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

                NOTES TO FINANCIAL STATEMENTS (continued)
                               (Unaudited)

6. Transactions with the General Partner and Affiliates (continued)
   ----------------------------------------------------
     Accounts payable to affiliates represents amounts due to the General
     Partner or its affiliates for various services provided to the
     Partnership.

     The General Partner serves in a similar capacity for three other
     affiliated real estate limited partnerships.

7. Federal Income Taxes
   --------------------
     A reconciliation of the net income reported in the Statements of
     Operations to the net income reported for federal income tax purposes
     is as follows:
<TABLE>
<CAPTION>
                                                                        Nine Months Ended
                                                                          September 30,
                                                                       1995              1994
                                                                       ----              ----
       <S>                                                             <C>               <C>
       Net income per Statements of Operations                     $1,111,879        $1,036,399

       Add/(deduct): Excess of tax depreciation
                      over book depreciation                         (36,500)          (17,361)
                     Excess of book amortization
                      over tax amortization                            51,852            50,642
                     Reduction of property carrying value                   -           512,000
                                                                   ----------        ----------

       Net income for federal income tax purposes                  $1,127,231        $1,581,680
                                                                   ==========        ==========
</TABLE>




















                                    12
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

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

General
-------
During the offering period from September 9, 1986 to September 9, 1987, the
Partnership sold 91,647 Units representing gross proceeds (exclusive of the
John Hancock Limited Partner's contribution which was used to pay sales
commissions, acquisition fees and organizational and offering expenses) of
$45,823,500.  The proceeds of the offering were used to acquire investment
properties and fund reserves.  A descriptive list of these properties is
set forth in Note 4 to the Financial Statements included in Item 1 of this
Report.

Liquidity and Capital Resources
-------------------------------
At September 30, 1995, the Partnership had $3,180,580 in cash and cash
equivalents, $6,778 in restricted cash and $40,014 in long-term restricted
cash.

The Partnership has established a working capital reserve with a current
balance of approximately 5% of the offering proceeds.  Liquidity would,
however, be materially adversely affected by a significant reduction in
revenues or significant unanticipated operating costs or unanticipated
capital expenditures.  If any or all of these events were to occur, to the
extent that working capital reserves would be insufficient to satisfy the
cash requirements of the Partnership, it is anticipated that additional
funds would be obtained through a further reduction of cash distributions
to Investors, bank loans, short-term loans from the General Partner or its
affiliates, or the sale or financing of Partnership properties.

During 1994, a tenant that had occupied 45% of the Carnegie Center property
did not renew its leases upon their expirations and, as a result, the
property's occupancy declined to 35%.  During the first nine months of
1995, four new tenants entered into leases representing an aggregate of
approximately 35,000 square feet, or 27% of the property.  The leases held
by three of the new tenants commenced during the first nine months of 1995,
and one of those leases was amended, effective October 1, 1995, to include
a greater amount of space.  The lease held by the fourth new tenant
commenced on November 1, 1995.  The Partnership paid approximately $95,000
in leasing costs in connection with these leases and expects to incur an
additional $15,000 in leasing costs during the fourth quarter of 1995 in
connection with the amended lease.

During the first nine months of 1995 two leases representing approximately
19,200 square feet, or 15% of the Carnegie Center property, expired.  One
tenant, occupying approximately 3,100 square feet, or 2% of the property,
and whose lease expired in March 1995, remains at the property on a month-
to-month basis.  The second tenant, who occupied approximately 16,100
square feet, or 13% of the property, through September 1995, signed a new
lease for a reduced amount of space totaling approximately 8,000 square
feet.  The Partnership paid approximately $6,500 in leasing costs during
the third quarter of 1995 in connection with this lease renewal.







                                    13
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Liquidity and Capital Resources (continued)
-------------------------------
At September 30, 1995, the Carnegie Center property was 46% occupied and,
as of the date hereof , the property is 56% occupied.  Should additional
tenants not be located to take occupancy of the remaining vacant space at
the Carnegie Center property, the Partnership's liquidity would be
materially adversely affected.  Rental rates and concessions are priced
competitively in an effort to secure new tenants as well as retain existing
tenants at the property.

The tenant that had leased all of the rentable space at the 1300 North
Dutton Avenue property did not renew its lease and vacated its space when
its lease expired on January 31, 1995.  The General Partner has been
actively seeking a replacement tenant, or tenants, for the property since
that time.  Due to competitive market conditions and a lack of demand for
office rental space in the Santa Rosa real estate market, it may not be
possible to lease the space by the end of 1995.  Should the vacant space
not be leased in the near future, the Partnership's liquidity would be
adversely affected.  For the year ended December 31, 1994, the 1300 North
Dutton Avenue property generated approximately 11% of the total rental
income earned by the Partnership.

The anchor tenant at the Marlboro Square Shopping Center property occupying
approximately 16,000 square feet, or 38% of the property, under a lease
which expires in October 1996, and whose operations at the property have
declined due to the existence of major competitors in the Marlboro Square
area, requested a reduction in its rental payments.  After a detailed
review of the Marlboro Square market and the tenant's operations, the
General Partner agreed to a reduced rental amount in return for an
agreement from the tenant to extend its lease term.  Effective June 1,
1995, the tenant's rent was reduced through October 1996, the end of its
original lease term, in exchange for an extension of the lease relating to
approximately 12,000 square feet, or 28% of the property, through 2005.
The Partnership paid $21,000 in leasing costs in connection with this lease
during the third quarter of 1995.

At September 30, 1995, Marlboro Square's occupancy was 73%.  During the
nine months ended September 30, 1995, two leases representing approximately
4,750 square feet, or 11% of the Marlboro Square property, expired.  A
tenant which had held one of these leases continues to occupy approximately
1,600 square feet, or 4% of the property, under a month-to-month lease.  In
addition, the tenant who had held the other expired lease occupies
approximately 3,000 square feet, or 7% of the property, under a month-to-
month lease.  Aside from these two month-to-month leases, there are no
leases scheduled to expire during the remainder of 1995.  Leasing activity
at the Marlboro Square property continues to be limited due to the sluggish
demand for retail space in the Marlboro, Massachusetts area.  In addition,
a new retail development near to Marlboro Square is scheduled to be
completed during the Fall of 1996.  The General Partner anticipates that
absorption of existing retail space in the Marlboro area will remain
sluggish during the remainder of 1995 due to both the lack of demand and
the pending increase in available retail space in the area.  However, the
General Partner believes that the extension of the anchor tenant's lease at
Marlboro Square should have a favorable impact on efforts to secure tenants
at the property.  The General Partner will continue to offer competitive
rental rates and concessions in an effort to retain existing tenants as
well as to lease the remaining vacant space at the property.


                                    14
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Liquidity and Capital Resources (continued)
-------------------------------
At September 30, 1995, Crossroads Square's occupancy was 92%.  During the
nine months ended September 30, 1995, a tenant that had occupied
approximately 7,200 square feet, or 4% of the property, vacated its space.
This tenant did not renew its lease upon its expiration in December 1994
but remained at the property under a month-to-month lease through March
1995.  During the third quarter of 1995, one lease representing
approximately 6,500 square feet, or 4% of the property, expired.  The
tenant holding this lease exercised its option to renew the lease for an
additional one year period.  There are no leases scheduled to expire at the
property during the fourth quarter of 1995.  The General Partner will
continue its efforts to secure new tenants for the remaining vacant space
at Crossroads Square.

At September 30, 1995, Warner Plaza was fully occupied.  During the nine
months ended September 30, 1995, two new leases representing approximately
4,200 square feet, or 5% of the property, were entered into with new
tenants.  There are no significant leases scheduled to expire at the
property during the fourth quarter of 1995.  The General Partner will
continue its efforts to retain existing tenants at Warner Plaza.

At September 30, 1995, the J.C. Penney Credit Operations Center was 100%
occupied.  During the first quarter of 1995, J.C. Penney, the sole tenant
at the J.C. Penney Credit Operations Center, extended its lease through
June 2006.  In connection with the extension of the lease, the tenant was
granted an option to terminate its lease effective on any date on or after
July 1, 2002.  In order to exercise the option, the tenant must notify the
Partnership of its intention to terminate the lease at least twelve months
in advance of the termination date specified in the notice and must pay a
termination fee of $710,325.  The Partnership did not incur any leasing
costs in connection with this lease extension.  Due to the extension of
J.C. Penney's lease at the property and current favorable real estate
market conditions in Albuquerque, New Mexico, the General Partner listed
the J.C. Penney Credit Operations Center for sale during July 1995.

During the nine months ended September 30, 1995, cash from working capital
reserves was used for the payment of leasing costs in the aggregate amount
of $147,345 incurred at the Marlboro Square, Crossroads Square, Carnegie
Center and Warner Plaza properties.  The General Partner estimates that the
Partnership will incur approximately $72,000 of additional leasing costs at
its properties during the fourth quarter of 1995.  Of this amount,
approximately $38,000 is expected to be incurred at the Crossroads Square
property, $23,000 at the Carnegie Center property, and $10,000 at the
Marlboro Square property.  In addition, the General Partner estimates that
approximately $250,000 in leasing costs will be incurred during 1996 in
connection with securing a new tenant for the 1300 North Dutton Avenue
property.  The General Partner anticipates that the current balance in the
working capital reserve will be sufficient to pay such costs.

During the nine months ended September 30, 1995, approximately $102,000 of
cash from operations was used to fund non-recurring repair and maintenance
expenses incurred at the Crossroads Square, Carnegie Center and Warner
Plaza properties.  The General Partner estimates that the Partnership will
incur additional non-recurring repair and maintenance expenses of
approximately $70,000 at its properties during the remainder of 1995.
These additional expenses will be funded from the operations of the
Partnership's properties and are not expected to have a significant impact
on the Partnership's liquidity.

                                    15
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Liquidity and Capital Resources (continued)
-------------------------------
Cash in the aggregate amount of $1,735,737, generated from the
Partnership's operations, was distributed to the General Partner and the
Limited Partners during the nine months ended September 30, 1995.  The
General Partner currently anticipates that the Partnership will make a
distribution during the fourth quarter of 1995 comparable to the
distributions made during each of the first three quarters of 1995.

The General Partner had the 1300 North Dutton Avenue Office Complex
property independently appraised during the third quarter of 1995.  Based
upon the appraiser's investigation and analysis, the property's market
value was estimated to be approximately $1,725,000 at September 30, 1995.
The net book value of the 1300 North Dutton Avenue Office Complex property
of approximately $2,119,000 at September 30, 1995 was evaluated in
comparison to the estimated future undiscounted cash flows and the recent
independent appraisal and, based upon such evaluation, the General Partner
determined that no permanent impairment in value existed and that a write-
down in value was not required.  The Partnership's cumulative investment in
the property, before accumulated depreciation and property write-downs, is
approximately $3,378,000.

The General Partner evaluated the carrying value of the Carnegie Center
property during the third quarter of 1994 by comparing it to its future
undiscounted cash flows and its then most recent internal appraisal in
order to determine whether a permanent impairment in value existed.  Based
on such evaluation, the General Partner determined that a write-down of
$512,000 was required at that time to reflect the estimated permanent
impairment in the value of the Carnegie Center property.  Lower rental
rates and weak absorption of available office/industrial properties in
Cincinnati, Ohio, in general, have resulted in a decline in this property's
market value.  The carrying value of the Carnegie Center property at
December 31, 1994 was evaluated in comparison to the estimated future cash
flows and a recent internal appraisal and, based upon such evaluation, the
General Partner determined that no further permanent impairment in value
existed and, therefore, an additional write-down in value was not required
as of December 31, 1994.

The General Partner also evaluated the carrying value of each of the
Partnership's other properties as of December 31, 1994 by comparing such
value to the respective property's future undiscounted cash flows and the
then most recent independent or internal appraisals.  Based on such
evaluations, the General Partner determined that no permanent impairment in
values existed with respect to these properties and no additional write-
downs were recorded as of December 31, 1994.

The General Partner will continue to conduct property valuations, using
internal or independent appraisals, in order to determine whether a
permanent impairment in value exists on any of the Partnership's
properties.









                                    16
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Results of Operations
---------------------
Net income for the nine months ended September 30, 1995 was $1,111,879 as
compared to net income of $1,036,399 for the same period in 1994.  Included
in the results for the nine months ended September 30, 1994 is the property
write-down on Carnegie Center in the amount of $512,000.  Excluding this
write-down net income decreased due to declines in the performance of the
Carnegie Center, 1300 North Dutton Avenue and Marlboro Square properties.
These declines were partially offset by increases in the performance of the
Crossroads Square and Warner Plaza properties.

Average occupancy for the Partnership's properties for the nine months ended
September 30, 1995 was as follows:

       1300 North Dutton Avenue Office Complex                  11%
       Marlboro Square Shopping Center                          73%
       Crossroads Square Shopping Center                        94%
       Carnegie Center Office/Warehouse                         45%
       Warner Plaza Shopping Center                             99%
       J.C. Penney Credit Operations Center                    100%

Rental income for the nine months ended September 30, 1995 decreased by
$461,754, or 17%, as compared to the same period in 1994.  This decrease is
primarily due to decreases in rental income at the 1300 North Dutton Avenue,
Carnegie Center and Marlboro Square properties which were partially offset
by increases in rental income at the Crossroads Square and Warner Plaza
properties.  Rental income at the 1300 North Dutton Avenue property
decreased by 89% between periods due to the expiration on January 31, 1995
of the lease held by the sole tenant at the property.  Rental income at the
Carnegie Center property decreased by 52% between periods due to a decline
in average occupancy from 75% to 45%.  Rental income at the Marlboro Square
property decreased by 21% between periods primarily due to a 8% decline in
average occupancy.  In addition, rental income at Marlboro Square also
decreased due to a significant reduction in the rental rate paid by the
anchor tenant since June 1, 1995.  These decreases in rental income were
partially offset by increases in rental income of approximately 5% and 7% at
the Crossroads Square and Warner Plaza properties, respectively.  Rental
income at the J.C. Penney Credit Operations Center was consistent between
periods.

Interest income for the nine months ended September 30, 1995 increased by
$54,480, or 73%, as compared to the same period in 1994.  This increase is
primarily due to an increase in the interest rates earned on the
Partnership's working capital reserves as well as an increase in the amount
of such reserves.

During the third quarter of 1995, the Partnership collected approximately
$82,000 from the former tenant at the 1300 North Dutton Avenue property
because of alterations it made to the property without the consent of the
General Partner, as required under the terms of its lease agreement.  The
General Partner has decided, however, not to return the space to its
original form because sources in the Santa Rosa area where this property is
located have stated that the alterations made to the property will not
negatively impact the General Partner's efforts to lease the property.




                                    17
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Results of Operations (continued)
---------------------
Property operating expenses for the nine months ended September 30, 1995
increased by $114,994, or 47%, as compared to the same period in 1994.  This
increase is primarily due to increases in the Partnership's share of
operating expenses at the Carnegie Center, Crossroads Square and Marlboro
Square properties.  The Partnership's share of property operating expenses
increased at the Marlboro Square and Carnegie Center properties between
periods primarily due to decreases in average occupancy at both properties,
and therefore, decreases in tenant reimbursements for such expenses.  In
addition, during the second and third quarters of 1995, the Carnegie Center
property incurred approximately $60,000 in non-recurring maintenance and
repair expenses relating primarily to repairs made to the electrical system,
roof, certain heating and air conditioning units, and repairs to better
market vacant space at the property.  The Crossroads Square property
incurred approximately $21,000 of non-recurring maintenance and repair
expenses during the nine months ended September 30, 1995 to improve the
appearance of the center and maintain its competitive position in the
marketplace.  The increases in the Partnership's share of property operating
expenses at the Carnegie Center, Crossroads Square and Marlboro Square
properties were partially offset by decreases in the Partnership's share of
property operating expenses at the Warner Plaza and 1300 North Dutton Avenue
properties.  The Partnership's share of property operating expenses
decreased at Warner Plaza between periods primarily due to non-recurring
maintenance and repair costs which were incurred during the nine month
period ended September 30, 1994.  The 1300 North Dutton Avenue property has
incurred only minor routine maintenance expenses since it became vacant in
January 1995, resulting in a decrease in the Partnership's share of property
operating expenses during the nine months ended September 30, 1995 as
compared to the same period during 1994.

General and administrative expenses for the nine months ended September 30,
1995 increased by $25,716, or 19%, as compared to the same period in 1994.
This increase is primarily due to an increase in the time required to be
expended by the General Partner in connection with managing the
Partnership's properties, including focusing on increasing their
occupancies.  In addition, general and administrative expenses increased
due to legal fees incurred primarily in connection with the leases entered
into at two of the Partnership's properties during the nine months ended
September 30, 1995, and to an increase in postage charges on investor
mailings resulting from the increase in postal rates.

Amortization of deferred expenses for the nine months ended September 30,
1995 decreased by $13,767, or 12%, as compared to the same period in 1994.
This decrease is primarily due to the expiration of certain leases at the
1300 North Dutton Avenue, Warner Plaza and Marlboro Square properties and
the full amortization of the related deferred leasing costs.

As referred to above, declining market conditions within the Cincinnati,
Ohio market where the Carnegie Center property is located have permanently
impaired the Carnegie Center's value.  As a result, during the third
quarter of 1994 the General Partner reduced the carrying value of the
property by $512,000 which was charged directly to operations.

The General Partner believes that inflation has had no significant impact
on the Partnership's operations during the nine months ended September 30,
1995, and the General Partner anticipates that inflation will not have a
significant impact during the remainder of 1995.
                                    18
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)

Item 2:  Management's Discussion and Analysis of Financial Condition and
Results of Operations (continued)

Cash Flow
---------
The following table provides the calculations of Cash from Operations and
Distributable Cash from Operations which are calculated in accordance with
Section 17 of the Partnership Agreement:
<TABLE>
<CAPTION>
                                                                     Nine Months Ended
                                                                       September 30,
                                                                     1995           1994
                                                                     ----           ----
<S>                                                                  <C>            <C>
Net cash provided by operating activities (a)                    $1,938,663     $2,435,632
Net change in operating assets and liabilities (a)                 (12,926)       (43,919)
                                                                 ----------     ----------
Cash provided by operations (a)                                   1,925,737      2,391,713
Increase in working capital reserves                              (190,000)      (655,976)
Add:   Accrual basis Partnership
       management fee                                                62,955         62,955
                                                                 ----------     ----------
Cash from operations (b)                                          1,798,692      1,798,692
Decrease in working capital reserves                                      -              -
Less:  Accrual basis Partnership
       management fee                                              (62,955)       (62,955)
                                                                 ----------     ----------
Distributable cash from operations (b)                           $1,735,737     $1,735,737
                                                                 ==========     ==========

Allocation to General Partner                                       $17,358        $17,358
Allocation to John Hancock Limited Partner                                -              -
Allocation to Investors                                           1,718,379      1,718,379
                                                                 ----------     ----------
Distributable cash from operations (b)                           $1,735,737     $1,735,737
                                                                 ==========     ==========
</TABLE>
(a)  Net cash provided by operating activities, net change in operating
     assets and liabilities, and cash provided by operations are as
     calculated in the Statements of Cash Flows included in Item 1 of this
     Report.

(b)  As defined in the Partnership Agreement.  Distributable Cash from
     Operations should not be considered as an alternative to net income
     (i.e. not an indicator of performance) or to reflect cash flows or
     availability of discretionary funds.

During the fourth quarter of 1995, the Partnership expects to make a cash
distribution of $572,793, representing a 5% annualized return, to all
Investors of record at September 30, 1995, based on Distributable Cash from
Operations for the quarter then ended.





                                    19
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)


                       PART II:  OTHER INFORMATION


Item 1. Legal Proceedings

        There are no material pending legal proceedings, other than
        ordinary routine litigation incidental to the business of the
        Partnership, to which the Partnership is a party or to which any
        of its properties are subject.

Item 2. Changes in Securities

        There were no changes in securities during the third quarter of
        1995.

Item 3. Defaults Upon Senior Securities

        There were no defaults upon senior securities during the third
        quarter of 1995.

Item 4. Submission of Matters to a Vote of Security Holders

        There were no matters submitted to a vote of security holders of
        the Partnership the third quarter of 1995.

Item 5. Other information


Item 6. Exhibits and Reports on Form 8-K

        (a) There are no exhibits to this report.
        (b)  There were no Reports on Form 8-K filed during the third
             quarter of 1995.
























                                    20
<PAGE>
            JOHN HANCOCK REALTY INCOME FUND LIMITED PARTNERSHIP
                   (A Massachusetts Limited Partnership)


                                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, on the 14th day of November, 1995.


                               John Hancock Realty Income Fund
                               Limited Partnership


                               By: John Hancock Realty Equities, Inc.,
                                   General Partner



                                   By:  WILLIAM M. FITZGERALD
                                        -------------------------------
                                        William M. Fitzgerald, President



                                   By:  RICHARD E. FRANK
                                        -------------------------------
                                        Richard E. Frank, Treasurer
                                        (Chief Accounting Officer)