FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1996

                                       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 Number: 0-10363


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP.
             (Exact name of registrant as specified in its charter)

                  California                             95-3523265
        (State or other jurisdiction of               (I.R.S. Employer
        incorporation or organization)               Identification No.)

     400 South El Camino Real, Suite 1100
             San Mateo, California                         94402-1708
   (Address of principal executive offices)                (Zip Code)

                                 (415) 343-9300
                         (Registrant's telephone number)

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



       Total number of units outstanding as of September 30, 1996: 18,346



                                  Page 1 of 12

<PAGE>



Part I.           FINANCIAL INFORMATION

Item 1.           Financial Statements.
<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                                 Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)
<CAPTION>

                                                                      September
30,              December 31,
                                                                           1996
                     1995

<S>                                                                 <C>        
                 <C>
Assets
Real estate investments:
    Rental property, net of accumulated
       depreciation of $2,415 and $2,270
       at September 30, 1996 and
       December 31, 1995, respectively                               $       
3,562              $        3,704
    Land held for development                                                
1,854                       1,835
                                                                    
--------------              --------------
           Total real estate investments                                     
5,416                       5,539

Cash                                                                           
---                          83
Accounts receivable, net                                                       
  1                          25
Deferred financing costs and other fees,
    net of accumulated amortization of $174
    and $167 at September 30, 1996
    and December 31, 1995, respectively                                        
 39                          38
Other assets                                                                   
 13                           6
                                                                    
--------------              --------------

           Total assets                                              $       
5,469              $        5,691
                                                                    
==============              ==============


</TABLE>













                                  - continued -

                                  Page 2 of 12

<PAGE>


<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                           Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)
<CAPTION>

                                                                      September
30,              December 31,
                                                                          1996 
                     1995
<S>                                                                  <C>       
                 <C>

Liabilities and Partners' Equity (Deficit)
Liabilities:
    Accounts payable and accrued expenses                            $         
 54              $           20
    Interest payable                                                           
 17                          15
    Notes payable                                                            
1,918                       1,846
    Other liabilities                                                          
 22                          17
                                                                    
--------------              --------------

       Total liabilities                                                     
2,011                       1,898
                                                                    
--------------              --------------

Partners' Equity (Deficit):
    General partners                                                           
(10)                         (3)
    Limited partners, 18,346 and 18,350
       limited partnership units outstanding
       at September 30, 1996 and
       December 31, 1995, respectively                                       
3,468                       3,796
                                                                    
--------------              --------------

           Total partners' equity                                            
3,458                       3,793
                                                                    
--------------              --------------

              Total liabilities and partners' equity                 $       
5,469              $        5,691
                                                                    
==============              ==============






</TABLE>











                 See accompanying notes to financial statements.

                                  Page 3 of 12

<PAGE>

<TABLE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                            Statements of Operations
                     (in thousands, except per unit amounts)
                                   (Unaudited)
<CAPTION>

                                                                     Three
Months Ended                   Nine Months Ended
                                                                       
September 30,                        September 30,
                                                               
---------------------------             ---------------------
                                                               1996            
   1995                 1996                1995
                                                            ----------         
----------           ----------          -------
<S>                                                         <C>               
<C>                  <C>                 <C>
Revenues:
    Rental income                                           $       110       
$       149          $       384         $       471
    Interest and other income                                       ---        
       ---                   11                   1
                                                            -----------       
-----------          -----------         -----------

          Total revenues                                            110        
       149                  395                 472
                                                            -----------       
-----------          -----------         -----------

Expenses:
    Operating                                                        68        
        75                  211                 223
    Interest                                                         49        
        46                  140                 137
    Depreciation and amortization                                    50        
        51                  149                 158
    General and administative                                        56        
        53                  192                 170
    Expenses associated with undeveloped
      land                                                           11        
        13                   38                  38
                                                            -----------       
-----------          -----------         -----------

          Total expenses                                            234        
       238                  730                 726
                                                            -----------       
-----------          -----------         -----------

Net loss                                                    $      (124)      
$       (89)         $      (335)        $      (254)
                                                            ===========       
===========          ===========         ===========

Net loss per limited partnership unit                       $     (6.65)      
$     (4.74)         $    (17.88)        $    (13.56)
                                                            ===========       
===========          ===========         ===========

Weighted average  number of limited  partnership
    units  outstanding  during the period used to
    compute net loss and distributions per
    limited partnership unit                                     18,346        
    18,359               18,348              18,359
                                                            ===========       
===========          ===========         ===========

</TABLE>











                 See accompanying notes to financial statements.

                                  Page 4 of 12

<PAGE>

<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                    Statements of Partners' Equity (Deficit)
                                 (in thousands)

              For the nine months ended September 30, 1996 and 1995
                                   (Unaudited)


<CAPTION>

                                                             General           
  Limited
                                                             Partners          
 Partners               Total

<S>                                                       <C>                  
<C>                 <C>         
Balance at December 31, 1995                              $          (3)       
$      3,796        $       3,793

Net loss                                                             (7)       
        (328)                (335)
                                                          -------------        
------------        -------------

Balance at September 30, 1996                             $         (10)       
$      3,468        $       3,458
                                                          =============        
============        =============



Balance at December 31, 1994                              $           4        
$      4,154        $       4,158

Net loss                                                             (5)       
        (249)                (254)
                                                          -------------        
------------        -------------

Balance at September 30, 1995                             $          (1)       
$      3,905        $      (3,904)
                                                          =============        
============        =============




</TABLE>













                 See accompanying notes to financial statements.

                                  Page 5 of 12

<PAGE>

<TABLE>

                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                     Statements of Cash Flows (in thousands)
                                   (Unaudited)
<CAPTION>
                                                                               
       Nine months ended
                                                                               
          September 30,
                                                                               
 1996                     1995
<S>                                                                         
<C>                       <C>
Cash flows from operating activities:
  Net loss                                                                   $ 
   (335)               $     (254)
Adjustments to reconcile net loss to net cash
 used for operating activities:
    Depreciation and amortization                                              
    149                       158
    Amortization of loan fees, included in
     interest expense                                                          
      3                         3
Changes in certain assets and liabilities:
    Accounts receivable                                                        
     24                         5
    Deferred financing costs and other fees                                    
     (8)                       (3)
    Other assets                                                               
     (7)                        4
    Accounts payable and accrued expenses                                      
     34                        36
    Payable to Sponsor                                                         
    ---                      (109)
    Interest payable                                                           
      2                        15
    Other liabilities                                                          
      5                        (4)
                                                                            
----------                ----------

       Net cash used for operating activities                                  
   (133)                     (149)
                                                                            
----------                ----------

Cash flows from investing activities:
    Additions to real estate                                                   
    (22)                       (6)
                                                                            
----------                ----------

       Net cash used for investing activities                                  
    (22)                       (6)
                                                                            
----------                ----------

Cash flows from financing activities:
    Proceeds from notes payable                                                
     90                       ---
    Note payable principal payments                                            
    (18)                      (16)
                                                                            
----------                ----------

       Net cash provided by (used for)
        financing activities                                                   
     72                       (16)
                                                                            
----------                ----------

Net decrease in cash                                                           
    (83)                     (171)
                                                                            
----------                ----------

Cash at beginning of period                                                    
     83                       385
                                                                            
----------                ----------

Cash at end of period                                                        $ 
    ---                $      214
                                                                            
==========                ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                     $ 
    134                $      119
                                                                            
==========                ==========
</TABLE>
                 See accompanying notes to financial statements.

                                  Page 6 of 12

<PAGE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 30, 1996
                                   (Unaudited)

Note 1.           THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial  Corporation  (RFC) and Daniel Lee Stephenson
(the  Sponsors) and  Glenborough  Inland Realty  Corporation,  the  accompanying
unaudited  financial  statements  contain all  adjustments  (consisting  of only
normal  accruals)  necessary to present fairly the financial  position of Rancon
Realty  Fund  I,  A  California  Limited  Partnership  (the  Partnership)  as of
September  30,  1996 and  December  31,  1995,  and the  related  statements  of
operations for the three and nine months ended  September 30, 1996 and 1995, and
changes in partners'  equity and cash flows for the nine months ended  September
30, 1996 and 1995.

Allocation of profits,  losses,  cash  distributions  from  operations  and cash
distributions  from sales or  financing  are made  pursuant  to the terms of the
Partnership  Agreement which  generally  allocates such items 98% to the limited
partners and 2% to the general partners.

In December,  1994, RFC entered into an agreement with Glenborough Inland Realty
Corporation  (Glenborough)  whereby  RFC sold to  Glenborough  the  contract  to
perform  the  rights  and  responsibilities   under  RFC's  agreement  with  the
Partnership   and  other   related   Partnerships   (collectively,   the  Rancon
Partnerships) to perform or contract on the Partnership's  behalf for financial,
accounting,  data processing,  marketing,  legal, investor relations,  asset and
development  management and consulting services for the Partnership for a period
of ten years or until the liquidation of the Partnership, whichever comes first.
According to the contract, the Partnership will pay Glenborough for its services
as follows: (i) a specified asset administration fee of $159,000 per year, which
is fixed for five years and subject to reduction in the year  following the sale
of assets;  (ii) sales fees of 2% for improved  properties;  (iii) a refinancing
fee of 2% and (iv) a management fee of 5% of gross rental  receipts.  As part of
this  agreement,  Glenborough  will  perform  certain  responsibilities  for the
general  partner of the Rancon  Partnerships  and RFC agreed to  cooperate  with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners to substitute itself as the Sponsor for the Rancon  Partnerships.  This
agreement was effective January 1, 1995. Glenborough is not an affiliate of RFC.

As a result of this agreement,  RFC terminated  several of its employees between
December 31, 1994 and February  28,  1995.  Also as a result of this  agreement,
certain of the officers of RFC resigned from their positions  effective February
28, 1995, March 31, 1995 and July 1, 1995.

During the quarter  ended June 30, 1996,  4 units were  abandoned as a result of
partners  desiring to no longer receive  Partnership  K-1's and to give them the
ability to write-off  investments for income tax purposes.  The equity (deficit)
balance of the abandoned units was allocated to the remaining outstanding units.
As of September 30, 1996, limited  partnership units issued and outstanding were
18,346.


                                  Page 7 of 12

<PAGE>


                              RANCON REALTY FUND I,
                        A CALIFORNIA LIMITED PARTNERSHIP

                          Notes to Financial Statements

                               September 30, 1996
                                   (Unaudited)

Reclassification  - Certain 1995 balances have been reclassified to conform with
the current period presentation.

Note 2.           REFERENCE TO 1995 AUDITED FINANCIAL STATEMENTS
                  ----------------------------------------------

These  unaudited  financial  statements  should be read in conjunction  with the
Notes to Financial Statements included in the 1995 audited financial statements.

Note 3.           REAL ESTATE INVESTMENTS

On October 4, 1996,  the  Partnership  entered into an agreement for the sale of
the  Bowling  Center  property.  The  sales  price is  $773,000  and the sale is
expected to close escrow by December 31, 1996.

Note 4.           NOTE PAYABLE

The  Partnership  entered into a  short-term  loan with  Glenborough  to finance
current operating costs in excess of revenues. The loan accrues interest monthly
at 10% and is due and payable in September,  1998.  The  Partnership  expects to
pay-off the loan with proceeds from the sale of the Bowling Center property.


                                  Page 8 of 12

<PAGE>



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

LIQUIDITY AND CAPITAL RESOURCES

Rancon  Realty  Fund  I, a  California  Limited  Partnership  (the  Partnership)
completed  its public  offerings  of limited  partnership  units  (Units) in the
amount of $15,981,000 (net of selling and organization  expenses) in July, 1983.
As of September 30, 1996,  the  Partnership's  assets  consist  primarily of its
investments in properties, which totaled approximately $5,416,000.

The  Partnership's  primary source of funds has consisted of the proceeds of its
public  offerings of Units.  Other sources of funds have included new financing,
rental  operations,  property  sales and  interest  income on  deposits of funds
invested  temporarily,  pending their use in the development of properties.  Net
cash generated by rental operations as well as the  Partnership's  cash reserves
and  interest  income  thereon  have been used to pay  expenses  related  to the
Partnership's administrative operations.

The  Southern  California  regional  economy  in  general,  and the real  estate
industry in particular, are considered to be in a recessionary cycle. A majority
of the  Partnership's  assets are located within the Inland Empire  submarket of
the Southern California region. Consequently,  the operations of the Partnership
continue to be affected by the economic  weakness of the real estate industry in
Southern California.

The  Partnership  currently owns the following  properties:  Mountain View Plaza
Shopping Center (57,456 leasable square feet and 8.9 acres of undeveloped land),
the Bowling  Center  (24,402  leasable  square  feet),  the Auto Center  (25,760
leasable square feet),  and the Rancon Commerce Center lots (7 undeveloped  lots
totaling approximately 13.9 acres).

In 1994,  the company that owned and operated the business at the Bowling Center
attempted to sell the business without success. The lien holder on the equipment
within the  Bowling  Center  repossessed  and  removed  the  equipment  from the
building.  The Partnership has determined that the property will probably not be
leased as a bowling  center and has  marketed the property for any rental use or
sale.  As of September 30, 1996,  the Bowling  Center is in escrow to be sold by
December 31, 1996 for a purchase price of $773,000.  The proceeds from a sale of
the property would be used to paydown the Partnership's  debt and replenish cash
reserves,  which may eventually be used to fund operations of the  Partnership's
undeveloped land.

The  Rancon  Commerce  Center  lots  which are  adjacent  to a creek,  cannot be
developed until the final location of the creek  realignment has been determined
and released by the Flood Control  District.  This information is expected to be
final by the end of 1996.

The  Partnership  has two notes payable at September 30, 1996. One in the amount
of $1,828,000,  secured by Mountain View Plaza Shopping Center, matures in 2002.
The other is an  unsecured  loan in the amount of  $90,000,  due to  Glenborough
Inland Realty Corporation, and matures September, 1998.

Cash generated by rental  activities during 1996 when combined with cash on hand
has  not  been  adequate  to  cover  the  Partnership's  current  and  projected
expenditures for 1996 (see below).

                                  Page 9 of 12

<PAGE>



Management  is  currently  considering  the best action to take to satisfy  this
possible shortfall.  Options being considered include;  (i) selling a portion of
the  unimproved  land;  (ii) obtaining a working  capital line of credit;  (iii)
obtaining a new loan secured by the Auto  Center,  and (iv) sale of the Mountain
View Shopping Plaza, in order to generate  sufficient cash proceeds to place the
Partnership in a position to cover its projected  expenditures.  The Partnership
will  continue  to  monitor  market  conditions  in order to sell its  remaining
properties for the best obtainable price as conditions allow.

Accounts  payable and accrued expenses  increased  $34,000 or 170% from December
31, 1995 to September 30, 1996 as a result of a $10,000  short-term cash advance
from Glenborough  Inland Realty Corporation to supplement the Partnership's cash
flow for the period combined with a $24,000 increase in accrued property taxes.

The increase in other  liabilities  of $5,000 or 29% is primarily  related to an
increase in security deposits for the nine months ended September 30, 1996.

RESULTS OF OPERATIONS

Rental income for the nine months ended September 30, 1996 decreased  $87,000 or
18% compared to the nine months ended  September 30, 1995.  This decrease is the
result of a slight  decrease in occupancy at Mountain View Plaza combined with a
$17,000 and $18,000 decrease in the billing of prior year recoveries and current
year common area maintenance (CAM),  respectively,  from 1995 to 1996.  Expenses
were higher than budgeted in 1994 resulting in  reconciliation  of recoveries of
$33,000 in 1995 where as in 1996 the  recoveries  relating to 1995 expenses were
calculated to be $16,000.  Similarly,  expenses  related to CAM were billed at a
higher  amount  in 1995  than in 1996 and two  major  tenants  have not yet been
billed in 1996.  Occupancy  rates as of September  30, 1996 were 89%, 91% and 0%
for the  Mountain  View Plaza,  Auto Center and  Bowling  Center,  respectively,
compared to 93%, 78% and 0%, respectively, for the same periods in 1995.

Interest and other income increased  $10,000 when comparing 1996 and 1995 due to
a one-time  settlement fee of $10,000 from once potential  buyers of the Bowling
Center as a result of breaking their contract.

General and administrative costs increased by $22,000 or 13% for the nine months
ended September 30, 1996 compared to 1995. The increase is due to an increase in
general legal fees of $9,000,  investor  relations expenses of $5,000 and $7,000
in fees  incurred in  connection  with  valuations  of the  limited  partnership
interests.

                                  Page 10 of 12

<PAGE>



Part II. OTHER INFORMATION


Item 1.           Legal Proceedings

                  None.

Item 2.           Changes in Securities

                  Not applicable.

Item 3.           Defaults Upon Senior Securities

                  Not applicable.

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

                  None.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a) Exhibits:

                  #27 - Financial data schedule.

                  (b) Reports on Form 8-K:

                  None.


                                  Page 11 of 12

<PAGE>


                                   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.


                                    RANCON REALTY FUND I,
                                    a California Limited Partnership
                                    (Registrant)



Date: November 13, 1996                 By: /s/Daniel L. Stephenson
                                        Daniel L. Stephenson,
                                        General Partner and Director,
                                        President, Chief Executive Officer
                                        and Chief Financial Officer of
                                        Rancon Financial Corporation,
                                        General Partner of
                                        Rancon Realty Fund I,
                                        a California Limited Partner


                                  Page 12 of 12