FORM 10-Q



                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


           QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934


(Mark One)
{ X }  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended        June 30, 1997

{   }  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to


For Quarter Ended       June 30, 1997        Commission file number   0-15747

                      Brown-Flournoy Equity Income Fund Limited Partnership
                      (Exact Name of Registrant as Specified in its Charter)


                 Delaware                                 58-1688140
         (State or Other Jurisdiction of               (I.R.S. Employer
         Incorporation or Organization)             Identification Number)



 225 East Redwood Street, Baltimore, Maryland                 21202
   (Address of Principal Executive Offices)                (Zip Code)

        Registrant's Telephone Number, Including Area Code:     (410) 727-4083

                                               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


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              BROWN-FLOURNOY EQUITY INCOME FUND LIMITED PARTNERSHIP




                                      INDEX


                                                                        Page No.
Part I.  Financial Information


     Item 1.     Financial Statements
                 Balance Sheets                                             1
                 Statements of Operations                                   2
                 Statements of Partners' Capital                            3
                 Statements of Cash Flows                                   4
                 Notes to Financial Statements                            5-6


     Item 2.     Management's Discussion and Analysis of
                        Financial Condition and Results of Operations     7-8


Part II.   Other Information

     Item 1. through Item 6.                                                9

     Signatures                                                            10






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BROWN-FLOURNOY EQUITY INCOME FUND LIMITED PARTNERSHIP

Statements of Operations
(Unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended      Six Months Ended
                                                              June 30,   June 30,     June 30,   June 30,
                                                                1997       1996         1997       1996

Revenues
<S>                                                         <C>        <C>          <C>        <C>
 Rental income                                              $1,139,939 $1,192,847   $2,284,855 $2,342,905
 Interest income                                                16,210     14,354       30,783     28,289

                                                             1,156,149  1,207,201    2,315,638  2,371,194


Expenses
 Compensation and related benefits                             155,932    134,181      298,738    251,244
 Utilities                                                      68,364     70,597      136,727    137,794
 Property taxes                                                 93,006     92,998      186,013    183,496
 Insurance                                                      19,300     17,977       38,600     35,848
 Advertising                                                    28,213     31,596       55,987     61,269
 Maintenance and repairs                                        73,417    116,645      156,619    216,308
 Property management fee                                        56,997     59,642      114,243    117,145
 Other                                                           6,961      9,003       14,812     16,689
 Administrative and professional fees                           17,728     22,314       47,726     39,297
 Interest expense                                              490,733    483,209      962,483    967,765
 Depreciation of property and equipment                        262,600    266,257      527,121    522,037
 Amortization of loan fees                                      67,299     18,547      134,597     37,094

                                                             1,340,550  1,322,966    2,673,666  2,585,986

Net loss                                                    $ (184,401)$ (115,765)  $ (358,028)$ (214,792)


Net loss per unit of Class A limited
 partnership interest                                       $    (6.69)$    (4.20)  $   (13.00)$    (7.80)

</TABLE>


See accompanying notes to financial statements

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              BROWN-FLOURNOY EQUITY INCOME FUND LIMITED PARTNERSHIP




                                   SIGNATURES





Pursuant to the requirements of Section 13 or 15 (d) of the Securities  Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.



                                            BROWN-FLOURNOY EQUITY INCOME FUND
                                                          LIMITED PARTNERSHIP



DATE:           8/8/97                    By:    /s/ John M. Prugh
                                              John M. Prugh
                                              President and Director
                                            Brown Equity Income Properties, Inc.
                                            Administrative General Partner



DATE:           8/8/97                   By:     /s/ Timothy M. Gisriel
                                             Timothy M. Gisriel
                                            Treasurer
                                         Brown Equity Income Properties, Inc.
                                            Administrative General Partner




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