FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
                       QUARTERLY OR TRANSITIONAL REPORT

                 (As last amended by 34-32231, eff. 6/3/93.)

                   U.S. Securities and Exchange Commission
                           Washington, D.C.  20549


                                 FORM 10-QSB

[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.........to.........

                        Commission file number 0-11970


                PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I
      (Exact name of small business issuer as specified in its charter)



       Delaware                                              36-3240083
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                              Identification No.)

     8700 West Bryn Mawr
     Chicago, Illinois                                          60631
(Address of principal executive offices)                      (Zip Code)


                   Issuer's telephone number (312) 399-8700



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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



                        PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

a)              PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I


                    STATEMENT OF NET ASSETS IN LIQUIDATION
                                (in thousands)
                                 (Unaudited)
                              September 30, 1996




Assets
  Cash                                          $    93
  Receivable from escrow                             75
                                                    168

Liabilities
  Advances due to affiliates of the Managing
     General Partner                                156
  Estimated costs during the period
     of liquidation                                  12
  Net assets in liquidation                     $     0

               See Accompanying Notes to Financial Statements


b)             PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I

              STATEMENT OF CHANGES IN NET ASSETS IN LIQUIDATION
                               (in thousands)
                                (Unaudited)
                             September 30, 1996

Net assets in liquidation                                      $    0
at December 31, 1995
Changes in net assets in liquidation
attributable to:
  Decrease in unrestricted cash                                   (55)
  Increase in receivable from escrow                               75
  Decrease in restricted-tenant security deposits                 (87)
  Decrease in accounts receivable                                  (6)
  Decrease in tax escrows                                         (95)
  Decrease in restricted escrows                                 (168)
  Decrease in investment properties                            (8,660)
  Decrease in accounts payable                                     25
  Decrease in advances due to affiliates of the Managing
    General Partner                                             1,624
  Decrease in other liabilities                                   437
  Decrease in mortgage notes payable                            6,590
  Decrease in estimated costs during the
    period of liquidation                                         320

Net assets in liquidation at
  September 30, 1996                                           $    0


               See Accompanying Notes to Financial Statements


c)             PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I

                          STATEMENTS OF OPERATION
                      (in thousands, except unit data)
                                (Unaudited)
                           (Going Concern Basis)


                                      Three Months Ended   Nine Months Ended
                                      September 30, 1995  September 30, 1995

Revenues:
Rental income                              $   469             $ 1,392
Other income                                    26                  78
     Total revenues                            495               1,470

Expenses:
  Operating                                    160                 509
  General and administrative                    76                 198
  Maintenance                                  121                 244
  Depreciation                                 131                 375
  Interest                                     435               1,299
  Property taxes                                50                 155
     Total expenses                            973               2,780

Net loss before extraordinary item         $  (478)            $(1,310)
   Extraordinary item-gain on sale
     of land                                    66                  66
   Net Loss                                $  (412)            $(1,244)
Net loss allocated to general 
    partners (2%)                          $    (6)            $   (23)
Net loss allocated to limited 
     partners (98%)                           (406)             (1,221)
                                           $  (412)            $(1,244)

Net loss per limited
partnership unit:
Net loss before extraordinary item         $(18.73)            $(51.34)
Extraordinary gain from sale of land          2.51                2.51
Net loss                                   $(16.22)            $(48.83)

               See Accompanying Notes to Financial Statements


d)                PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I

                              STATEMENT OF CASH FLOWS
                                  (in thousands)
                                   (Unaudited)
                              (Going Concern Basis)

                                                        Nine Months Ended
                                                        September 30, 1995

Cash flows from operating activities:
  Net loss                                                    $(1,244)
  Adjustments to reconcile net loss to
    net cash used in operating activities:
    Depreciation                                                  375
    Amortization                                                   35
    Gain on sale of land                                          (66)
    Change in accounts:
      Restricted cash                                              14
      Accounts receivable                                           5
      Tax escrow                                                  (62)
      Other assets                                                  6
      Accounts payable and other accrued expenses                 668
      Accrued interest                                            262
      Tenant security deposit liabilities                          (3)

Net cash used in operating activities                             (10)

Cash flows from investing activities:
  Property improvements and replacements                         (202)
  Deposits to restricted escrows                                   (6)
  Receipts from restricted escrows                                133
  Proceeds from sale of land                                      150

         Net cash provided by investing activities                 75

Cash flows from financing activities:
  Principal payments on mortgage notes payable                    (29)

         Net cash used in financing activities                    (29)

Net increase in cash                                               36

Cash at beginning of period                                       259

Cash at end of period                                          $  295

Supplemental disclosure of cash flow information:
  Cash paid for interest                                       $  488


                  See Accompanying Notes to Financial Statements


e)                PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I

                          Notes to Financial Statements
                                   (Unaudited)

                                September 30, 1996

NOTE A - BASIS OF PRESENTATION

Effective December 31, 1995, the Registrant determined it was in the partners'
best interest to liquidate the Partnership upon the imminent disposal of the
investment properties and settlement of remaining liabilities expected to occur
in 1996.  Of the Partnership's two remaining properties at December 31, 1995,
Woodlawn House was sold February 1, 1996, and Meadows at Kendale Lakes was sold
April 15, 1996.

The decision to liquidate the Partnership resulted in the change in the basis of
accounting for its financial statements at December 31, 1995, from the going
concern basis of accounting to the liquidation basis of accounting.
Consequently, assets have been valued at estimated net realizable value and
liabilities are presented at their estimated settlement amounts, including
estimated costs associated with carrying out the liquidation.  The valuation of
certain assets and liabilities necessarily requires estimates and assumptions.
The actual realization of assets and settlement of liabilities could be higher
or lower than amounts indicated and is based upon the Managing General Partner's
estimates as of the date of the most current financial statements.

The statement of net assets in liquidation as of September 30, 1996, includes
approximately $12,000 of accrued costs that the Partnership estimates will be
incurred during the period of liquidation, based on the assumption that the
liquidation process will be completed during the fourth quarter of 1996.  These
costs include administrative expenses and termination costs related to
terminating the Partnership.  Because the ultimate realization of assets and the
settlement of liabilities is based on estimates, the liquidation period may be
extended beyond the projected period.

The accompanying unaudited financial statements at September 30, 1996, have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B.  Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements.  In the opinion of the Managing General Partner, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation on the liquidation basis have been included.  For further
information, refer to the financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-KSB for the fiscal year ended
December 31, 1995.

NOTE B - LEGAL PROCEEDINGS

Certain affiliates of the Managing General Partner and certain officers and
directors of such affiliates are parties to certain pending legal proceedings.
The adverse outcome of any one or more legal proceedings against an affiliate of
the Managing General Partner which provides financial support or services to the
Partnership could have a materially adverse effect on the present and future
operations of the Partnership.  However, the inclusion of this discussion is not
intended as a representation by the Partnership that any particular proceeding
is material.  The ultimate outcome of the litigation cannot presently be
determined.  Accordingly, no provision for any liability that may result has
been made in the unaudited financial statements.

NOTE C - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

The Partnership has no employees and is dependent on the Managing General
Partner or its affiliates for the management and administration of all
partnership activities.  The Managing General Partner or its affiliates may be
reimbursed for direct expenses relating to the Partnership's administration and
other costs paid on behalf of the Partnership.  The Managing General Partner
received $11,000 and $3,000 for the periods ended September 30, 1996 and 1995,
respectively, as reimbursement for such out-of-pocket expenses.

The Partnership had advances of approximately $9,858,000 payable to affiliates
of the Managing General Partner at September 30, 1996.  During 1994, the
Managing General Partner and its affiliates assigned a portion of the advances
to an affiliate of Insignia Financial Group, Inc. ("Insignia").  The liability
for advances has been adjusted to its estimated settlement amount of $156,000 in
the accompanying financial statements.

The Partnership has engaged affiliates of Insignia to provide day-to-day
management of the Partnership's properties under an agreement which provides for
fees equal to 5% of revenues on each property.  An affiliate of Insignia also
provided partnership administration and management services for the Partnership
during the nine month period ended September 30, 1996 and 1995. Reimbursements
for direct expenses relating to these services totaled approximately $38,000 and
$67,000 for the periods ended September 30, 1996 and 1995, respectively.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

At December 31, 1995, the Partnership adopted the liquidation basis of
accounting.  Of the Partnership's remaining properties at December 31, 1996,
Woodlawn House was sold February 1, 1996, and Meadows at Kendale Lakes was sold
April 15, 1996.  Accordingly, the Partnership will be liquidated upon settlement
of the remaining liabilities during 1996.

The imminent disposition of the Partnership's properties resulted in the change
in the basis of accounting for its financial statements at December 31, 1995,
from the going concern basis of accounting to the liquidation basis of
accounting.  Consequently, assets have been valued at estimated net realizable
value and liabilities are presented at their estimated settlement amounts,
including estimated costs associated with carrying out the liquidation.  The
valuation of certain assets and liabilities necessarily requires estimates and
assumptions.  The actual realization of assets and settlement of liabilities
could be higher or lower than amounts indicated and is based upon estimates as
of the date of the most current financial statements.

Liquidity and Capital Resources

The statement of net assets in liquidation as of September 30, 1996, includes
approximately $1,000 of accrued costs that the Partnership estimates will be
incurred during the period of liquidation based on the assumption that the
liquidation process will be completed during the fourth quarter of 1996.  These
costs include administrative expenses and termination costs related to
terminating the partnership.  Because the ultimate realization of assets and
settlement of liabilities is based on estimates, the liquidation period may be
extended beyond the projected period.  The Managing General Partner expects that
no assets will be available for distribution to the partners upon settlement of
the Partnership's remaining liabilities.


DEVELOPMENTS - VMS REALTY PARTNERS AND AFFILIATES

There have been no material developments or changes from the Recent Developments
- VMS Realty Partners and Affiliates disclosed in "Part I, Item 1" of the
Partnership's report on Form 10-KSB for the year ended December 31, 1995.


                           PART II - OTHER INFORMATION


ITEM 1.    LEGAL PROCEEDINGS

There have been no new material developments or changes from "Part I, Item 3" of
the Partnership's report on the Form 10-KSB for the year ended December 31,
1995.


ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

  The Partnership did not submit any matter to a vote of its holders of Limited
Partnership Interests during the third quarter of 1996.


ITEM 6.    EXHIBITS AND REPORTS ON FORM 8-K

     a)    Exhibits:

           Exhibit 27, Financial Data Schedule, is filed as an exhibit to this 
           report.

     b)    Reports on Form 8-K:

           None filed during the quarter ended September 30, 1996.



                                    SIGNATURES

  In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                         PRUDENTIAL-BACHE/VMS REALTY ASSOCIATES L.P. I
                                       (Registrant)


                         By: VMS Realty Associates
                             Managing General Partner

                         By: JAS Realty Corporation



Date:                    By: /s/Joel A. Stone          
                             Joel A. Stone
                             President




Date: November 12, 1996  By: /s/Thomas A. Gatti
                             Thomas A. Gatti
                             Senior Vice President and
                             Principal Accounting Officer