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 March 31, 1998 or

     Transition report pursuant to Section 13 or 15(d) of the Securities 
Exchange Act of 1934

For the transition period from               to              

Commission File Number:  0-20737

             AMERICA FIRST APARTMENT INVESTORS, L.P.
     (Exact name of registrant as specified in its charter)

Delaware                                                47-0797793            
(State or other jurisdiction                            (IRS Employer 
of incorporation or organization)                       Identification No.)


Suite 400, 1004 Farnam Street, Omaha, Nebraska          68102       
(Address of principal executive offices)                (Zip Code)


(402) 444-1630                              
(Registrant's telephone number, including area code)


     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>                               - i -
Part I.  Financial Information
  Item 1.  Financial Statements
AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                                              Mar. 31, 1998       Dec. 31, 1997
                                                                                             --------------      --------------
<S>                                                                                          <C>                 <C>
Assets
 Cash and temporary cash investments, at cost which
  approximates market value (Note 4)                                                         $   7,465,692       $   7,879,934
 Investment in real estate, net of accumulated depreciation (Note 6)                            63,655,299          64,267,471
 Investment in tax-exempt mortgage bonds, at estimated fair value (Note 5)                      13,006,526          13,006,526
 Interest receivable                                                                               218,216             108,623
 Other assets                                                                                    1,986,143           1,860,968
                                                                                             --------------      --------------
                                                                                             $  86,331,876       $  87,123,522 
                                                                                             ==============      ==============
Liabilities and Partners' Capital
 Liabilities                                                                                                                   
  Accounts payable (Note 9)                                                                  $   1,629,075       $   1,861,162
  Bonds payable (Note 7)                                                                        26,888,485          27,035,000 
  Due to Jefferson Place L.P.                                                                    2,400,000           2,400,000
  Distribution payable (Note 3)                                                                    329,051             329,051 
                                                                                             --------------      --------------
                                                                                                31,246,611          31,625,213
                                                                                             --------------      --------------
 Partners' Capital
  General Partner                                                                                    9,051               7,037
  Beneficial Unit Certificate Holders
  ($10.57 per BUC in 1998 and $10.65 in 1997)                                                   55,076,214          55,491,272
                                                                                             --------------      --------------
                                                                                                55,085,265          55,498,309 
                                                                                             --------------      --------------
                                                                                             $  86,331,876       $  87,123,522 
                                                                                             ==============      ==============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>



































<PAGE>                               - 1 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                                                   For the             For the
                                                                                             Quarter Ended       Quarter Ended
                                                                                             Mar. 31, 1998       Mar. 31, 1997
                                                                                             --------------      --------------
<S>                                                                                          <C>                 <C>
Income
 Rental income                                                                                   3,089,924           1,692,818 
 Mortgage bond investment income                                                             $     277,564       $     632,504 
 Interest income on temporary cash investments                                                      74,350               5,988 
                                                                                             --------------      --------------
                                                                                                 3,441,838           2,331,310
                                                                                             --------------      --------------
Expenses
 Real estate operating expenses                                                                  1,485,232             666,024 
 Depreciation                                                                                      614,274             332,889 
 Interest expense                                                                                  430,752             165,257    
 General and administrative expenses (Note 9)                                                      337,473             270,085 
                                                                                             --------------      --------------
                                                                                                 2,867,731           1,434,255
                                                                                             --------------      --------------
Net income                                                                                   $     574,107       $     897,055
                                                                                             ==============      ==============
Net income allocated to:
 General Partner                                                                             $      11,884       $      12,299 
 BUC Holders                                                                                       562,223             884,756 
                                                                                             --------------      --------------
                                                                                             $     574,107       $     897,055
                                                                                             ==============      ==============
Net income, basic and diluted, per BUC                                                       $         .11       $         .17 
                                                                                             ==============      ==============
Weighted average number of BUCs outstanding                                                      5,212,167           5,212,167
                                                                                             ==============      ==============
</TABLE>

AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
FOR THE QUARTER ENDED MARCH 31, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                                  	Beneficial Unit
                                                                                 Certificate Holders
                                                           General           
                                                           Partner           # of BUCs              Amount               Total
                                                    ---------------     ---------------     ---------------     ---------------
<S>                                                 <C>                 <C>                 <C>                 <C>
Partners' Capital (excluding net unrealized
 holding losses):
Balance at December 31, 1997                                 7,037           5,212,167          61,239,746          61,246,783
Net income                                                  11,884                -                562,223             574,107
Cash distributions paid or accrued (Note 3)
 Income                                                     (9,870)               -               (363,007)           (372,877)
 Return of capital                                            -                   -               (614,274)           (614,274)
                                                    ---------------     ---------------     ---------------     ---------------
                                                             9,051           5,212,167          60,824,688          60,833,739
                                                    ---------------     ---------------     ---------------     ---------------
Net unrealized holding losses:
Balance at March 31, 1998 and December 31, 1997               -                   -             (5,748,474)         (5,748,474)
                                                    ---------------     ---------------     ---------------     ---------------
Balance at March 31, 1998                           $        9,051           5,212,167      $   55,076,214      $   55,085,265
                                                    ===============     ===============     ===============     ===============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>







<PAGE>                               - 2 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
                                                                                                   For the             For the
                                                                                             Quarter Ended       Quarter Ended
                                                                                             Mar. 31, 1998       Mar. 31, 1997
                                                                                            ---------------     ---------------
<S>                                                                                         <C>                 <C>   
Cash flows from operating activities                                                                                           
 Net income                                                                                 $      574,107      $      897,055
  Adjustments to reconcile net income to net cash 
   provided by operating activities
    Depreciation                                                                                   614,274             332,889 
    Amortization                                                                                    32,170              39,440
    Increase in interest receivable                                                               (109,593)            (40,211)
    (Increase) decrease in other assets                                                            (77,625)            408,831
    Decrease in accounts payable                                                                  (232,087)           (459,996)
                                                                                            ---------------     ---------------
 Net cash provided by operating activities                                                         801,246           1,178,008 
                                                                                            ---------------     ---------------
Cash flows from investing activities
 Real estate capital improvements                                                                      (39)            (78,731) 
 Acquisition of real estate                                                                         (2,063)            (17,054)
                                                                                            ---------------     ---------------
 Net cash used in investing activities                                                              (2,102)            (95,785)
                                                                                            ---------------     ---------------
Cash flows from financing activities
 Distributions paid                                                                               (987,151)           (987,153)
 Bond issuance costs paid                                                                          (79,720)           (177,039)
 Net repayments on line of credit                                                                     -             (3,450,000)
 Proceeds from issuance of bonds payable                                                              -              3,450,000
 Principal payments on bonds payable                                                              (146,515)            (80,000)
                                                                                            ---------------     ---------------
 Net cash used in financing activities                                                          (1,213,386)         (1,244,192)
                                                                                            ---------------     ---------------
Net decrease in cash and temporary cash investments                                               (414,242)           (161,969)
Cash and temporary cash investments at beginning of period                                       7,879,934           2,021,860
                                                                                            ---------------     ---------------
Cash and temporary cash investments at end of period                                        $    7,465,692      $    1,859,891
                                                                                            ===============     ===============
Supplemental disclosure of cash flow information:
 Cash paid during the period for interest                                                   $      314,360      $      158,784
                                                                                            ===============     ===============

The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>




























<PAGE>                               - 3 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)

1. Organization

America First Apartment Investors, L.P. (the Partnership) was formed on March 
7, 1996, under the Delaware Revised Uniform Limited Partnership Act for the 
purpose of acquiring, holding, operating, selling or otherwise dealing with 
multifamily residential properties and other types of commercial real estate 
and interests therein.  The Partnership commenced operations on August 20, 
1996, when it merged with America First Tax Exempt Mortgage Fund 2 Limited 
Partnership (the Prior Partnership).  Under the terms of the merger agreement, 
the Partnership was the surviving partnership and effectively took over the 
operations of the Prior Partnership.  Unit holders of the Prior Partnership 
received one Beneficial Unit Certificate (BUC) of the Partnership for each BUC 
they held in the Prior Partnership as of the record date.  The Prior 
Partnership was terminated under the provisions of the Prior Partnership's 
Partnership Agreement.  The Partnership will terminate on December 31, 2016, 
unless terminated earlier under the provisions of its Partnership Agreement.  
The General Partner of the Partnership is America First Capital Associates 
Limited Partnership Four (AFCA 4).

2. Summary of Significant Accounting Policies

 A) Financial Statement Presentation
    The consolidated financial statements include the accounts of the 
    Partnership and its subsidiaries.  All significant intercompany 
    transactions and accounts have been eliminated in consolidation.

    The consolidated financial statements of the Partnership are prepared 
    without audit on the accrual basis of accounting in accordance with 
    generally accepted accounting principles.  The consolidated financial 
    statements should be read in conjunction with the consolidated and 
    combined financial statements and notes thereto included in the 
    Partnership's Annual Report on Form 10-K for the year ended December 31, 
    1997.  In the opinion of management, all normal and recurring adjustments 
    necessary to present fairly the financial position at March 31, 1998, 
    and results of operations for all periods presented have been made.

    The preparation of financial statements in conformity with generally 
    accepted accounting principles requires management to make estimates and 
    assumptions that affect the reported amounts of assets and liabilities and 
    disclosure of contingent assets and liabilities at the date of the 
    financial statements and the reported amounts of revenues and expenses 
    during the reporting period.  Actual results could differ from those 
    estimates.

 B) Investment in Tax-Exempt Mortgage Bonds
    Investment securities are classified as held-to-maturity, available-
    for-sale, or trading.  Investments classified as available-for-sale are 
    reported at fair value with any unrealized gains or losses excluded from 
    earnings and reflected as a separate component of partners' capital.  
    Subsequent increases and decreases in the net unrealized gain/loss on the 
    available-for-sale securities are reflected as adjustments to the carrying 
    value of the portfolio and adjustments to the component of partners' 
    capital.  The Partnership does not have investment securities classified 
    as held-to-maturity or trading.  

    The carrying value of tax-exempt mortgage bonds is periodically reviewed 
    and adjusted when there are significant changes in the fair value of the 
    underlying collateral (see Note 2D).

    Accrual of mortgage bond investment income is excluded from income when, 
    in the opinion of management, collection of related interest is doubtful. 
    This interest is recognized as income when it is received.

 C) Investment in Real Estate
    The Partnership's investment in real estate consists of property acquired 
    through foreclosure or deed in lieu of foreclosure and other real estate 
    acquired.  Each real estate property acquired is recorded at the lower of 
    cost or estimated net realizable value.  The carrying value of each 
    property is periodically reviewed and adjusted when there are significant 
    declines in the estimated net realizable value (see Note 2D). 

<PAGE>                               - 4 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)

    Depreciation of real estate is based on the estimated useful life of the 
    property (27-1/2 years on multifamily residential apartments and 31-1/2 
    years on The Exchange at Palm Bay) using the straight-line method.  
    Depreciation of real estate improvements on The Exchange at Palm Bay is 
    based on the term of the related tenant lease using the straight-line 
    method.

 D) Fair Value of Real Estate
    The fair value of the real estate (including real estate which 
    collateralizes the Partnership's remaining tax-exempt bond) is based on 
    management's best estimate of the net realizable value of the properties 
    which may differ from the ultimate values realized from these properties.  
    The net realizable value of the properties is determined based on the 
    discounted estimated future cash flows from the properties, including 
    estimated sales proceeds.  The calculation of discounted estimated future 
    cash flows includes certain variables such as the assumed inflation rates 
    for rents and expenses, capitalization rates and discount rates.  These 
    variables are supplied to the Partnership by an independent real estate 
    appraisal firm based upon local market conditions for each property.  In 
    certain cases, additional factors such as the replacement value of the 
    property or comparable sales of similar properties are also taken into 
    consideration.

 E) Income Taxes
    No provision has been made for income taxes since Beneficial Unit 
    Certificate (BUC) Holders are required to report their share of the     
    Partnership's taxable income for federal and state income tax purposes.

 F) Temporary Cash Investments
    Temporary cash investments are invested in short-term debt securities 
    purchased with an original maturity of three months or less.

 G) Net Income per BUC
    Net income per BUC has been calculated based on the weighted average 
    number of BUCs outstanding during each year presented.

 H) Comprehensive Income
    In the first quarter of 1998, the Partnership adopted Statement of 
    Financial Accounting Standards No. 130, "Reporting Comprehensive Income" 
    (SFAS 130).  SFAS 130 requires the display and reporting of comprehensive 
    income, which includes all changes in Partners' Capital with the exception 
    of additional investments by partners or distributions to partners.  
    Comprehensive income for the Partnership includes net income and the 
    change in net unrealized holding losses on investments charged or credited 
    to Partners' Capital.  Comprehensive income for the quarters ended March 
    31, 1998 and 1997 equaled net income as there were no changes in the net 
    unrealized holding losses for the respective periods.

3. Partnership Income, Expenses and Cash Distributions

The Partnership Agreement contains provisions for the distribution of Net 
Operating Income, Net Sale Proceeds and Liquidation Proceeds and for the 
allocation of income and expenses for tax purposes among AFCA 4 and BUC 
Holders.

Cash distributions included in the financial statements represent the actual 
cash distributions made during each period and the cash distributions accrued 
at the end of each period.

4. Partnership Reserve Account

The Partnership maintains a reserve account which totaled $6,712,831 at March 
31, 1998. The reserve account was established to maintain working capital for 
the Partnership and is available to supplement distributions to investors or 
for any other contingencies related to the ownership of the remaining mortgage 
bond, real estate acquired and the operation of the Partnership, including the 
acquisition of additional properties.  




<PAGE>                               - 5 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)

5. Investment in Tax-Exempt Mortgage Bonds

A description of the tax-exempt mortgage bond owned by the Partnership at 
March 31, 1998 is as follows:

<TABLE>
<CAPTION>
                                                                                                   Base
                                                                       Number      Maturity    Interest           Carrying
  Property Name                             Location                 of Units   	      Date        Rate(1)          Amount
  ----------------------------------        --------------------     --------   -------------   --------   -----------------
  <S>                                       <C>                      <C>        <C>             <C>        <C>
 Nonperforming:(2)
   Avalon Ridge                             Renton, WA                  356          09/01/11       8.5%         18,755,000
   Unrealized holding losses                                                                                     (5,748,474)
                                                                                                           -----------------
  Balance at March 31, 1998 (at estimated fair value)                                                      $     13,006,526
                                                                                                           =================
</TABLE>
(1) In addition to the base interest rate shown, the bond bears additional 
    contingent interest as defined in the revenue note which, when combined 
    with the interest shown, is limited to a cumulative, noncompounded amount 
    not greater than 13% per annum.  The Partnership did not receive 
    any additional contingent interest in 1998.

(2) Nonperforming bonds are bonds which are not fully current as to interest 
    payments.  The amount of foregone interest on the nonperforming bond was 
    $120,980 for 1998.

6. Investment in Real Estate

The Partnership's investment in real estate is comprised of the following:
<TABLE>
<CAPTION>
                                                                                                 Building
                                                               Number                                 and             Carrying
  Property Name                        Location               of Units   	         Land      Improvements               Amount
  ---------------------------------    --------------------   --------     -------------   ---------------    -----------------
  <S>                                  <C>                    <C>          <C>             <C>                <C>
  Covey at Fox Valley(1)               Aurora, IL                216       $  1,320,000    $   10,028,338     $     11,348,338
  The Exchange at Palm Bay             Palm Bay, FL           72,002(2)       1,296,002         3,989,988            5,285,990
  The Park at Fifty Eight(1)   	       Chattanooga, TN           196            231,113         4,122,226            4,353,339
  Shelby Heights(1)                    Bristol, TN               100            175,000         2,952,847            3,127,847
  Coral Point(3)                       Mesa, AZ                  336          2,240,000         8,960,000           11,200,000 
  Park at Countryside(1)               Port Orange, FL           120            647,000         2,616,648            3,263,648
  The Retreat(4)                       Atlanta, GA               226          1,800,000         7,315,697            9,115,697
  Jackson Park Place(1)                Fresno, CA                296          1,400,000        10,714,478           12,114,478
  Park Trace Apartments(1)             Norcross, GA              260          2,246,000        11,792,016           14,038,016
                                                                                                              -----------------
                                                                                                                    73,847,353
  Less accumulated depreciation                                                                                    (10,192,054)
                                                                                                              -----------------
  Balance at March 31, 1998                                                                                   $     63,655,299
                                                                                                              =================
</TABLE>
(1) Property is encumbered as described in Note 7.
(2) Represents square feet.
(3) Property is encumbered as described in Note 8.
(4) Property serves as collateral for $12,200,000 of multifamily revenue 
    refunding bonds issued on Jefferson Place.  The Partnership is the general 
    partner of the partnership which owns Jefferson Place.










<PAGE>                               - 6 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)

7.  Bonds Payable

Bonds payable were originated by the Partnership through the issuance of 
tax-exempt refunding bonds.  Bonds payable at March 31, 1998, consists of 
the following:

<TABLE>
<CAPTION>

                        Effective Final     
                        Interest  Maturity                                      Annual            	         	Carrying
Collateral              Rate      Date      Payment Schedule                    Payments    		      				       Amount	
----------------------- --------- --------  ----------------------------------- ---------------------   -------------
<S>                     <C>       <C>       <C>                                 <C>                     <C>
The Park at Fifty Eight   6.65%   3/1/2021  semiannual payments of              range from $224,000     $  2,620,000
 					    																																		principal and/or interest           to $228,000
                                            are due each March 1 and September 1

Shelby Heights and	       6.10%   3/1/2022  semiannual payments of              range from $266,000        3,380,000      
 Park at Countryside                        principal and/or interest           to $276,000
                                            are due each March 1 and September 1																								

Covey at Fox Valley       5.30%  11/1/2007  semiannual payments of              $586,000 in 1998,         12,410,000
 and Park Trace Apartments                  interest are due each May 1         $658,000 thereafter
                                            and November 1

Jackson Park Place        5.80%  12/1/2027  monthly payment of                  $611,901                   8,478,485
                                            principal and interest                                    
                                            are due the 1st of each month
                                                                                                        -------------
Balance at March 31, 1998				 																																														 			                        $ 26,888,485
																																																																																																								=============
</TABLE>

8.  Line of Credit

The Partnership has a $15 million revolving loan credit agreement (the Line of 
Credit) with The First National Bank of Boston (the Bank).  The Line of Credit 
provides interim financing for the acquisition of multifamily residential 
properties.  It expires on December 19, 1998.  The Line of Credit bears 
interest, which is payable monthly, at 1/2% above the Bank's base rate (which 
base rate was 9% as of March 31, 1998).  In addition, the Partnership pays a 
facility fee of 1/4 of 1% on the unused portion of the line which is payable 
quarterly in arrears.  The Line of Credit is collateralized by Coral Point; 
however, the Partnership may substitute other real estate owned as collateral, 
subject to the approval of the Bank.  The maximum amount available for 
borrowings under the Line of Credit was $10,290,000 at March 31, 1998. The 
Partnership did not have any borrowings against the Line of Credit at March 
31, 1998.  The Line of Credit contains convenants which include, among others, 
restrictions on the amount of indebtedness the Partnership may incur and 
minimum debt service coverage requirements.

9. Transactions with Related Parties

Substantially all of the Partnership's general and administrative expenses are 
paid by AFCA 4 or an affiliate and reimbursed by the Partnership.  The amount 
of such expenses reimbursed to AFCA 4 during 1998 was $374,413.  AFCA 4 or an 
affiliate also paid $82,251 in costs capitalized by the Partnership during 
1998 which were reimbursed by the Partnership.  The capitalized costs were 
incurred in connection with the offering of multifamily housing revenue 
refunding bonds and the acquisition of real estate.  The reimbursed expenses 
are presented on a cash basis and do not reflect accruals made at quarter 
end.  

Pursuant to the Limited Partnership Agreement, AFCA 4 is entitled to an 
administrative fee from the Partnership based on the original amount of the 
mortgage bonds which were foreclosed on and the purchase price of any 
additional properties acquired by the Partnership.  The amount of such fees 
paid to AFCA 4 was $111,375 in 1998.  


<PAGE>                               - 7 -
AMERICA FIRST APARTMENT INVESTORS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)

AFCA 4 did not receive any administrative fees from property owners in 1998.  

Pursuant to the terms of the Limited Partnership Agreement, AFCA 4 is entitled 
to receive a property acquisition fee from the Partnership in connection with 
the identification, evaluation and acquisition of additional properties and 
the financing thereof.  No such fees were paid to AFCA 4 during 1998.

An affiliate of AFCA 4 was retained to provide property management services 
for Covey at Fox Valley, The Park at Fifty Eight, Shelby Heights, Coral Point, 
Jefferson Place, Avalon Ridge, Park at Countryside, The Retreat, Jackson Park 
Place and Park Trace Apartments.  The fees for services provided represent the 
lower of (i) costs incurred in providing management of the property, or (ii) 
customary fees for such services determined on a competitive basis and 
amounted to $178,405 in 1998.

10. Subsequent Events

On April 2, 1998, the Partnership received proceeds of $13,090,000 through the 
offering of multifamily housing revenue refunding bonds on Coral Point.  The 
bonds were rated "A" by Standard and Poor's Corporation, bear interest at an 
effective rate of 4.96% and have a 10-year maturity.  Proceeds from the 
offering will be utilized to acquire additional multifamily housing properties.

On May 1, 1998, the Partnership sold its tax-exempt mortgage bond which was 
collateralized by Avalon Ridge.  The tax-exempt mortgage bond was sold for 
$18,755,000 plus accrued interest.  The net unrealized holding loss of 
$5,748,474 on such bond will be eliminated thus Partners' Capital will 
increase by the same amount.  Proceeds from the sale will be utilized to 
acquire additional multifamily housing properties.










































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

Liquidity and Capital Resources

America First Tax Exempt Mortgage Fund 2 (the Prior Partnership) originally 
acquired nine tax-exempt mortgage bonds, the proceeds of which were used to 
provide construction and/or permanent financing for eight multifamily housing 
properties and one commercial property.  The Prior Partnership subsequently 
acquired five of the properties through foreclosure or deed in lieu of 
foreclosure and one tax-exempt mortgage bond was prepaid in full.  During 
1996, the Prior Partnership acquired an additional multifamily property which 
is adjacent to one of the foreclosed properties that was originally intended 
to be part of a consolidated property.

On August 20, 1996, the Prior Partnership merged with America First Apartment 
Investors, L.P. (the Partnership).  Under the terms of the merger agreement, 
the Partnership was the surviving partnership and effectively took over the 
operations of the Prior Partnership.  Unit holders of the Prior Partnership 
received one Beneficial Unit Certificate (BUC) of the New Partnership for each 
BUC they held in the Prior Partnership as of the record date.  The Prior 
Partnership was terminated under the provisions of the Prior Partnership's 
Partnership Agreement.

During 1996, the Partnership acquired The Park at Fifty-Eight Phase I and Park 
at Countryside and during 1997 the Partnership acquired The Retreat and Park 
Trace Apartments.  In addition, Jackson Park Place was conveyed to the 
Partnership during 1997 through a deed in lieu of foreclosure.  At March 31 
1998, the Partnership continued to hold one tax-exempt mortgage bond with a 
carrying value, at estimated fair value, of $13,006,526 and eight real estate 
properties with a total depreciated cost of $63,655,299.

The following table shows the various occupancy levels of the properties 
owned or financed by the Partnership at March 31, 1998:

<TABLE>
<CAPTION>
                                                                                                       Number      Percentage
                                                                                        Number       of Units        of Units
Property Name                          Location                                       of Units       Occupied        Occupied
-------------------------------        -----------------------                       ----------     ----------     -----------
<S>                                    <C>                                           <C>            <C>            <C>
Jackson Park Place                     Fresno, CA                                          296            266             90%
Avalon Ridge(1)                        Renton, WA                                          356            328             92%
Covey at Fox Valley                    Aurora, IL                                          216            211             98%
The Park at Fifty Eight                Chattanooga, TN                                     196            184             94%
Shelby Heights                         Bristol, TN                                         100             95             95%
Coral Point                            Mesa, AZ                                            336            320             95%
Park at Countryside                    Port Orange, FL                                     120            115             96%
The Retreat                            Atlanta, GA                                         226            217             96%
Park Trace Apartments                  Norcross, GA                                        260            231             89%
                                                                                     ----------     ----------     -----------
                                                                                         2,106          1,967             93%
                                                                                     ==========     ==========     ===========
The Exchange at Palm Bay               Palm Bay, FL                                     72,002(2)      60,900(2)          85%
                                                                                     ==========     ==========     ===========
</TABLE>
(1) Property securing tax-exempt mortgage bond held by the Partnership.
(2) Represents square feet.

Net rental income earned on the properties owned by the Partnership represents 
its principal source of income and distributable cash.  In addition, the 
partnership continues to earn interest income on its remaining tax-exempt 
mortgage bond and on temporary cash investments.  The principal amount of the 
tax-exempt mortgage bond does not amortize over its term.  The tax-exempt 
mortgage bond provides for the payment of base interest at a fixed rate.  In 
addition, the Partnership may earn contingent interest based on a 
participation in the net cash flow and net sale or refinancing proceeds from 
the real estate collateralizing the tax-exempt mortgage bond.  The Partnership 
did not receive any contingent interest on its mortgage bonds during 1998.  
The Partnership may draw on reserves to pay operating expenses or to 
supplement cash distributions to Beneficial Unit Certificate (BUC) Holders.  




<PAGE>                               - 9 -
The Partnership has a $15 million revolving loan credit agreement (the Line of 
Credit) with the First National Bank of Boston (the Bank) that is used by the 
Partnership to provide interim financing for the acquisition of multifamily 
residential properties.  The Line of Credit expires on December 19, 1998.  The 
Line of Credit bears interest at 1/2% above the Bank's base rate (which base 
rate was 9% as of March 31, 1998).  The maximum amount available for 
borrowings under the Line of Credit was $10,290,000 at March 31, 1998.  The 
Partnership did not have any borrowings against the Line of Credit at March 
31, 1998.  The Line of Credit contains covenants which include, among others, 
restrictions on the amount of indebtedness the Partnership may incur and 
minimum debt service coverage requirements.  The Partnership intends to repay 
any borrowings under the Line of Credit through the refunding of existing 
tax-exempt bonds that are associated with certain properties owned by the 
Partnership.

On April 2, 1998, the Partnership received proceeds of $13,090,000 through the 
offering of multifamily housing revenue refunding bonds on Coral Point.  The 
bonds were rated "A" by Standard and Poor's Corporation, bear interest at an 
effective rate of 4.96% and have a 10-year maturity.  Proceeds from the 
offering will be utilized to acquire additional multifamily housing properties.

On May 1, 1998, the Partnership sold its tax-exempt mortgage bond which was 
collateralized by Avalon Ridge.  The tax-exempt mortgage bond was sold for 
$18,755,000 plus accrued interest.  The net unrealized holding loss of 
$5,748,474 on such bond will be eliminated thus Partners' Capital will 
increase by the same amount.  Proceeds from the sale will be utilized to 
acquire additional multifamily housing properties.

During the quarter ended March 31, 1998, $106,123 of undistributed income was 
added to reserves.  The total amount held in reserves at March 31, 1998, 
was $6,712,831.  Future distributions to BUC Holders will depend upon the 
amount of net rental income  and interest income the Partnership receives, the 
size of reserves established by the Partnership and the extent to which 
withdrawals are made from reserves.  

The Partnership believes that cash provided by operating activities, its Line 
of Credit, proceeds from the issuance of tax-exempt mortgage bonds and, if 
necessary, withdrawals from the Partnership's reserves will be adequate to 
meet its short-term and long-term liquidity requirements, including the 
payments of distributions to BUC Holders.  Under the terms of the Partnership 
Agreement, the Partnership has the authority to enter into short-term and 
long-term debt financing arrangements.  The Partnership is not authorized to 
issue additional BUCs to meet short-term and long-term liquidity requirements.

Distributions

Cash distributions paid or accrued per BUC were as follows:
<TABLE>
<CAPTION>
                                                                                                For the               For the
                                                                                          Quarter Ended         Quarter Ended
                                                                                          Mar. 31, 1998         Mar. 31, 1997
                                                                                         ---------------       ---------------
<S>                                                                                      <C>                   <C>
Regular monthly distributions
	Income                                                                                  $        .0697        $        .1236 
	Return of capital                                                                                .1178                 .0639 
                                                                                         ---------------       ---------------
                                                                                         $        .1875        $        .1875 
                                                                                         ===============       ===============
Distributions
	Paid out of current and prior undistributed cash flow                                   $        .1875        $        .1875 
                                                                                         ===============       ===============
</TABLE>












<PAGE>                               - 10 -
Asset Quality 

It is the policy of the Partnership to make a periodic review of its real 
estate, including the property collateralizing the Partnership's remaining 
mortgage bond and adjust, when necessary, the carrying value of such real 
estate or the mortgage bond.  Each real estate property held by the 
Partnership is recorded at the lower of cost or net realizable value.  The 
Partnership's mortgage bond is classified as available-for-sale and is, 
therefore, carried at the estimated fair value of the underlying real 
property.  The carrying value of each real estate property owned by the 
Partnership is adjusted when there are significant declines in the estimated 
net realizable value.  The carrying value of the mortgage bond is adjusted 
when there are significant changes in the estimated net realizable value of 
the underlying collateral for the bond.  

Internal property valuations and reviews performed during the quarter ended 
March 31, 1998, indicated that the mortgage bonds and real estate recorded on 
the balance sheet at March 31, 1998, required no adjustments to their current 
carrying amounts.

Results of Operations

The table below compares the results of operations for each period shown.

<TABLE>
<CAPTION>
                                                                              For the             For the            Increase
                                                                        Quarter Ended       Quarter Ended           (Decrease)
                                                                        Mar. 31, 1998       Mar. 31, 1997           From 1997
                                                                       ---------------     ---------------     ---------------
<S>                                                                    <C>                 <C>                 <C>
Rental income                                                               3,089,924           1,692,818           1,397,106 
Mortgage bond investment income                                        $      277,564      $      632,504      $     (354,940)
Interest income on temporary cash investments                                  74,350               5,988              68,362
                                                                       ---------------     ---------------     ---------------
                                                                            3,441,838           2,331,310           1,110,528
                                                                       ---------------     ---------------     ---------------
Real estate operating expenses                                              1,485,232             666,024             819,208
Depreciation                                                                  614,274             332,889             281,385 
Interest expense                                                              430,752             165,257             265,495
General and administrative expenses                                           337,473             270,085              67,388
                                                                       ---------------     ---------------     ---------------
                                                                            2,867,731           1,434,255           1,433,476 
                                                                       ---------------     ---------------     ---------------
Net income                                                             $      574,107      $      897,055      $     (322,948) 
                                                                       ===============     ===============     ===============
</TABLE>

Rental income increased $1,397,106 for the quarter ended March 31, 1998, 
compared to the same period in 1997.  This increase was primarily attributable 
to:  (i) a $442,000 increase resulting from the acquisition of Jackson Park 
Place in the settlement of the mortgage bond secured by this property in May 
1997; (ii) a $406,000 increase resulting from the acquisition of The Retreat 
in April 1997; (iii)  a $440,000 increase resulting from the acquisition of 
Park Trace Apartments in October 1997; (iv) a $52,000 increase resulting from 
a 28% increase in leased space at The Exchange at Palm Bay; and (v) a $57,000 
increase in rental income at the Partnership's other properties.

Mortgage bond investment income decreased $354,940 for the quarter ended March 
31, 1998, compared to the same period in 1997.  The decrease is primarily 
attributable to:  (i) a $260,000 decrease resulting from the disposition of 
the Jefferson Place mortgage bond in July 1997; and (ii) a $187,000 decrease 
resulting from the acquisition of Jackson Park Place in settlement of the 
mortgage bond for real estate in May 1997.  These decreases in mortgage bond 
investment income were partially offset by a $92,000 increase in cash flow 
received from the tax-exempt bond secured by Avalon Ridge which pays interest 
on a modified cash basis.  The increase in net cash flow received from Avalon 
Ridge is due primarily to an increase in average occupancy.








<PAGE>                               - 11 -
Excluding property tax refunds of approximately $180,000 received during the 
quarter ended March 31, 1997, real estate operating expenses increased 
$639,208 for the quarter ended March 31, 1998, compared to the same period in 
1997.  This increase is attributable to:  (i) a $237,000 increase resulting 
from the acquisition of Park Trace Apartments in October 1997; (ii) a $208,000 
increase resulting from the acquisition of Jackson Park Place in May 1997; and 
(iii) a $194,000 increase resulting from the acquisition of The Retreat in 
April 1997.

Depreciation expense increased $281,385 for the quarter ended March 31, 1998, 
compared to the same period in 1997.  This increase is primarily attributable 
to:  (i) a $107,000 increase resulting from the acquisition of Park Trace 
Apartments in October 1997; (ii) a $97,000 increase resulting from the 
acquisition of Jackson Park Place in May 1997; (iii) a $67,000 increase 
resulting from the acquisition of The Retreat in April 1997; and (iv) a 
$10,000 increase in depreciation expense on the Partnership's other 
properties.

Interest expense increased $265,495 for the quarter ended March 31, 1998, 
compared to the same period in 1997.  This increase is attributable to a 
$301,000 increase on bonds payable of $20,915,000 which were issued in 
December 1997 and a $62,000 increase on bonds payable of $3,450,000 which were 
issued in March 1997.  These increases were partially offset by a decrease of 
$98,000 due to the reduction of the average amount borrowed by the Partnership 
on its Line of Credit used to acquire new properties.

Interest income on temporary cash investments increased $68,362 for the 
quarter ended March 31, 1998, compared to the same period in 1997 due 
primarily to an increase in the average reserve balance attributable to 
additions made to the Partnership reserves during 1997.

General and administrative expenses increased $67,388 for the quarter ended 
March 31, 1998, compared to the same period in 1997.  This increases is 
primarily due to:  (i) an increase of approximately $55,000 in administrative 
fees on the newly acquired properties; and (ii) net increases of approximately 
$12,000 in other general and administrative expenses.

This report contains forward looking statements that reflect management's 
current beliefs and estimates of future economic circumstances, industry 
conditions, the Partnership's performance and financial results.  All 
statements, trend analysis and other information concerning possible or 
assumed future results of operations of the Partnership and the real estate 
investments it has made (including, but not limited to, the information 
contained in "Management's Discussion and Analysis of Financial Condition and 
Results of Operations"), constitute forward-looking statements.  BUC holders 
and others should understand that these forward looking statements are subject 
to numerous risks and uncertainties and a number of factors could affect the 
future results of the Partnership and could cause those results to differ 
materially from those expressed in the forward looking statements contained 
herein.

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk.  
The requirements of Item 3 of Form 10-Q are not applicable to the Partnership 
prior to its Annual Report on Form 10-K for the year ending December 31, 1998.






















<PAGE>                               - 12 -
PART II.  OTHER INFORMATION

     Item 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits

		             3.  	Articles of Incorporation and Bylaws of America First 
                    Fiduciary Corporation Number Eight (incorporated by 
                    reference to Form S-11 Registration Statement filed May 8, 
                    1986, with the Securities and Exchange Commission by 
                    America First Tax Exempt Mortgage Fund 2 Limited 
                    Partnership (Commission File No. 33-5521)).

               4(a) Form of Certificate of Beneficial Unit Certificate 
                    incorporated by reference to Exhibit 4.1 to Registration 
                    Statement on Form S-4 (Commission File No. 333-2920) filed 
                    by the Registrant on March 29, 1996).

               4(b) Agreement of Limited Partnership of the Registrant 
                    (incorporated by reference to Exhibit 4(b) to Form 8-K 
                    (Commission File No. 0-20737) filed by the Registrant on 
                    August 23, 1996).

               4(c) Agreement of Merger, dated March 28, 1996, between the 
                    Registrant and America First Tax Exempt Mortgage Fund 2 
                    Limited Partnership (incorporated by reference to Exhibit 
                    4.3 to Amendment No. 1 to Registration Statement on Form 
                    S-4 (Commission File No. 333-2920) filed by the Registrant 
                    on May 17, 1996).
               
              10(a) $18,755,000 Washington State Housing Finance Commission 
                    Multifamily Housing Mortgage Revenue Note (Sunpointe 
                    Apartments Projects) Series 1987 (incorporated herein by 
                    reference to Form 10-K dated December 31, 1987 filed 
                    pursuant to Section 13 or 15(d) of the Securities Exchange 
                    Act of 1934 by America First Tax Exempt Mortgage Fund 2 
                    Limited Partnership (Commission File No. 0-15329)).

              10(b) Lender Loan Agreement and Indenture of Trust among 
                    Washington State Housing Finance Commission, the 
                    Registrant and FirsTier Bank, National Association, dated 
                    September 1, 1987 (incorporated herein by reference to Form 
                    10-K dated December 31, 1987 filed pursuant to Section 13 
                    or 15(d) of the Securities Exchange Act of 1934 by America 
                    First Tax Exempt Mortgage Fund 2 Limited Partnership 
                    (Commission File No. 0-15329)).

              10(c) Construction Loan Agreement between the Registrant and 
                    Sunpointe Associates Limited Partnership, dated September 
                    1, 1987 (incorporated herein by reference to Form 10-K 
                    dated December 31, 1987 filed pursuant to Section 13 or 
                    15(d) of the Securities Exchange Act of 1934 by America 
                    First Tax Exempt Mortgage Fund 2 Limited Partnership 
                    (Commission File No. 0-15329)).

              10(d) Settlement Agreement among the Registrant and Jackson Park 
                    Place, Artel Farms, Inc., and David A. Dyck dated April 
                    11, 1997 (incorporated herein by reference to Form 10-Q 
                    dated June 30, 1997 filed pursuant to Section 13 or 15(d) 
                    of the Securities Exchange Act of 1934 by America First 
                    Apartment Investors, L.P. (Commission File No. 0-20737)).

              10(e) $12,410,000 Promissory Note, dated December 11, 1997, 
                    from Park Trace Apartments Limited Partnership to the City 
                    of Aurora, Illinois (The Covey at Fox Valley Apartment 
                    Project) Series 1997 (incorporated herein by reference to 
                    Form 10-K dated December 31, 1997 filed pursuant to 
                    Section 13 or 15(d) of the Securities Exchange Act of 1934 
                    by America First Apartment Investors, L.P.  (Commission 
                    File No. 0-20737)).






<PAGE>                              - 13 -
              10(f) Loan Agreement, dated December 1, 1997, between Park 
                    Trace Apartments Limited Partnership and City of Aurora, 
                    Illinois (The Covey at fox Valley Apartment Project) 
                    Series 1997 (incorporated herein by reference to Form 10-K 
                    dated December 31, 1997 filed pursuant to Section 13 or 
                    15(d) of the Securities Exchange Act of 1934 by America 
                    First Apartment Investors, L.P.  (Commission File No. 
                    0-20737)).

              10(g) Indenture of Trust, dated December 1, 1997, between City 
                    of Aurora, Illinois and UMB Bank, National Association 
                    (The Covey at Fox Valley Apartment Project) Series 1997 
                    (incorporated herein by reference to Form 10-K dated 
                    December 31, 1997 filed pursuant to Section 13 or 15(d) 
                    of the Securities Exchange Act of 1934 by America First 
                    Apartment Investors, L.P.  (Commission File No. 
                    0-20737)).

              10(h) Revolving Credit Loan Agreement, dated December 19, 
                    1996, between America First Apartment Investors, L.P. 
                    and The First National Bank of Boston (incorporated 
                    herein by reference to Form 10-K dated December 31, 1997 
                    filed pursuant to Section 13 or 15(d) of the Securities 
                    Exchange Act of 1934 by America First Apartment 
                    Investors, L.P.  (Commission File No. 0-20737)).

          (b)  Form 8-K

               The registrant did not file a report on Form 8-K during 
               the quarter for which this report is filed.














































<PAGE>                              - 14 -
	                                  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.

Dated:  May 13, 1998          AMERICA FIRST APARTMENT INVESTORS, L.P.

                              By America First Capital
                                   Associates Limited
                                   Partnership Four, General
                                   Partner of the Registrant

                              By America First Companies L.L.C.,
                                   General Partner of America First Capital
                                   Associates Limited Partnership Four

                              By /s/ Michael Thesing             
                                   Michael Thesing
                                   Vice President and Principal 
                                   Financial Officer























































<PAGE>                               - 15 -