UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                            FORM 10-K

 Annual Report Pursuant to Section 13 or 15(d) of The Securities
                      Exchange Act of 1934

          For the Fiscal Year Ended:  December 31, 2008

               Commission file number:  000-18289

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
     (Exact name of registrant as specified in its charter)

      State of Minnesota                41-1622463
(State or other jurisdiction of      (I.R.S. Employer
incorporation or organization)     Identification No.)

      30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
            (Address of principal executive offices)

                          (651) 227-7333
                 (Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act:
     Title of each class         Name of each exchange on which registered
           None                               None

Securities registered pursuant to Section 12(g) of the Act:
                      Limited Partnership Units
                         (Title of class)

Indicate by check mark if the registrant is a well-known seasoned
issuer, as defined in Rule 405 of the Securities Act.  Yes    No [X]

Indicate by check mark if the registrant is not required to  file
reports pursuant to Section 13 or
Section 15(d) of the Exchange Act.  Yes    No [X]

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

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.  [X]

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.
   Large accelerated filer           Accelerated filer
   Non-accelerated  filer            Smaller  reporting company  [X]

Indicate by check mark whether the registrant is a shell  company
(as  defined  in  Rule 12b-2 of the  Act).   Yes     No [X]

As  of  June  30,  2008, there were 18,952.133 Units  of  limited
partnership  interest outstanding and owned by  nonaffiliates  of
the  registrant, which Units had an aggregate market value (based
solely  on  the price at which they were sold since there  is  no
ready market for such Units) of $18,952,133.

               DOCUMENTS INCORPORATED BY REFERENCE
 The registrant has not incorporated any documents by reference
                        into this report.

                             PART I

ITEM 1.   BUSINESS.

        AEI  Real  Estate  Fund  XVIII Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of Minnesota  on
September  20,  1988.  The registrant is comprised  of  AEI  Fund
Management XVIII, Inc. (AFM) as Managing General Partner,  Robert
P.  Johnson,  the  President and sole director  of  AFM,  as  the
Individual  General Partner, and purchasers of partnership  units
as  Limited  Partners.  The Partnership offered for  sale  up  to
$30,000,000  of  limited  partnership  interests  (the   "Units")
(30,000  Units  at  $1,000 per Unit) pursuant to  a  registration
statement  effective December 5, 1988.  The Partnership commenced
operations  on  February 15, 1989 when minimum  subscriptions  of
1,500 Limited Partnership Units ($1,500,000) were accepted.   The
Partnership's  offering  terminated December  4,  1990  when  the
extended  offering  period  expired.   The  Partnership  received
subscriptions    for   22,783.05   Limited   Partnership    Units
($22,783,050).

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States and Canada, to lease such
properties  to  tenants under triple net  leases,  to  hold  such
properties   and  to  eventually  sell  such  properties.    From
subscription  proceeds,  the  Partnership  purchased   twenty-one
properties,  including  partial  interests  in  five  properties,
totaling  $18,868,379.  The balance of the subscription  proceeds
was  applied  to  organization  and  syndication  costs,  working
capital reserves and distributions, which represented a return of
capital.   The properties are commercial, single tenant buildings
leased under triple net leases.

       In January 2009, the Managing General Partner solicited by
mail  a  proxy  statement  seeking the  consent  of  the  Limited
Partners,   as  required  by  Section  6.1  of  the   Partnership
Agreement,  to  initiate the final disposition,  liquidation  and
distribution  of all of the Partnership's properties  and  assets
within  the  next year.  On February 24, 2009, the  proposal  was
approved with a majority of Units voted in favor of the proposal.
As  a result, the Managing General Partner will proceed with  the
planned liquidation of the Partnership.  If the Partnership sells
its  remaining  property  in  2009, the  Partnership  anticipates
liquidation to occur by December 31, 2009.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants  under triple net leases, classified as operating leases.
Under a triple net lease, the tenant is responsible for all  real
estate  taxes,  insurance,  maintenance,  repairs  and  operating
expenses  for  the  property.  At the time  the  properties  were
acquired, the remaining primary lease terms varied from 15 to  20
years.  The leases provide the tenant with two to three five-year
renewal options subject to the same terms and conditions  as  the
primary  term.   The  leases  provide  for  base  annual   rental
payments,  payable  in  monthly installments,  and  contain  rent
clauses which entitle the Partnership to receive additional  rent
in future years based on stated rent increases.

ITEM 1.   BUSINESS.  (Continued)

Property Activity During the Last Three Years

        Prior to the second quarter of 2005, the Partnership sold
some  of  its  properties and reinvested the proceeds  from  such
sales  in additional properties.  In the second quarter of  2005,
the  Partnership  decided  to  discontinue  the  reinvestment  of
proceeds  from  property sales in additional  properties  and  to
distribute sales proceeds to the Partners going forward.   As  of
December  31, 2005, the Partnership owned a significant  interest
in nine properties and a minor interest in four properties with a
total   original  cost  of  $12,280,290,  including   acquisition
expenses.   During the years ended December 31,  2006,  2007  and
2008,  the Partnership sold eight property interests and received
net  sale  proceeds  of  $7,344,828, $2,160,636  and  $3,602,373,
respectively.  As of December 31, 2008, the Partnership  owned  a
significant interest in one property and a minor interest in four
properties with a total original cost of $788,987 and a total net
realizable value of $1,074,400.

Major Tenants

        During 2008, three tenants each contributed more than ten
percent  of  the Partnership's total rental revenue.   The  major
tenants  in aggregate contributed 89% of total rental revenue  in
2008.  With the planned liquidation of the Partnership, the major
tenant information will no longer be applicable.

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of AFM.

ITEM 1A.  RISK FACTORS.

       Not required for a smaller reporting company.

ITEM 1B.  UNRESOLVED STAFF COMMENTS.

       Not required for a smaller reporting company.

ITEM 2.   PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States  and  Canada  that offer  the  potential  for  (i)
preservation  and protection of the Partnership's  capital;  (ii)
partially  tax-deferred cash distributions from operations  which
may  increase through rent participation clauses or mandated rent
increases; and (iii) long-term capital gains through appreciation
in value of the Partnership's properties realized upon sale.  The
Partnership  does not have a policy, and there is no  limitation,
as  to the amount or percentage of assets that may be invested in
any  one  property.  However, to the extent possible, the General
Partners  attempted  to diversify the type and  location  of  the
Partnership's properties.

Description of Properties

       The Partnership's properties are commercial, single tenant
buildings.  The properties were acquired on a debt-free basis and
are leased to various tenants under triple net leases, classified
as  operating  leases.  The Partnership holds  an  undivided  fee
simple  interest in the properties.  At any time prior to selling
the  properties, the Partnership may mortgage one or more of  its
properties in amounts not exceeding 50% of the aggregate purchase
price of all Partnership properties.

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 2008.

                         Total Property                Annual
             Purchase     Acquisition                   Lease     Annual Rent
Property       Date          Costs        Tenant       Payment    Per Sq. Ft.

Taco Cabana Restaurant
 San Antonio, TX                        Texas Taco
 (9.3699%)    7/19/91      $107,933     Cabana L.P.    $21,840      $52.09

Tractor Supply
 Company Store
 Bristol, VA                          Tractor Supply
 (7.5158%)    4/10/96      $ 96,765    Company, Inc.   $12,725      $ 9.03

ITEM 2.   PROPERTIES.  (Continued)

                         Total Property                Annual
             Purchase     Acquisition                   Lease     Annual Rent
Property       Date          Costs        Tenant       Payment    Per Sq. Ft.

Champps Americana
 Restaurant                              Champps
 Columbus, OH                           Operating
 (.5061%)     8/29/96      $ 12,984    Corporation     $ 1,875      $45.35

Fuddruckers Restaurant
 Thornton, CO
 (.7606%)    7/30/97       $ 10,693  Fuddruckers, Inc. $ 1,386      $36.61

Tumbleweed Restaurant
 Chillicothe, OH                        Tumbleweed,
 (43.9634%) 11/20/98       $560,612        Inc.        $68,256      $28.31

        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
unrelated  third  parties.   The  remaining  interests   in   the
Tumbleweed restaurant are owned by AEI Net Lease Income &  Growth
Fund  XIX  Limited Partnership and unrelated third parties.   The
remaining  interests in the Taco Cabana restaurant,  the  Tractor
Supply  Company store, the Fuddruckers restaurant and the Champps
Americana restaurant are owned by unrelated third parties.

        The Partnership accounts for properties owned as tenants-
in-common with affiliated entities and/or unrelated third parties
using  the  proportionate consolidation method.  Each  tenant-in-
common  owns  a  separate, undivided interest in the  properties.
Any tenant-in-common that holds more than a 50% interest does not
control decisions over the other tenant-in-common interests.  The
financial  statements reflect only this Partnership's  percentage
share   of   the   properties'  land,  building  and   equipment,
liabilities, revenues and expenses.

        At  the  time the properties were acquired, the remaining
primary  lease  terms  varied from 15 to 20  years.   The  leases
provide  the tenants with two to three five-year renewal  options
subject to the same terms and conditions as the primary term.

       Pursuant to the lease agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The General Partners believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Partnership's operations.

ITEM 2. PROPERTIES.  (Continued)

         For  tax  purposes,  the  Partnership's  properties  are
depreciated  under the Modified Accelerated Cost Recovery  System
(MACRS).  The largest depreciable component of a property is  the
building  which  is depreciated, using the straight-line  method,
over  31.5  years or 39 years depending on the date when  it  was
placed  in  service.  The remaining depreciable components  of  a
property  are personal property and land improvements  which  are
depreciated,  using an accelerated method, over 5 and  15  years,
respectively.  Since the Partnership has tax-exempt Partners, the
Partnership is subject to the rules of Section 168(h)(6)  of  the
Internal  Revenue  Code  which  requires  a  percentage  of   the
properties' depreciable components to be depreciated over  longer
lives  using  the straight-line method.  In general, the  federal
tax  basis of the properties for tax depreciation purposes is the
same as the basis for book depreciation purposes.

        At  December 31, 2008, all properties listed  above  were
100% occupied.

ITEM 3.   LEGAL PROCEEDINGS.

       None.

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

       None.


                             PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        (a) As of December 31, 2008, there were 1,389 holders  of
record  of the registrant's Limited Partnership Units.  There  is
no  other  class  of  security outstanding  or  authorized.   The
registrant's  Units  are  not a traded security  in  any  market.
During the period covered by this report, the Partnership did not
sell  any  equity  securities that are not registered  under  the
Securities Act of 1933.

       Cash distributions of $36,215 and $22,811 were made to the
General Partners and $3,585,294 and $2,258,269 were made  to  the
Limited   Partners   for  2008  and  2007,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,   the   Partnership  distributed  net  sale  proceeds   of
$3,538,488  and  $1,839,352 in 2008 and 2007, respectively.   The
distributions  reduced  the  Limited Partners'  Adjusted  Capital
Contributions.

       (b) Not applicable.

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCK-
        HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

        (c) Pursuant to Section 7.7 of the Partnership Agreement,
as  amended, each Limited Partner has the right to present  Units
to  the  Partnership  for purchase by submitting  notice  to  the
Managing  General Partner.  The purchase price of  the  Units  is
equal to 90% of the net asset value per Unit as determined by the
Managing General Partner in accordance with the provisions of the
Partnership  Agreement.  Units tendered to  the  Partnership  are
redeemed  at  the purchase price established for the  quarter  in
which the Partnership received a notice at least 60 days prior to
the  repurchase  dates of January 1st, April 1st,  July  1st  and
October   1st   subject  to  the  following   limitations.    The
Partnership is not obligated to purchase in any year more than 5%
of  the number of Units outstanding at the beginning of the year.
In  no event shall the Partnership be obligated to purchase Units
if,  in the sole discretion of the Managing General Partner, such
purchase   would   impair  the  capital  or  operation   of   the
Partnership.   During  the  last  three  months  of   2008,   the
Partnership did not purchase any Units.

ITEM 6.   SELECTED FINANCIAL DATA.

       Not required for a smaller reporting company.

ITEM  7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS.

        This  section contains "forward looking statements" which
represent management's expectations or beliefs concerning  future
events, including statements regarding anticipated application of
cash, expected returns from rental income, growth in revenue, the
sufficiency  of  cash  to  meet  operating  expenses,  rates   of
distribution,  and  other  matters.   These,  and  other  forward
looking  statements,  should be evaluated in  the  context  of  a
number  of  factors  that may affect the Partnership's  financial
condition and results of operations, including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    effects of these consequences for the Partners;

    resolution  by  the General Partners of  conflicts  with
    which they may be confronted;

    the effect of tenant defaults; and

    the  condition of the industries in which the  tenants  of
    properties owned by the Partnership operate.


Application of Critical Accounting Policies

        The preparation of the Partnership's financial statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses  to  the  Partnership as opposed  to  other  funds  they
manage.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        Through  September  30, 2007, the  Partnership  purchased
properties and recorded them in the financial statements at  cost
(including  capitalized acquisition expenses).   The  Partnership
tested  long-lived  assets  for  recoverability  when  events  or
changes  in circumstances indicated that the carrying  value  may
not  have been recoverable.  For properties the Partnership would
hold   and  operate,  management  determined  whether  impairment
occurred  by  comparing the property's probability-weighted  cash
flows  to its then carrying value.  For properties held for sale,
management  determined whether impairment occurred  by  comparing
the  property's  estimated fair value less cost to  sell  to  its
current  carrying value.  If the carrying value was greater  than
the  realizable value, an impairment loss was recorded to  reduce
the carrying value of the property to its realizable value.

        Effective  October 1, 2007, the Partnership  adopted  the
liquidation basis of accounting because, pending the approval  of
the  Limited  Partners,  the  General  Partners  anticipated  the
liquidation  of the Partnership during 2008.  In accordance  with
the liquidation basis of accounting, assets are recorded at their
estimated net realizable value (the amount of cash expected to be
received) and liabilities are recorded at the amount estimated to
be  paid  to creditors and Partners.  At December 31,  2008,  the
estimated real estate values were based upon comparable sales  of
similar  properties.   Any changes in these estimates  may  cause
material changes in the net assets in liquidation.

        AEI  Fund Management, Inc. allocates expenses to each  of
the  funds  they manage primarily on the basis of the  number  of
hours  devoted  by their employees to each fund's affairs.   They
also  allocate  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds  they  manage.   The  Partnership  reimburses  these
expenses  subject  to  detailed  limitations  contained  in   the
Partnership Agreement.

         Management   of  the  Partnership  has   discussed   the
development  and selection of the above accounting estimates  and
the management discussion and analysis disclosures regarding them
with the managing partner of the Partnership.

Results of Operations

        For the years ended December 31, 2008 and 2007, while  in
the  liquidation and operating phases, the Partnership recognized
rental  income of $142,776 and $514,737, respectively.  In  2008,
rental  income  decreased mainly as a result of  property  sales.
During  the  same  periods, the Partnership  recognized  interest
income  of  $28,783 and $67,073, respectively.   Interest  income
decreased  mainly due to lower money market rates in  2008,  when
compared to 2007.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        For the years ended December 31, 2008 and 2007, while  in
the  liquidation  and operating phases, the Partnership  incurred
Partnership  administration expenses from affiliated  parties  of
$66,555 and $99,887, respectively.  These administration expenses
include  costs associated with the management of the  properties,
processing    distributions,    reporting    requirements     and
communicating  with the Limited Partners.  As  the  Partnership's
asset  base  decreases due to property sales, it is  allocated  a
smaller  share  of  expenses  that  are  allocated  by  AEI  Fund
Management, Inc. based on the relative assets of the funds  under
management.   During  the same periods, the Partnership  incurred
Partnership administration and property management expenses  from
unrelated  parties  of $51,224 and $58,774, respectively.   These
expenses represent direct payments to third parties for legal and
filing  fees,  direct administrative costs, outside audit  costs,
taxes, insurance and other property costs.

        At December 31, 2008 and 2007, the Partnership recognized
adjustments  of estimated values of ($3,483,316) and  $4,108,083,
respectively,  resulting from adopting the liquidation  basis  of
accounting  and recording its assets at estimated net  realizable
value and liabilities at the amount estimated to be paid.

         Management  believes  inflation  has  not  significantly
affected  income  from  operations.   Leases  may  contain   rent
increases, based on the increase in the Consumer Price Index over
a  specified period, which will result in an increase  in  rental
income over the term of the leases.  Inflation also may cause the
real  estate  to  appreciate in value.   However,  inflation  and
changing  prices  may  have an adverse impact  on  the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

       In January 2009, the Managing General Partner solicited by
mail  a  proxy  statement  seeking the  consent  of  the  Limited
Partners,   as  required  by  Section  6.1  of  the   Partnership
Agreement,  to  initiate the final disposition,  liquidation  and
distribution  of all of the Partnership's properties  and  assets
within  the  next year.  On February 24, 2009, the  proposal  was
approved with a majority of Units voted in favor of the proposal.
As  a result, the Managing General Partner will proceed with  the
planned liquidation of the Partnership.  If the Partnership sells
its  remaining  property  in  2009, the  Partnership  anticipates
liquidation to occur by December 31, 2009.

        During  the  year ended December 31, 2008, while  in  the
liquidation  phase, the Partnership's Net Assets  in  Liquidation
decreased  $3,553,856 as a result of distributions  of  net  sale
proceeds to the Partners.  During the period from October 1, 2007
to  December  31,  2007,  while in  the  liquidation  phase,  the
Partnership's  Net  Assets  in Liquidation  increased  $2,508,862
mainly  as a result of the adjustment to increase Investments  in
Real  Estate  from their historical bases to their estimated  net
realizable  value.   During the period from January  1,  2007  to
September   30,   2007,  while  in  the  operating   phase,   the
Partnership's  cash balances decreased $704,604 as  a  result  of
distributions  paid to the Partners in excess of  cash  generated
from operating and investing activities.

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       During the first nine months of 2007, the Partnership sold
38.8529%  of the Eckerd drug store in Auburn, New York,  in  nine
separate   transactions,  to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,947,905, which
resulted  in  a  net  gain of $252,126.   The  cost  and  related
accumulated depreciation of the interests sold was $1,777,236 and
$81,457, respectively.

        During  the fourth quarter of 2007, the Partnership  sold
its  remaining  4.2781%  interest in the  Eckerd  drug  store  in
Auburn,  New  York to an unrelated third party.  The  Partnership
received  net  sale proceeds of $212,731.  The cost  and  related
accumulated  depreciation of the interest sold was  $195,691  and
$8,969, respectively.

        On  June  30,  2007,  the  Lease  term  expired  for  the
KinderCare daycare center in Blue Springs, Missouri.  The  tenant
reviewed  their  operations at the property and  decided  not  to
enter  into  an agreement to extend the term of the  Lease.   The
Partnership  listed  the property for sale  with  a  real  estate
broker  in the Blue Springs area.  While the property was vacant,
the  Partnership was responsible for real estate taxes and  other
costs associated with maintaining the property.

        On  July  23,  2008, the Partnership sold the  KinderCare
daycare  center  in Blue Springs, Missouri to an unrelated  third
party.   The Partnership received net sale proceeds of  $549,943.
At  the  time  of  sale, the estimated net realizable  value  was
$550,000.

        On  January 25, 2008, the Partnership sold the KinderCare
daycare center in Westerville, Ohio to an unrelated third  party.
The Partnership received net sale proceeds of $1,423,596.  At the
time of sale, the estimated net realizable value was $1,415,000.

        On  March  12, 2008, the Partnership sold the  KinderCare
daycare  center  in Columbus, Ohio to an unrelated  third  party.
The Partnership received net sale proceeds of $1,628,834.  At the
time of sale, the estimated net realizable value was $1,617,000.

       The Partnership's primary use of cash flow is distribution
payments  to  Partners.   The Partnership  declares  its  regular
quarterly distributions before the end of each quarter  and  pays
the distribution in the first week after the end of each quarter.
The  Partnership attempts to maintain a stable distribution  rate
from quarter to quarter.

        For  the  years  ended December 31, 2008  and  2007,  the
Partnership  declared distributions of $3,621,509 and $2,281,080,
respectively, which were distributed 99% to the Limited  Partners
and  1%  to the General Partners.  The Limited Partners  received
distributions  of  $3,585,294  and  $2,258,269  and  the  General
Partners  received distributions of $36,215 and $22,811  for  the
years, respectively.  In September 2007, the Partnership declared
a  special  distribution of net sale proceeds of $1,717,172.   In
March  and  September  2008,  the  Partnership  declared  special
distributions  of net sale proceeds of $2,828,283  and  $505,051,
respectively, which resulted in higher distributions in 2008.

       During 2008 and 2007, the Partnership distributed net sale
proceeds of $3,574,230 and $1,857,931 to the Limited and  General
Partners   as  part  of  their  quarterly  distributions,   which
represented a return of capital of $186.66 and $97.03 per Limited
Partnership Unit, respectively.


ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

       The continuing rent payments from the properties, together
with  the Partnership's cash reserve, should be adequate to  fund
continuing distributions and meet other Partnership obligations.

The Economy and Market Conditions

       The impact of conditions in the current economy, including
the  turmoil  in the credit markets, has adversely affected  many
real   estate  companies.   However,  the  absence  of   mortgage
financing on the Partnership's properties eliminates the risks of
foreclosure and debt-refinancing that can negatively  impact  the
value  and  distributions  of leveraged  real  estate  companies.
Nevertheless, a prolonged economic downturn may adversely  affect
the operations of the Partnership's tenants and their cash flows.
If  a  tenant  were  to  default on its  lease  obligations,  the
Partnership's  income  would decrease,  its  distributions  would
likely be reduced and the value of its properties might decline.

        Beginning in the fourth quarter of 2008, general economic
conditions   caused  the  volume  of  property  sales   to   slow
dramatically  for all real estate sellers.  These conditions  may
make  it more difficult for the Partnership to sell its remaining
properties  at acceptable prices, which it must do  in  order  to
complete its liquidation.

ITEM  7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

       See accompanying index to financial statements.






         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS





Report of Independent Registered Public Accounting Firm              13

Statement of Net Assets Available for Liquidation at December 31,
 2008 and 2007                                                       14

Statement of Liquidating Activities for the Year Ended December
31, 2008 and for the Period from October 1, 2007 to December 31,
2007                                                                 15

Statements for the Period From January 1, 2007 to
September 30, 2007

     Income                                                          16

     Cash Flows                                                      17

     Changes in Partners' Capital                                    18

Notes to Financial Statements                                   19 - 28


     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners:
AEI Real Estate Fund XVIII Limited Partnership
St. Paul, Minnesota

      We  have audited the accompanying statements of net  assets
available  for liquidation of AEI Real Estate Fund XVIII  Limited
Partnership (a Minnesota limited partnership) as of December  31,
2008  and 2007, and the related statements of income, cash  flows
and  changes in partners' capital for the period from January  1,
2007  to  September  30, 2007. We also have audited  the  related
statement  of liquidating activities for the year ended  December
31,  2008 and for the period from October 1, 2007 to December 31,
2007.   The  Partnership's management is  responsible  for  these
financial statements. Our responsibility is to express an opinion
on these financial statements based on our audits.

      We conducted our audits in accordance with the standards of
the  Public  Company Accounting Oversight Board (United  States).
Those  standards require that we plan and perform  the  audit  to
obtain   reasonable   assurance  about  whether   the   financial
statements are free of material misstatement. The company is  not
required to have, nor were we engaged to perform, an audit of its
internal  control  over financial reporting. Our  audit  included
consideration of internal control over financial reporting  as  a
basis for designing audit procedures that are appropriate in  the
circumstances, but not for the purpose of expressing  an  opinion
on  the  effectiveness  of the company's  internal  control  over
financial reporting. Accordingly, we express no such opinion.  An
audit   also  includes  examining,  on  a  test  basis,  evidence
supporting   the  amounts  and  disclosures  in   the   financial
statements,   assessing  the  accounting  principles   used   and
significant  estimates made by management, as well as  evaluating
the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.

      As  described in the Notes to the financial statements, the
General   Partners  of  AEI  Real  Estate  Fund   XVIII   Limited
Partnership anticipate the liquidation of the Partnership  during
2009.   Because liquidation was imminent, the Partnership changed
its  basis of accounting after September 30, 2007, from the going
concern basis to the liquidation basis.

      In  our opinion, the financial statements referred to above
present  fairly,  in  all  material  respects,  the  results   of
operations  and cash flows of AEI Real Estate Fund XVIII  Limited
Partnership for the period from January 1, 2007 to September  30,
2007, the net assets available for liquidation as of December 31,
2008  and  2007, and the statement of liquidating activities  for
the  year ended December 31, 2008 and for the period from October
1,  2007  to  December  31, 2007, in conformity  with  accounting
principles generally accepted in the United States of America.



                          /s/Boulay, Heutmaker, Zibell & Co. P.L.L.P.
                                     Certified Public Accountants

Minneapolis, Minnesota
March 26, 2009

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
        STATEMENT OF NET ASSETS AVAILABLE FOR LIQUIDATION
                   DECEMBER 31, 2008 AND 2007



                                                     2008            2007

ASSETS:
  Cash                                          $   833,860      $   904,400
  Receivables                                             0            6,500
  Investments in Real Estate                      1,074,400        4,656,400
                                                 -----------      -----------
          Total Assets                            1,908,260        5,567,300
                                                 -----------      -----------

LIABILITIES:
  Payable to AEI Fund Management, Inc.                5,675           24,536
  Distributions Payable                              51,512          115,890
  Unearned Rent                                           0           21,945
                                                 -----------      -----------
          Total Liabilities                          57,187          162,371
                                                 -----------      -----------
NET ASSETS (PARTNERS' CAPITAL) IN LIQUIDATION,
  including 18,957 Limited Partnership
  Units outstanding                             $ 1,851,073      $ 5,404,929
                                                 ===========      ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
               STATEMENT OF LIQUIDATING ACTIVITIES
        FOR THE YEAR ENDED DECEMBER 31, 2008 AND FOR THE
        PERIOD FROM OCTOBER 1, 2007 TO DECEMBER 31, 2007

                                                      2008          2007

SOURCES OF ADDITIONAL CASH:
  Rent                                            $   120,831    $    97,617
  Interest Income                                      28,783          9,417
  Proceeds from Sale of Real Estate                 3,602,373        212,731
                                                   -----------    -----------
      Total Sources of Additional Cash              3,751,987        319,765
                                                   -----------    -----------

USES OF ADDITIONAL CASH:
  Partnership Administration - Affiliates              66,555         20,759
  Partnership Administration and Property
     Management - Unrelated Parties                    70,085         33,231
  Distributions Paid to Partners                    3,685,887      1,864,996
                                                   -----------    -----------
      Total Uses of Additional Cash                 3,822,527      1,918,986
                                                   -----------    -----------
DECREASE IN NET ASSETS IN LIQUIDATION
  BEFORE ADJUSTMENTS                                  (70,540)    (1,599,221)
                                                   -----------    -----------

ADJUSTMENTS OF ESTIMATED VALUES:
  Increase in Net Realizable values of:
     Receivables                                       (6,500)             0
     Real Estate                                            0      2,529,841
     Payable to AEI Fund Management, Inc.              18,861         15,624
     Distributions Payable                             64,378      1,746,507
     Unearned Rent                                     21,945          2,833
     Net Realizable Value of Real Estate Sold      (3,582,000)      (186,722)
                                                   -----------    -----------
       Total Adjustment of Estimated Values        (3,483,316)     4,108,083
                                                   -----------    -----------

INCREASE (DECREASE) IN
 NET ASSETS IN LIQUIDATION                         (3,553,856)     2,508,862

BEGINNING NET ASSETS IN LIQUIDATION                 5,404,929      2,896,067
                                                   -----------    -----------
ENDING NET ASSETS IN LIQUIDATION                  $ 1,851,073    $ 5,404,929
                                                   ===========    ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                       STATEMENT OF INCOME
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007




INCOME FROM DISCONTINUED OPERATIONS:
  Rental Income                                             $   414,287
  Partnership Administration - Affiliates                       (79,128)
  Partnership Administration and Property
     Management - Unrelated Parties                             (41,167)
  Depreciation                                                  (61,985)
  Gain on Sale of Real Estate                                   252,126
                                                             -----------
         Total Income from Discontinued Operations              484,133
                                                             -----------
OTHER INCOME:
   Interest Income                                               57,656
                                                             -----------
NET INCOME                                                  $   541,789
                                                             ===========

NET INCOME ALLOCATED:
  General Partners                                          $     9,104
  Limited Partners                                              532,685
                                                             -----------
                                                            $   541,789
                                                             ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT                     $     28.10
                                                             ===========

Weighted Average Units Outstanding                               18,957
                                                             ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                     STATEMENT OF CASH FLOWS
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007



CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                                $   541,789

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                                61,985
     Gain on Sale of Real Estate                               (252,126)
     Increase in Receivables                                     (6,500)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                                24,681
     Decrease in Unearned Rent                                   (8,464)
                                                             -----------
       Total Adjustments                                       (180,424)
                                                             -----------
       Net Cash Provided By
           Operating Activities                                 361,365
                                                             -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from Sale of Real Estate                           1,947,905
                                                             -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Distributions Paid to Partners                             (3,013,874)
                                                             -----------

NET DECREASE IN CASH                                           (704,604)

CASH, beginning of period                                     3,208,225
                                                             -----------
CASH, end of period                                         $ 2,503,621
                                                             ===========

 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
    FOR THE PERIOD FROM JANUARY 1, 2007 TO SEPTEMBER 30, 2007


                                                                   Limited
                                                                  Partnership
                              General      Limited                  Units
                              Partners     Partners     Total    Outstanding


BALANCE, December 31, 2006   $ 15,006    $4,501,863  $4,516,869    18,957.13

   Distributions Declared     (21,626)   (2,140,965) (2,162,591)

   Net Income                   9,104       532,685     541,789
                              --------    ----------  ----------  -----------
BALANCE, September 30, 2007  $  2,484    $2,893,583  $2,896,067    18,957.13
                              ========    ==========  ==========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(1)  Organization -

     AEI    Real    Estate   Fund   XVIII   Limited   Partnership
     ("Partnership")  was formed to acquire and lease  commercial
     properties   to   operating  tenants.    The   Partnership's
     operations  are managed by AEI Fund Management  XVIII,  Inc.
     ("AFM"),  the Managing General Partner.  Robert P.  Johnson,
     the  President  and  sole director of  AFM,  serves  as  the
     Individual   General  Partner.   AFM  is  a   wholly   owned
     subsidiary  of AEI Capital Corporation of which Mr.  Johnson
     is  the  majority  shareholder.  AEI Fund  Management,  Inc.
     ("AEI"),  an  affiliate of AFM, performs the  administrative
     and operating functions for the Partnership.

     The   terms  of  the  Partnership  offering  called  for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  15,  1989  when  minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)   were   accepted.   The  offering   terminated
     December  4, 1990 when the extended offering period expired.
     The Partnership received subscriptions for 22,783.05 Limited
     Partnership   Units.   Under  the  terms  of   the   Limited
     Partnership  Agreement,  the Limited  Partners  and  General
     Partners  contributed  funds  of  $22,783,050,  and  $1,000,
     respectively.

     During operations, any Net Cash Flow, as defined, which  the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum. Distributions to Limited Partners will  be  made
     pro rata by Units.

     Any  Net  Proceeds  of Sale as defined,  from  the  sale  or
     financing of properties which the General Partners determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner:  (i) first, 99%  to  the
     Limited  Partners and l% to the General Partners  until  the
     Limited  Partners  receive an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 6%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash Flow; (ii) next, 99% to the Limited Partners
     and  1%  to the General Partners until the Limited  Partners
     receive  an  amount equal to 14% of their  Adjusted  Capital
     Contribution  per annum, cumulative but not  compounded,  to
     the  extent not previously distributed; (iii) next,  to  the
     General  Partners  until  cumulative  distributions  to  the
     General  Partners under Items (ii) and (iii)  equal  15%  of
     cumulative  distributions to all Partners under  Items  (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(1)  Organization - (Continued)

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent,  Net  Cash Flow is distributed to the  Partners  for
     such year.  Any additional profits will be allocated 90%  to
     the Limited Partners and 10% to the General Partners. In the
     event  no  Net  Cash  Flow  is distributed  to  the  Limited
     Partners,  90%  of each item of income, gain or  credit  for
     each  respective  year  shall be allocated  to  the  Limited
     Partners,  and 10% of each such item shall be  allocated  to
     the  General Partners.  Net losses from operations  will  be
     allocated 98% to the Limited Partners and 2% to the  General
     Partners.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with the Partnership Agreement as  follows:  (i)
     first,  to  those  partners with deficit balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the Limited  Partners
     and  1%  to the General Partners until the aggregate balance
     in  the Limited Partners' capital accounts equals the sum of
     the Limited Partners' Adjusted Capital Contributions plus an
     amount  equal to 14% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated; (iii) third, to the General  Partners
     until  cumulative allocations to the General Partners  equal
     15%  of cumulative allocations.  Any remaining balance  will
     be  allocated  85% to the Limited Partners and  15%  to  the
     General  Partners.   Losses will be  allocated  98%  to  the
     Limited Partners and 2% to the General Partners.

     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.

     In  January 2009, the Managing General Partner solicited  by
     mail  a  proxy statement seeking the consent of the  Limited
     Partners,  as  required by Section 6.1  of  the  Partnership
     Agreement,  to  initiate the final disposition,  liquidation
     and  distribution of all of the Partnership's properties and
     assets  within  the next year.  On February  24,  2009,  the
     proposal  was  approved with a majority of  Units  voted  in
     favor  of  the proposal.  As a result, the Managing  General
     Partner  will  proceed with the planned liquidation  of  the
     Partnership.    If  the  Partnership  sells  its   remaining
     property in 2009, the Partnership anticipates liquidation to
     occur by December 31, 2009.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       Because   liquidation  was  anticipated,  the  Partnership
       changed its basis of accounting after September 30,  2007,
       from  the  going  concern basis to the liquidation  basis.
       Effective  October 1, 2007, the Partnership  measures  its
       assets and liabilities at the amounts of cash expected  in
       liquidation  and  reports changes in estimates  when  they
       are   known.    The   accounts  of  the  Partnership   are
       maintained  on  the accrual basis of accounting  for  both
       federal   income  tax  purposes  and  financial  reporting
       purposes.

     Accounting Estimates

       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual results could differ from those estimates.

       The  Partnership regularly assesses whether market  events
       and conditions indicate that it is reasonably possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate.

     Cash Concentrations of Credit Risk

       The  Partnership's  cash  is deposited  in  one  financial
       institution  and at times during the year  it  may  exceed
       FDIC insurance limits.

     Receivables

       Credit  terms are extended to tenants in the normal course
       of  business.   The  Partnership performs  ongoing  credit
       evaluations  of  its customers' financial  condition  and,
       generally, requires no collateral.

       Receivables   are   recorded  at   their   estimated   net
       realizable  value.  The Partnership follows  a  policy  of
       providing  an  allowance for doubtful  accounts;  however,
       based on historical experience, and its evaluation of  the
       current status of receivables, the Partnership is  of  the
       belief  that  such  accounts will be  collectible  in  all
       material  respects and thus an allowance is not necessary.
       Accounts  are considered past due if payment is  not  made
       on  a  timely  basis in accordance with the  Partnership's
       credit  terms.   Receivables considered uncollectible  are
       written off.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(2)  Summary of Significant Accounting Policies - (Continued)

     Income Taxes

       The  income or loss of the Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns  of the partners.  In general, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.

       The   tax   return   and  the  amount   of   distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination    results   in   changes   to   distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.

     Real Estate

       The  Partnership's real estate is leased under triple  net
       leases,  classified  as  operating  leases.   The   leases
       provide  for  base  annual  rental  payments  payable   in
       monthly  installments.  The Partnership recognizes  rental
       revenue  according to the terms of the individual  leases.
       For  leases  that  contain stated  rental  increases,  the
       increases  are  recognized in the year in which  they  are
       effective.   Contingent  rental  payments  are  recognized
       when  the  contingencies on which the payments  are  based
       are  satisfied  and the rental payments become  due  under
       the terms of the leases.

       Real  estate is recorded at estimated net realizable value
       at  December  31,  2008 and 2007.  Through  September  30,
       2007, the Partnership compared the carrying amount of  its
       properties  to  the estimated probability-weighted  future
       cash  flows expected to result from the property  and  its
       eventual  disposition.  If the sum of the expected  future
       cash  flows  is  less  than the  carrying  amount  of  the
       property,  the  Partnership recognizes an impairment  loss
       by  the  amount  by  which  the  carrying  amount  of  the
       property exceeds the fair value of the property.

       Through  September 30, 2007, the buildings  and  equipment
       of  the  Partnership were depreciated using the  straight-
       line  method  for  financial reporting purposes  based  on
       estimated   useful  lives  of  30  years  and   10   years
       respectively.

       In  accordance  with  Statement  of  Financial  Accounting
       Standards  No.  144,  Accounting  for  the  Impairment  or
       Disposal  of Long-Lived Assets, upon complete disposal  of
       a  property or classification of a property as Real Estate
       Held  for  Sale,  the Partnership includes  the  operating
       results   and   sale  of  the  property  in   discontinued
       operations.   In  addition,  the Partnership  reclassifies
       the  prior  periods' operating results of the property  to
       discontinued operations.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Partnership accounts for properties owned as tenants-
       in-common with affiliated entities and/or unrelated  third
       parties  using  the  proportionate  consolidation  method.
       Each  tenant-in-common owns a separate, undivided interest
       in  the properties.  Any tenant-in-common that holds  more
       than  a  50% interest does not control decisions over  the
       other    tenant-in-common   interests.    The    financial
       statements  reflect  only  this  Partnership's  percentage
       share  of  the  properties' land, building and  equipment,
       liabilities, revenues and expenses.

       The  Partnership's properties are subject to environmental
       laws  and  regulations  adopted  by  various  governmental
       entities  in the jurisdiction in which the properties  are
       located.   These  laws could require  the  Partnership  to
       investigate  and remediate the effects of the  release  or
       disposal  of  hazardous materials at  these  locations  if
       found.  For each property, an environmental assessment  is
       completed  prior to acquisition.  In addition,  the  lease
       agreements  typically  strictly prohibit  the  production,
       handling, or storage of hazardous materials (except  where
       incidental  to  the  tenant's  business  such  as  use  of
       cleaning  supplies)  in violation  of  applicable  law  to
       restrict  environmental and other  damage.   Environmental
       liabilities  are  recorded  when  it  is  determined   the
       liability  is  probable and the costs  can  reasonably  be
       estimated.   There were no environmental issues  noted  or
       liabilities recorded at December 31, 2008 and 2007.

     Recently Issued Accounting Pronouncements

       Management  has  reviewed recently  issued,  but  not  yet
       effective,  accounting pronouncements and does not  expect
       the  implementation  of  these pronouncements  to  have  a
       significant   effect   on   the  Partnership's   financial
       statements.

(3)  Related Party Transactions -

     The  Partnership  owns a 43.9634% interest in  a  Tumbleweed
     restaurant.   The remaining interests in this  property  are
     owned  by  AEI  Net Lease Income & Growth Fund  XIX  Limited
     Partnership,  an  affiliate  of  the  Partnership,  and   an
     unrelated third party.  The Partnership owned a 50% interest
     in an Eckerd drug store.  AEI Net Lease Income & Growth Fund
     XIX  Limited  Partnership  owned  a  50%  interest  in  this
     property  until  the  interest was  sold,  in  a  series  of
     transactions, to unrelated third parties in 2007 and 2008.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(3)  Related Party Transactions - (Continued)

     AEI   and  AFM  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:

                                         Total Incurred by the Partnership
                                          for the Years Ended December 31

                                                           2008        2007
a.AEI and AFM are reimbursed for all costs incurred in
  connection with managing the Partnership's operations,
  maintaining the Partnership's books and communicating
  with the Limited Partners.                            $  66,555  $  99,887
                                                         ========   ========
b.AEI and AFM are reimbursed for all direct expenses they
  have paid on the Partnership's behalf to third parties
  relating to Partnership administration and property
  management.  These expenses included printing costs,
  legal and filing fees, direct administrative costs,
  outside  audit  costs,  taxes, insurance and other
  property  costs.                                      $  51,224  $  58,774
                                                         ========   ========
c.AEI is reimbursed for all costs incurred in connection
  with the sale of property.                            $  54,473  $ 112,639
                                                         ========   ========

     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance due for the services described in 3a, b and c.  This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.

(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     under  triple  net  leases, classified as operating  leases.
     Under a triple net lease, the tenant is responsible for  all
     real  estate  taxes,  insurance,  maintenance,  repairs  and
     operating  expenses  for  the property.   At  the  time  the
     properties were acquired, the remaining primary lease  terms
     varied  from 15 to 20 years.  The leases provide the tenants
     with  two to three five-year renewal options subject to  the
     same terms and conditions as the primary term.

     The  Partnership's properties are commercial,  single-tenant
     buildings.  The Taco Cabana restaurant in San Antonio, Texas
     was  constructed in 1984, renovated in 1991 and acquired  by
     the  Partnership after the renovation.  The  Tractor  Supply
     Company   store   and  Champps  Americana  restaurant   were
     constructed   and   acquired  in  1996.    The   Fuddruckers
     restaurant  was  constructed  and  acquired  in  1997.   The
     Tumbleweed restaurant was constructed and acquired in  1998.
     There   have  been  no  costs  capitalized  as  improvements
     subsequent to the acquisitions.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(4)  Investments in Real Estate - (Continued)

     Effective  with  the  decision to  liquidate,  the  carrying
     amounts  of assets and liabilities were adjusted from  their
     historical bases to the amounts of cash expected from  their
     realization  and settlement.  Because of the expected  short
     liquidation period, the effects of discounting would not  be
     significant  and have been ignored.  At December  31,  2007,
     the  estimated real estate values were based upon comparable
     sales  of  similar  properties, a  subsequent  sale  of  one
     property  and a signed purchase agreement for one  property.
     The  adjustment  increased Investments  in  Real  Estate  by
     $2,529,841.  At December 31, 2008, the estimated real estate
     values   were  based  upon  comparable  sales   of   similar
     properties.    It  is reasonably possible that  the  amounts
     expected  to  be  realized  in the liquidation  process  may
     change in the near term.

     The historical cost and related accumulated depreciation and
     estimated  net  realizable  values  of  the  properties   at
     December 31, 2008 are as follows:

                            Historical Cost Basis            Liquidation Basis
                          Buildings and           Accumulated   Net Realizable
Property             Land   Equipment     Total   Depreciation     Value

Taco Cabana,
 San Antonio, TX  $  61,004 $  46,929 $ 107,933   $ 25,041     $  176,000
Tractor Supply Company,
 Bristol, VA         31,092    65,673    96,765     26,758        125,000
Champps Americana,
 Columbus, OH         4,373     8,611    12,984      3,352         18,000
Fuddruckers,
 Thornton, CO         3,383     7,310    10,693      2,572         15,400
Tumbleweed,
 Chillicothe, OH    229,387   331,225   560,612    104,814        740,000
                   --------  --------  --------   --------      ---------
                  $ 329,239 $ 459,748 $ 788,987  $ 162,537     $1,074,400
                   ========  ========  ========   ========      =========

     The  Partnership owns a 9.3699% interest in  a  Taco  Cabana
     restaurant  in San Antonio, Texas, a 7.5158% interest  in  a
     Tractor Supply Company store, a .5061% interest in a Champps
     Americana  restaurant and a .7606% interest in a Fuddruckers
     restaurant.  The remaining interests in these properties are
     owned by unrelated third parties, who own the property  with
     the Partnership as tenants-in-common.

     During  the first nine months of 2007, the Partnership  sold
     38.8529%  of the Eckerd drug store in Auburn, New  York,  in
     nine separate transactions, to unrelated third parties.  The
     Partnership  received total net sale proceeds of $1,947,905,
     which  resulted  in a net gain of $252,126.   The  cost  and
     related  accumulated depreciation of the interests sold  was
     $1,777,236 and $81,457, respectively.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(4)  Investments in Real Estate - (Continued)

     During the fourth quarter of 2007, the Partnership sold  its
     remaining  4.2781%  interest in the  Eckerd  drug  store  in
     Auburn,   New  York  to  an  unrelated  third  party.    The
     Partnership  received net sale proceeds  of  $212,731.   The
     cost  and  related accumulated depreciation of the  interest
     sold was $195,691 and $8,969, respectively.

     On  June 30, 2007, the Lease term expired for the KinderCare
     daycare  center  in  Blue  Springs,  Missouri.   The  tenant
     reviewed their operations at the property and decided not to
     enter  into  an agreement to extend the term of  the  Lease.
     The  Partnership listed the property for sale  with  a  real
     estate  broker in the Blue Springs area.  While the property
     was  vacant, the Partnership is responsible for real  estate
     taxes  and  other  costs  associated  with  maintaining  the
     property.

     On  July  23,  2008,  the Partnership  sold  the  KinderCare
     daycare  center  in Blue Springs, Missouri to  an  unrelated
     third party.  The Partnership received net sale proceeds  of
     $549,943.  At the time of sale, the estimated net realizable
     value was $550,000.

     On  January  25,  2008, the Partnership sold the  KinderCare
     daycare  center  in Westerville, Ohio to an unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $1,423,596.   At  the  time  of  sale,  the  estimated   net
     realizable value was $1,415,000.

     On  March  12,  2008,  the Partnership sold  the  KinderCare
     daycare  center  in  Columbus, Ohio to  an  unrelated  third
     party.   The  Partnership  received  net  sale  proceeds  of
     $1,628,834.   At  the  time  of  sale,  the  estimated   net
     realizable value was $1,617,000.

     During  2008 and 2007, the Partnership distributed net  sale
     proceeds  of  $3,574,230 and $1,857,931 to the  Limited  and
     General  Partners as part of their quarterly  distributions,
     which  represented a return of capital of $186.66 and $97.03
     per Limited Partnership Unit, respectively.

     For  properties owned as of December 31, 2008,  the  minimum
     future rent payments required by the leases are as follows:

                       2009           $  106,245
                       2010               97,680
                       2011               84,257
                       2012               71,517
                       2013               65,829
                       Thereafter          9,967
                                       ---------
                                      $  435,495
                                       =========

     There were no contingent rents recognized in 2008 and 2007.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(5)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:

      Tenants                          Industry           2008        2007

     Tumbleweed, Inc.                  Restaurant      $  67,029  $  65,715
     KinderCare Learning Centers, Inc. Child Care         38,517    346,956
     Texas Taco Cabana L.P.            Restaurant         21,409        N/A
     Eckerd Corporation                Retail                N/A     65,842
                                                        --------   --------
     Aggregate rent revenue of major tenants           $ 126,955  $ 478,513
                                                        ========   ========
     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                       89%        93%
                                                        ========   ========

(6)  Partners' Capital -

     For  the  years  ended  December  31,  2008  and  2007,  the
     Partnership   declared  distributions  of   $3,621,509   and
     $2,281,080,  respectively.   The Limited  Partners  received
     distributions of $3,585,294 and $2,258,269 and  the  General
     Partners  received distributions of $36,215 and $22,811  for
     the    years,    respectively.    The   Limited    Partners'
     distributions  represent  $189.13 and  $119.13  per  Limited
     Partnership  Unit outstanding using 18,957 weighted  average
     Units in 2008 and 2007.

     As  part  of  the  Limited  Partner distributions  discussed
     above,  the  Partnership distributed net  sale  proceeds  of
     $3,538,488  and  $1,839,352 in 2008 and 2007,  respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.

     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $54.41 per original $1,000 invested.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                   DECEMBER 31, 2008 AND 2007

(7)  Income Taxes -

     With  the  change in the Partnership's basis  of  accounting
     from  the  going  concern  basis to the  liquidation  basis,
     effective October 1, 2007, the Partnership no longer reports
     Net   Income   after  this  date.   The   following   is   a
     reconciliation   of  net  income  for  financial   reporting
     purposes  to income reported for federal income tax purposes
     for the years ended December 31:
                                                    2008           2007
     Net Income for Financial Reporting
      Purposes - Going Concern Basis            $        0     $  541,789

     Decrease in Net Assets in Liquidation
      Before Adjustment                            (70,540)    (1,599,221)

     Liquidation Basis of Accounting Not
       Recognized  for Tax Reporting Purposes    2,220,083      1,696,731

     Depreciation for Tax Purposes Over
       Depreciation  for Financial Reporting
       Purposes                                    (29,485)       (27,809)

     Income Accrued for Tax Purposes Under
       Income  for  Financial Reporting Purposes   (21,945)       (11,297)

     Gain on Sale of Real Estate for Tax Purposes
       Over (Under) Gain for Financial Reporting
       Purposes                                    (69,730)           632
                                                 ----------     ----------
           Taxable Income to Partners           $2,028,383     $  600,825
                                                 ==========     ==========

     The   following  is  a  reconciliation  of  Net  Assets   in
     Liquidation  for financial reporting purposes  to  Partners'
     Capital  reported  for federal income tax purposes  for  the
     years ended December 31:
                                                      2008          2007
     Net Assets in Liquidation / Partners'
      Capital for Financial Reporting Purposes  $1,851,073     $5,404,929

     Adjusted Tax Basis of Investments in Real Estate
      Under Net Investments in Real Estate
      for Financial Reporting Purposes            (440,888)    (2,423,564)

     Income Accrued for Tax Purposes Over
      Income for Financial Reporting Purposes            0         21,945

     Syndication Costs Treated as Reduction
      of Capital for Financial Reporting
      Purposes                                   3,336,442      3,336,442
                                                 ----------     ----------
            Partners'Capital for Tax
             Reporting Purposes                 $4,746,627     $6,339,752
                                                 ==========     ==========

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
         ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.

ITEM 9AT.CONTROLS AND PROCEDURES.

       (a)  Disclosure Controls and Procedures.

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the  Managing  General Partner of the Partnership  evaluated  the
effectiveness  of  the  design and operation  of  our  disclosure
controls  and procedures (as defined in Rule 13a-15(e) under  the
Securities  Exchange  Act of 1934 (the "Exchange  Act")).   Based
upon  that evaluation, the President and Chief Financial  Officer
of  the Managing General Partner concluded that, as of the end of
the  period  covered by this report, our disclosure controls  and
procedures  were effective in ensuring that information  required
to be disclosed by us in the reports that we file or submit under
the  Exchange Act is recorded, processed, summarized and reported
within  the time periods specified in applicable rules and  forms
and  that  such  information is accumulated and  communicated  to
management,  including the President and Chief Financial  Officer
of  the  Managing General Partner, in a manner that allows timely
decisions regarding required disclosure.

       (b)  Internal Control Over Financial Reporting.

       (i) Management's Report on Internal Control Over Financial
Reporting.  The Managing General Partner, through its management,
is responsible for establishing and maintaining adequate internal
control  over  our financial reporting, as defined in  Rule  13a-
15(f) under the Exchange Act, and for performing an assessment of
the   effectiveness  of  our  internal  control  over   financial
reporting  as  of  December  31,  2008.   Internal  control  over
financial  reporting is a process designed to provide  reasonable
assurance  regarding the reliability of financial  reporting  and
the preparation of financial statements for external purposes  in
accordance  with  generally accepted accounting principles.   Our
system  of  internal  control over financial  reporting  includes
those policies and procedures that (i) pertain to the maintenance
of  records  that,  in reasonable detail, accurately  and  fairly
reflect  the transactions and dispositions of the assets  of  the
Partnership;  (ii) provide reasonable assurance that transactions
are  recorded  as  necessary to permit preparation  of  financial
statements  in  accordance  with  generally  accepted  accounting
principles, and that receipts and expenditures of the Partnership
are  being  made  only  in  accordance  with  authorizations   of
management  of  the Managing General Partner; and  (iii)  provide
reasonable assurance regarding prevention or timely detection  of
unauthorized   acquisition,   use,   or   disposition   of    the
Partnership's  assets that could have a material  effect  on  the
financial statements.

        Management  of the Managing General Partner performed  an
assessment  of  the  effectiveness of our internal  control  over
financial  reporting as of December 31, 2008 based upon  criteria
in  Internal Control-Integrated Framework issued by the Committee
of  Sponsoring Organizations of the Treadway Commission ("COSO").
Based  on  our  assessment, management of  the  Managing  General
Partner  determined  that  our internal  control  over  financial
reporting  was  effective as of December 31, 2008  based  on  the
criteria in Internal Control-Integrated Framework issued  by  the
COSO.


ITEM 9AT.CONTROLS AND PROCEDURES.  (Continued)

        This annual report does not include an attestation report
of  our  registered  public accounting  firm  regarding  internal
control  over financial reporting.  Management's report  was  not
subject  to attestation by our registered public accounting  firm
pursuant  to  temporary  rules  of the  Securities  and  Exchange
Commission that permit us to provide only management's report  in
this annual report.

         (ii)    Changes  in  Internal  Control  Over   Financial
Reporting.  During the most recent period covered by this report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our internal control over financial reporting.

ITEM 9B.  OTHER INFORMATION.

       None.


                            PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
manage  and  control the Partnership's affairs and  have  general
responsibility  and  the  ultimate  authority  in   all   matters
affecting  the Partnership's business.  The General Partners  are
AEI  Fund  Management  XVIII, Inc. (AFM),  the  Managing  General
Partner,   and  Robert  P.  Johnson,  Chief  Executive   Officer,
President  and  sole  director  of AFM,  the  Individual  General
Partner.   AFM  is  a  wholly  owned subsidiary  of  AEI  Capital
Corporation  of  which  Mr. Johnson is the majority  shareholder.
AFM  has only one senior financial executive, its Chief Financial
Officer.   The  Chief Financial Officer reports directly  to  Mr.
Johnson  and  is  accountable for his  actions  to  Mr.  Johnson.
Although Mr. Johnson and AFM require that all of their personnel,
including  the  Chief  Financial Officer, engage  in  honest  and
ethical  conduct,  ensure  full,  fair,  accurate,  timely,   and
understandable    disclosure,   comply   with   all    applicable
governmental  laws,  rules and regulations,  and  report  to  Mr.
Johnson   any  deviation  from  these  principles,  because   the
organization  is  composed of only approximately 35  individuals,
because  the  management of a partnership by an entity  that  has
different  interests in distributions and income  than  investors
involves numerous conflicts of interest that must be resolved  on
a  daily  basis, and because the ultimate decision maker  in  all
instances  is Mr. Johnson, AFM has not adopted a formal  code  of
conduct.   Instead,  the materials pursuant  to  which  investors
purchase Units disclose these conflicts of interest in detail and
Mr.  Johnson,  as  the  CEO and sole director  of  AFM,  resolves
conflicts  to  the  best  of  his ability,  consistent  with  his
fiduciary obligations to AFM and the fiduciary obligations of AFM
to  the  Partnership.  The director and officers of  AFM  are  as
follows:

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
         (Continued)

        Robert  P.  Johnson, age 64, is Chief Executive  Officer,
President  and  sole director and has held these positions  since
the  formation of AFM in September 1988, and has been elected  to
continue  in these positions until December 2009.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing in limited partnership  investments.   In
that capacity, he has been involved in the development, analysis,
marketing   and  management  of  public  and  private  investment
programs investing in net lease properties as well as public  and
private  investment  programs investing  in  energy  development.
Since 1971, Mr. Johnson has been the president, a director and  a
registered principal of AEI Securities, Inc., which is registered
with  the SEC as a securities broker-dealer, is a member  of  the
Financial Industry Regulatory Authority (FINRA) and is  a  member
of  the  Security Investors Protection Corporation  (SIPC).   Mr.
Johnson   has  been  president,  a  director  and  the  principal
shareholder   of  AEI  Fund  Management,  Inc.,  a  real   estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in ten limited partnerships and a managing member in five LLCs.

        Patrick  W.  Keene,  age 49, is Chief Financial  Officer,
Treasurer  and  Secretary  and has  held  these  positions  since
January  22,  2003  and  has been elected to  continue  in  these
positions  until December 2009.  Mr. Keene has been  employed  by
AEI  Fund  Management, Inc. and affiliated entities  since  1987.
Prior  to being elected to the positions above, he was Controller
of  the various entities.  From 1982 to 1986, Mr. Keene was  with
KPMG  Peat  Marwick  Certified Public Accountants,  first  as  an
auditor and later as a tax manager.  Mr. Keene is responsible for
all accounting functions of AFM and the registrant.

       Since Mr. Johnson serves as the Individual General Partner
of  the Partnership, as well as the sole director of AFM, all  of
the  duties  that  might be assigned to an  audit  committee  are
assigned  to Mr. Johnson.  Mr. Johnson is not an audit  committee
financial expert, as defined.  As an officer and majority  owner,
through  a parent company, of AFM, and as the Individual  General
Partner, Mr. Johnson is not a "disinterested director" and may be
subject to a number of conflicts of interests in his capacity  as
sole director of AFM.

        Before the independent auditors are engaged, Mr. Johnson,
as the sole director of AFM, approves all audit-related fees, and
all permissible nonaudit fees, for services of our auditors.

Section 16(a) Beneficial Ownership Reporting Compliance

        Under federal securities laws, the directors and officers
of  the  General  Partner of the Partnership, and any  beneficial
owner  of  more than 10% of a class of equity securities  of  the
Partnership,  are  required  to report  their  ownership  of  the
Partnership's equity securities and any changes in such ownership
to  the  Securities  and Exchange Commission (the  "Commission").
Specific due dates for these reports have been established by the
Commission, and the Partnership is required to disclose  in  this
Annual  Report on 10-K any delinquent filing of such reports  and
any  failure  to file such reports during the fiscal  year  ended
December  31, 2008.  Based upon information provided by  officers
and directors of the General Partner, all officers, directors and
10% owners filed all reports on a timely basis in the 2008 fiscal
year.

ITEM 11.  EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative, property management and
property  sales services.  The amount and nature of such payments
are detailed in Item 13 of this annual report on Form 10-K.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February 28, 2009:

     Name and Address                   Number of     Percent
   of Beneficial Owner                  Units Held    of Class

   AEI Fund Management XVIII, Inc.          0          0.00%
   Robert P. Johnson                        5          0.03%
   Patrick W. Keene                         0          0.00%

   Address for all:
   1300 Wells Fargo Place
   30 East 7th Street, St. Paul, Minnesota 55101

The  persons  set forth in the preceding table hold  sole  voting
power  and power of disposition with respect to all of the  Units
set forth opposite their names.  The General Partners know of  no
holders of more than 5% of the outstanding Units.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.

        The  registrant,  AFM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.   Reference  is  made to  Note  3  of  the  Financial
Statements,   as  presented,  and  is  incorporated   herein   by
reference,  for  details of related party  transactions  for  the
years ended December 31, 2008 and 2007.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)

        Neither the registrant, nor the Managing General  Partner
of  the  registrant, has a board of directors consisting  of  any
members who are "independent."  The sole director of the Managing
General  Partner,  Robert  P. Johnson,  is  also  the  Individual
General  Partner  of the registrant, and is the  Chief  Executive
Officer,  and  indirectly the principal owner,  of  the  Managing
General  Partner.  Accordingly, there is no disinterested  board,
or   other   functioning   body,  that  reviews   related   party
transactions, or the transactions between the registrant and  the
General  Partners,  except as performed in  connection  with  the
audit of its financial statements.

        The  limitations  included in the  Partnership  Agreement
require   that  the  cumulative  reimbursements  to  the  General
Partners  and  their affiliates for administrative  expenses  not
allowed under the NASAA Guidelines ("Guidelines") will not exceed
the  sum of (i) the front-end fees allowed by the Guidelines less
the  front-end fees paid by the Partnership, (ii) the  cumulative
property management fees allowed by the Guidelines but not  paid,
(iii)  any real estate commission allowed by the Guidelines,  and
(iv)  10%  of  Net  Cash  Flow less the Net  Cash  Flow  actually
distributed to the General Partners.  The administrative expenses
not  allowed under the Guidelines include a controlling  person's
salary  and  fringe  benefits,  rent  and  depreciation.   As  of
December  31, 2008, the cumulative reimbursements to the  General
Partners and their affiliates did not exceed those amounts.

        The following table sets forth the forms of compensation,
distributions  and cost reimbursements paid by the registrant  to
the  General Partners or their Affiliates in connection with  the
operation  of  the Fund and its properties for  the  period  from
inception through December 31, 2008.
                                                          Amount Incurred
Person or Entity                                           From Inception
 Receiving                    Form and Method         (September 20, 1988) to
Compensation                  of Compensation            December 31, 2008

AEI Securities, Inc.  Selling Commissions equal to 7% of       $2,278,305
                      proceeds plus a 3% nonaccountable
                      expense allowance, most of which
                      was reallowed to Participating
                      Dealers.

General Partners and  Reimbursement at Cost for other          $1,064,137
Affiliates            Organization and Offering Costs.

General Partners and  Reimbursement at Cost for all            $  642,892
Affiliates            Acquisition Expenses.

General Partners and  Reimbursement at Cost for all            $4,351,267
Affiliates            Administrative Expenses attributable
                      to the Fund, including all
                      expenses related to management of the
                      Fund's properties  and  all other
                      transfer   agency, reporting,
                      partner relations and other administrative
                      functions.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND
         DIRECTOR INDEPENDENCE.  (Continued)

                                                          Amount Incurred
Person or Entity                                           From Inception
 Receiving                    Form and Method         (September 20, 1988) to
Compensation                  of Compensation            December 31, 2008

General Partners and  Reimbursement at Cost for all expenses   $1,084,421
Affiliates            related to the disposition of the Fund's
                      properties.

General Partners      1% of Net Cash Flow in any fiscal year   $  268,062
                      until the Limited Partners have received
                      annual, non-cumulative distributions of
                      Net Cash Flow  equal to 10% of their
                      Adjusted Capital Contributions and
                      10% of any remaining Net Cash Flow in such
                      fiscal year.

General Partners      15%  of distributions of Net Proceeds    $  219,779
                      of Sale other than distributions
                      necessary to restore Adjusted Capital
                      Contributions and provide a 6% cumulative
                      return to Limited  Partners.  The General
                      Partners  will receive only 1% of
                      distributions of Net Proceeds of Sale
                      until Limited Partners have received an
                      amount equal to (a) their Adjusted
                      Capital Contributions,  plus (b) an
                      amount  equal  to 14% of their Adjusted
                      Capital Contributions per annum,
                      cumulative but not compounded,  less
                      (c) all  previous cash distributions to
                      the Limited Partners.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES.

        The  following  is a summary of the fees  billed  to  the
Partnership  by  Boulay, Heutmaker, Zibell  &  Co.  P.L.L.P.  for
professional  services rendered for the years ended December  31,
2008 and 2007:

     Fee Category                            2008       2007

     Audit Fees                           $   9,800   $  9,850
     Audit-Related Fees                           0          0
     Tax Fees                                     0          0
     All Other Fees                               0          0
                                           ---------   --------
          Total Fees                      $   9,800   $  9,850
                                           =========   ========


ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES.  (Continued)

Audit  Fees  - Consists of fees billed for professional  services
rendered  for  the  audit of the Partnership's  annual  financial
statements   and  review  of  the  interim  financial  statements
included  in  quarterly reports, and services that  are  normally
provided   by  Boulay,  Heutmaker,  Zibell  &  Co.  P.L.L.P.   in
connection with statutory and regulatory filings or engagements.

Audit-Related  Fees - Consists of fees billed for  assurance  and
related  services that are reasonably related to the  performance
of  the  audit  or  review of financial statements  and  are  not
reported under "Audit Fees." These services include consultations
concerning financial accounting and reporting standards.

Tax  Fees - Consists of fees billed for professional services for
federal and state tax compliance, tax advice and tax planning.

All Other Fees - Consists of fees for products and services other
than the services reported above.


Policy   for  Preapproval  of  Audit  and  Permissible  Non-Audit
Services of Independent Auditors

        Before  the  Independent  Auditors  are  engaged  by  the
Partnership to render audit or non-audit services, the engagement
is  approved  by  Mr.  Johnson acting as the Partnership's  audit
committee.


                             PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

       (a) (1) A list of the financial statements contained
               herein is set forth on page 12.

       (a) (2) Schedules are omitted because of the absence of
               conditions under which they are required or because
               the required information is presented in the
               financial statements or related notes.

       (a) (3) The Exhibits filed in response to Item 601 of
               Regulation S-K are listed below.

    3.1   Certificate  of  Limited Partnership  (incorporated  by
    reference  to  Exhibit  3.1 of the registrant's  Registration
    Statement on Form S-11 filed September 26, 1988 [File No. 33-
    24419]).

    3.2    Limited   Partnership   Agreement   (incorporated   by
    reference  to  Exhibit  3.2 of the registrant's  Registration
    Statement on Form S-11 filed September 26, 1988 [File No. 33-
    24419]).

    10.1  Net  Lease Agreement dated April 13, 1998  between  the
    Partnership, AEI Net Lease Income & Growth Fund  XIX  Limited
    Partnership, Robert P. Johnson, and Tumbleweed, LLC  relating
    to  the  Property  at 1150 North Bridge Street,  Chillicothe,
    Ohio  (incorporated by reference to Exhibit 10.2 of Form  10-
    QSB filed May 15, 1998).

    10.2  First  Amendment to Net Lease Agreement dated  November
    20,  1998  between the Partnership, AEI Net  Lease  Income  &
    Growth  Fund  XIX Limited Partnership, Robert P. Johnson  and
    Tumbleweed,  LLC  relating  to the  Property  at  1150  North
    Bridge  Street, Chillicothe, Ohio (incorporated by  reference
    to Exhibit 10.70 of Form 10-KSB filed March 30, 1999).


ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES.  (Continued)

    10.3  Purchase Agreement dated December 12, 2007 between  the
    Partnership  and  Richard Singer and/or Assigns  relating  to
    the   Property  at  1231  Sunbury  Road,  Westerville,   Ohio
    (incorporated by reference to Exhibit 10.1 of Form 8-K  filed
    January 31, 2008).

    10.4  Assignment  and Assumption of Purchase Agreement  dated
    March  11,  2008 between the Partnership and AEI Real  Estate
    Fund  XVII  Limited Partnership relating to the  Property  at
    4885  Cherry  Bottom  Road, Columbus, Ohio  (incorporated  by
    reference to Exhibit 10.1 of Form 8-K filed March 18, 2008).

    10.5  Purchase  Agreement dated June  13,  2008  between  the
    Partnership  and  Norfleet, LLC relating to the  Property  at
    2100  North  Highway 7, Blue Springs, Missouri  (incorporated
    by  reference  to  Exhibit 10.1 of Form 8-K  filed  July  29,
    2008).

    31.1  Certification  of Chief Executive  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of Chief Financial  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    32    Certification  of  Chief Executive  Officer  and  Chief
    Financial Officer of General Partner pursuant to Section  906
    of the Sarbanes-Oxley Act of 2002.

                           SIGNATURES

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

                          AEI REAL ESTATE FUND XVIII
                          Limited Partnership
                          By:  AEI Fund Management XVIII, Inc.
                               Its Managing General Partner


March 26, 2009            By: /s/ Robert P Johnson
                                  Robert P. Johnson, President and Director
                                  (Principal Executive Officer)

        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                            Title                               Date


/s/ Robert P Johnson  President (Principal Executive  Officer)  March 26, 2009
    Robert P. Johnson and Sole Director of Managing General
                      Partner

/s/Patrick W Keene    Chief Financial Officer  and  Treasurer   March 26, 2009
   Patrick W. Keene   (Principal Accounting Officer)