U.S. SECURITIES AND EXCHANGE COMMISSION

                         Washington, DC  20549

                              FORM 10-QSB

(Mark One)

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

     For the quarterly period ended       MARCH 31, 1999
                                    ------------------------

   [ ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     For the transition period from _____________ to ______________

                Commission file number      0 - 7 0 9 3
                                        ------------------

                         MOD-U-KRAF HOMES, INC.
   -----------------------------------------------------------------
                (Exact name of small business issuer as
                       specified in its charter)

             VIRGINIA                              54-0893908
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    (State or other jurisdiction                  (IRS Employer
  of incorporation or organization)            Identification No.)

             P. O. BOX 573, ROCKY MOUNT, VIRGINIA    24151
   ------------------------------------------------------------------
                (Address of principal executive offices)

                             (540) 483-0291
   ------------------------------------------------------------------
                      (Issuer's telephone number)


   ------------------------------------------------------------------
          (Former name, former address and former fiscal year,
                     if changed since last report)

     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 _____


                  APPLICABLE ONLY TO CORPORATE ISSUERS

     State the  number of  shares  outstanding of  each of the  issuer's
classes of common equity, as of the latest practicable date:   825,649
                                                             ----------

<PAGE>
                                   1

                         MOD-U-KRAF HOMES, INC.

                                 INDEX


                     PART I - FINANCIAL INFORMATION

    Balance Sheets                                        2 

    Statements of Income                                  3

    Statements of Cash Flows                              4

    Management's Discussion and Analysis                  5

    Notes to Financial Information                        6

                      PART II - OTHER INFORMATION

    Item 4.  Submission of Matters to a Vote of
                  Security Holders                        7

<PAGE>
                                   2                   
                    
                         MOD-U-KRAF HOMES, INC.        
                      Consolidated Balance Sheets      
                        March 31, 1999 and 1998        
                    
          ASSETS                                  1999       1998
                                              ----------  ----------
CURRENT ASSETS                
  Cash and cash equivalents                   $1,641,056  $  293,774
  Receivables                                    366,744     420,312
  Cost and estimated earnings in excess
    of billings on uncompleted contracts          94,878     438,488
  Inventories (Note 2)                         2,602,592   2,280,149
  Notes receivable, current portion (Note 3)     444,068     614,172
  Prepaid expenses                                33,106      42,492
  Income taxes receivable                         76,980      37,469
                                              ----------  ----------
    Total current assets                       5,259,424   4,126,856
                    
LONG-TERM NOTES RECEIVABLE (Note 3)              157,052     175,118
               
PROPERTY AND EQUIPMENT, at cost less              
  accumulated depreciation                   
  1999 $3,025,216; 1998 $2,625,677. (Note 4)   3,508,109   3,867,511
                    
OTHER ASSETS                  
  Deferred income taxes                          416,381     460,788
  Cash surrender value of life insurance         160,504     139,966
  Reimbursement Account (Note 6)                 206,700     199,786
  Earnings on unused Bond proceeds                   732     115,730
  Bond Issue Costs (Note 6)                       64,400      68,360
  Model homes                                    471,881     280,352 
                                              ----------  ----------
                                             $10,245,182  $9,434,467
                                              ==========  ==========
         LIABILITIES AND STOCKHOLDERS' EQUITY                    
                    
CURRENT LIABILITIES                
  Current portion of post-retirement (Note 5)     79,788      73,714
  Current maturities of long-term debt(Note 6)   150,000     150,000
  Line of credit                                     -       400,000
  Accounts payable and other liabilities         941,231     258,922
  Accrued compensation                           315,501     243,661
  Customer deposits                              158,522     163,953
  Income Taxes Payable                           218,391         -  
                                              ----------  ----------
          Total current liabilities            1,863,433   1,290,250
                    
LONG-TERM POST RETIREMENT BENEFITS (Note 5)      904,389     984,177
LONG-TERM DEBT (Note 6)                        2,400,000   2,489,755
                                              ----------  ----------
          Total liabilities                    5,167,822   4,764,182
                                              ----------  ----------
STOCKHOLDERS' EQUITY                    
  Common stock, $1 par value, 2,000,000                     
    shares authorized: shares issued and                    
    outstanding 1999 825,649, 1998 825,649       825,649     825,649
  Additional Paid in Capital                     459,671     459,671
  Retained earnings                            3,792,040   3,384,965
                                              ----------  ----------
                                               5,077,360   4,670,285
                                              ----------  ----------
                                             $10,245,182  $9,434,467
                                              ==========  ==========
Accompanying notes are an important part of these financial statements.

<PAGE>
                                   3                   
                    
                        MOD-U-KRAF HOMES, INC.              
                   Consolidated Statement of Income         
            Quarters Ended March 31, 1999 and March 31, 1998     
                    
                    
                                                 1999        1998
                                              ----------  ----------
Net Sales                                     $4,790,258  $2,341,651
  Cost of Sales                                3,475,871   1,824,607
                                              ----------  ----------
                                               1,314,387     517,044
Selling, General and Administrative Expenses     728,330     577,515 
                                              ----------  ----------
  Income/<Loss> from Operations                  586,058     (60,471)

Deferred Compensation Expense                     18,298      19,909
Post Retirement Benefits Expense                   2,619       2,817
                    
Non-operating Income/<Expenses>                   (2,520)      4,257
                                              ----------  ----------

  Income/<Loss> Before Income Taxes              562,619     (78,940)

Federal and State Income Taxes                   219,422     (31,411)
                                              ----------  ----------

    Net Income / <Loss>                          343,198     (47,529)
                                              ==========  ==========

Earnings per share:                
            Net Income / <Loss>                     0.42       (0.06)
                                              ==========  ==========

Depreciation Included in Above Cost              117,021     125,260
                                              ==========  ==========

Accompanying notes are an important part of these financial statements.

<PAGE>
                                    4                  
                    
                         MOD-U-KRAF HOMES, INC.        
                  Consolidated Statement of Cash Flows      
                 Quarters Ended March 31, 1999 and 1998          
                    
                                                 1999        1998
OPERATING ACTIVITIES                          ----------  ----------
  Net Income/<Loss>                           $  343,198  $  (47,529)
  Noncash <income> expenses included                   
      in income or <loss>:                   
    Depreciation and amortization                117,021     125,260
    Deferred income taxes                            -         3,486
    Loss (gain) on sale of equipment              (5,000)        -
    Increase in cash value of life insurance      (2,772)     (2,088)
    Adjustments to post retirement benefits      (19,225)    (17,416)
  <Increase> decrease in:                    
    Trade receivables                            (90,976)   (274,868)
    Cost and estimated earnings in excess 
      of billings on uncompleted contracts       (18,674)   (392,480)
    Inventories                                 (984,576)    (27,086)
    Prepaid Expenses                               1,551       2,394
    Model placement costs                          5,376     (44,335)  
    Income taxes receivable                          (80)    (37,469)
  <Decrease> increase in:                    
    Accounts payable and other Liabilities       395,853    (107,388)
    Accrued compensation                          95,094      82,149
    Customer deposits                              1,322      80,266
    Income taxes payable                         218,391      (5,847)
                                              ----------  ----------
  Net cash provided by (used in)                  
      operations                                  56,503    (662,952)
                                              ----------  ----------
INVESTING ACTIVITIES                     
  Proceeds from sale of equipment                  5,000         -
  Purchase of property & equipment net of                   
     debt incurred 1999 $0 ;1998 $0.             (50,642)    (16,465)
  <Increase> decrease in notes receivable                   
     arising from sales                           52,505      48,640
                                              ----------  ----------
  Net cash provided by (used in)                  
     investing activities                          6,863      32,175
                                              ----------  ----------
FINANCING ACTIVITIES                     
  Short-term borrowings                              -       400,000
  Cash dividends paid                            (24,769)    (24,769)
  Debt issue costs, net of debt incurred                    
    1999 $0 : 1998 $0.                               990         990
  Funding of reimbursement account               (52,265)    (39,544)
  Earnings on unused bond proceeds                    (8)     (2,118)
                                              ----------  ----------
  Net cash provided by (used in)                  
     financing activities                        (76,052)    334,559
                                              ----------  ----------
    Net increase (decrease) in cash              (12,686)   (296,218)
CASH                 
  Beginning                                    1,653,742     589,992
                                              ----------  ----------
  Ending                                      $1,641,056  $  293,774
                                              ==========  ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION      
  Cash payments for:                    
    Interest                                  $   19,027  $   26,253 
    Income taxes                              $      -    $      -

Accompanying notes are an important part of these financial statements.

<PAGE>
                                   5                   
                    
                        MOD-U-KRAF HOMES, INC                    
                    
                  Management's Discussion and Analysis           
                    of the First Quarter Statements              
                    
                    
    Net sales for the first quarter of 1999 were $4,790,258 as compared
to $2,341,350 for the first quarter of 1998, a 104.57% increase.  The
Company ended the quarter with 25.5 units in inventory; a retail value of
$1,159,027. These results are attributable to the excellent weather
conditions and a strong demand for housing the first quarter of the year.
Management believes that the market for its modular housing is likely
to remain strong for the foreseeable future.  Because of, the continued
strength of the economy and the low interest rates available to home buyers.
The Company intends to capitalize on this anticipated demand by improving
its production capacities and efficiency, resulting in improved revenues
and gross profit margins.  The Company's success in realizing these goals
will be affected by weather conditions in its market and its ability to 
effectively control manufacturing costs, both of which may negatively 
impact performance.  Demand for the Company's products also is sensitive
to general economic conditions in its market and would be negatively
affected by any economic downturn.
    Cost of Sales was  72.56% of net sales for the first quarter of 1999
and  77.92% for the first quarter of 1998.  Gross profit margin was
27.44% for the first quarter of 1999 and 22.08% for the first quarter
of 1998.
    Selling, General and Administrative expenses was 15.20% of net sales
for the first quarter of 1999 and  24.66% for the first quarter of 1998.
This drop is the result of holding Selling, General and Administrative
expenses relatively constant while our sales volume increased.
     We had a net income for the first quarter 1999 of $343,198 compared to
a net loss of  $47,529 for the first quarter of 1998.   This is  $0.42
per share for the  first quarter of 1999  and  <$0.06> per share for the
same period in 1998.
     There was no significant changes in liquidity and capital resources
during the first quarter of the year.  Production resumed in the Highway
40 facility on January 4, 1999 and is expected to remain operating for
the foreseeable future.  Production at this facility had been suspended
December 18, 1997 because of the adverse weather conditions.  It remained
idle through all of 1998.  By December 1998, demand for our houses had 
reached a level necessitating starting preparations to re-open the facility.
     The Company started a turnkey division a few years ago, which would 
give individual Mod-U-Kraf Homes customers the option to have the Company
finish the entire project at the job site.  In the past, individual 
customers would have to hire a contractor to dig out the basement, pour
the foundation, dig the well, put in a driveway, install the siding and 
finish "zipping up" the house once it is set on the foundation.  
Initially, this was an immaterial part of our business and did not require
any special accounting procedures.  Over the past three months, the Company's
Turnkey division has become a material source of revenue because of the 
increased number of turnkey contracts in progress at the end of the quarter.
As a result, management has elected to recognize revenue from fixed-price
and modified fixed-price construction contracts on the percentage-of-
completion method, measured by the cost-to-cost method.  This is reflected
on the Balance Sheet in "Costs and estimated earnings in excess of 
billings on uncompleted contracts", which represents revenues recognized
in excess of amounts billed.
	The year 2000 assessment of our internal computer systems has been
completed.  We believe computer systems and software are year 2000 compliant.
Certain key vendors have informed us that they do not expect disruptions of
services relating to the year 2000 problem, but plans have been made to 
survey our remaining key vendors by mid-year 1999.  Our telephone system
is not year 2000 compliant and will be upgraded or replaced by year-end
for an approximate cost of $25,000.  We do not foresee a significant impact
on our financial position as a result of this issue.

<PAGE>
                                   6                   
                    
                         MOD-U-KRAF HOMES, INC.                  
                    NOTES TO FINANCIAL INFORMATION               
                    
1.  The financial information furnished herein is not certified, but re-   
    flects all adjustments,  consisting only of normal recurring adjust-
    ments which are,  in the opinion of management,  necessary to a fair   
    statement of the results for the quarter ended March 31, 1999.   The   
    results for the quarter ended March 31, 1999 are not necessarily in-   
    dicative of results to be expected for the entire year.  The housing
    industry is seasonal  in nature and  revenues to the  Company during   
    the period April 1 to September 30 are normally greater than revenues
    during the balance of the year.                    
                    
    Both  primary & fully  diluted net income per common share are based   
    on the weighted average number of shares of common stock outstanding
    during each year and common stock equivalents of dilutive stock 
    options.                  
                    
2.  Revenue and cost recognition
    Revenues from fixed-price and modified fixed-price construction
    contracts are recognized on the percentage-of-completion method,
    measured by the cost-to-cost method. Revenues from cost-plus
    contracts are recognized on the basis of costs incurred during the
    period plus the fee earned.

    Contract costs include all direct material and labor costs. General,
    administrative, and indirect costs are charged to expense as incurred.
    Provisions for estimated losses on uncompleted contracts are made
    in the period in which such losses are determined. Changes in job
    performance, job conditions, and estimated profitability are 
    recognized in the period in which the revisions are determined.

    The asset, "Costs and estimated earnings in excess of billings on
    uncompleted contracts," represents revenues recognized in excess
    of amounts billed.    

3.  Cost and estimated earnings on uncompleted contracts
                                                       1999         1998
                                                       ----         ----
    Costs incurred on uncompleted contracts         $ 713,502    $ 750,858
    Estimated earnings                                276,309      332,574
                                                      -------      -------
                                                      989,811    1,083,432
    Less billings to date                             894,933      644,944
                                                    ---------      -------
    Costs and estimated earnings in excess
      of billings on uncompleted contracts          $  94,878    $ 438,488
                                                    =========      =======
   
4.  Inventories                    
    The components of inventories are as follows       1999         1998   
                                                       ----         ----
    Raw Materials                                  $1,120,300   $  680,736
    Work-In-Progress                                  267,772      148,434
    Finished Goods                                    922,104    1,035,121
    Land and Units held for sale                      292,416      415,858
                                                  -----------  -----------
                                                   $2,602,592   $2,280,149
                                                  ===========  ===========

5.  Notes Receivable                                   1999         1998
                                                       ----         ----
    Various mortgage notes receivable secured by                 
     deeds of trust                                 $ 155,860    $ 164,172
    Various construction loans(all current)           429,747      599,780
    Demand note receivable with interest payable                 
     quarterly at 9%, unsecured                         2,225        6,425
    Life insurance note receivable from an                  
     officer of the Company(non-interest bearing)       2,038        2,038
    Note receivable from the President, payable                  
     in annual principal installments of$5,625                   
     interest at 5.03%                                 11,250       16,875
                                                  -----------  -----------
                                                      601,120      789,290
        Less current portion                          444,068      614,172
                                                  -----------  -----------
                                                    $ 157,052    $ 175,118
                                                  ===========  ===========


6.  Property and Equipment                             1999         1998
                                                       ----         ----
    Land and improvements                          $  775,724   $  775,724
    Buildings                                       2,926,755    2,883,912
    Manufacturing equipment                         2,279,180    2,199,272
    Other furniture, fixtures and equipment           551,666      634,280
                                                  -----------  -----------
                                                    6,533,325    6,493,188
        Less accumulated depreciation              (3,025,216)  (2,625,677)
                                                  -----------  -----------
                                                   $3,508,109   $3,867,511
                                                  ===========  ===========
                    

7.  Deferred Compensation, Related Parties             1999         1998
                                                       ----         ----
    Present Value of deferred compensation                  
    benefits payable  to the widow of O.Z. Oliver                
    at $6,311 monthly until the earlier of her                   
    death or Sept. 2006, discounted at 8.50% in                  
    1995 and 1994.                                 $  418,803   $  457,229

    Present Value of deferred compensation                  
    benefits payable to Robert K. Fitts at $5,560                
    monthly until his death after which the                 
    benefits are payable to his spouse until the                 
    earlier of her death or July 2007, discounted                
    at 8.50% in 1995 and 1994.                        441,160      469,176

    Present value of estimated post-retirement                   
    benefits other than pensions discounted at                   
    8.50%                                             124,214      131,486
                                                  -----------  -----------
                                                      984,177    1,057,891
        Less Current Maturities                        79,788       73,714
                                                  -----------  -----------
                                                   $  904,389   $  984,177
                                                  ===========  ===========
                    
8.  Long-Term Debt                 
                    
    On July 12, 1995, the IDA of Franklin County, VA issued bonds in the   
    amount of  $3,000,000 to finance the construction of a manufacturing
    facility.   The Series 1995 Variable  Rate Demand Industrial Revenue
    Bonds are secured by the Company's Irrevocable Letter of Credit with   
    Crestar Bank. The letter of credit agreement subjects the Company to   
    certain financial and operating covenants,  all of which the Company
    was in compliance with at year end.  Crestar Bank holds a first lien   
    and  security interest on  the facility.   The bonds are  payable in   
    annual principal amounts of $150,000 through 2015. The interest rate   
    was 3.25% at March 31, 1999.                  
                    
    The  Company has  entered an  agreement to  purchase  the facility
    from the IDA.  The Company's obligation under the agreement is
    equal to the required principal and  interest payments on the bonds
    and is payable in monthly installments currently estimated at
    $22,000.  The monthly payments are deposited into a Reimbursement
    Account with  Crestar Bank and used to pay all  principal,  interest
    and fees related to the Bonds.   The Company also agreed to maintain
    an additional required deposit in the reimbursement account equal to   
    55 days of interest at 15.0% on the bonds. As of March 31, 1999, the   
    Reimbursement Account balance was as follows:                

         Required prepaid interest deposit      $ 67,810
         Unused monthly principal deposits       112,500
         Earnings                                 26,390
                                             -----------              
                                                $206,700
                                             ===========    
                
    The Company's policy is to reflect the  balance of the reimbursement
    account  as an asset  until the  funds are  used by the  trustee for   
    payment of bond obligations,  at which time the  Company reduces its   
    obligations under the asset sale agreement.                  
                    
    As of  March 31, 1999,  $3,000,000  of the  bond proceeds  have been   
    drawn from the trustee.   The  Company's obligation  under the asset   
    sale agreement is reflected at the amount of bond proceeds that have   
    been drawn.   Any unused proceeds will be used for  early retirement
    of bonds.                 
                    
    In July 1998, all of the remaining bond proceeds were drawn from the
    trustee.  The Company's obligation under the asset sale agreement
    is reflected at the amount of bond proceeds that have been drawn less 
    cululative payments of $450,000.  The unused proceeds and related 
    earnings at July 1998 were used to complete additions to the new 
    manufacturing facility and for bond related expenses.       
                    
    Debt issue costs will be amortized over the life of the bonds.
                    
9.  The Board Of Directors of Mod-U-Kraf Homes, Inc. on  May 5, 1999 de-   
    clared a  $.03 per share  cash dividend on all shares outstanding on   
    May 21, 1999 and to be paid on June 11, 1999.                 
                    
10.  The Company uses the annualized method in its computation of Federal
    Income Taxes.                  
                    
11.  Revenues are recorded when the houses are  delivered for  sales made   
    on account.  Cash sales paid in advance are recorded when produced.


<PAGE>
                                   7                   

                          MOD-U-KRAF HOMES, INC.                 

                            OTHER INFORMATION                    


Item 4.  Submission of Matters to a Vote of Security Holders     
         ---------------------------------------------------     
         Mod-U-Kraf Homes, Inc.  held its annual meeting of shareholders
         on March 24, 1999   The following were elected to the Board of
         Directors: Dale H. Powell, Edwin J. Campbell, W. Curtis Carter,
         Bobbie L. Oliver and Mary L. Fitts.  Following the meeting the
         following were elected officers: Dale H Powell, President,
         Edwin J Campbell, Executive Vice President,  Jeffrey D Powell,
         Vice President of Operations, George Scott, Vice President of
         Administration and Steven T. Montgomery, Controller.         

         The votes cast in the election of directors were as follows:

         Name                   For        Against/Withheld     
         ---------           ---------     ----------------     
         W. Curtis Carter     641,606             9,888             
         Mary L. Fitts        641,606             9,888             
         Dale H. Powell       641,606             9,888             
         Bobbie L. Oliver     641,606             9,888             
         Edwin J. Campbell    641,606             9,888             


<PAGE>
                                  8

                         MOD-U-KRAF HOMES, INC.

                               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.


                                      MOD-U-KRAF HOMES, INC.
                                ----------------------------------
                                          (Registrant)


Date: May 13, 1999


                                ----------------------------------
                                           Dale H. Powell
                                President and Chairman of the Board


                                ----------------------------------
                                        Steven T. Montgomery
                                             Controller