UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                      Washington, D.C. 20549
                            FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

For the quarterly period ended March 31, 1997 
or
[ ]Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

For the transition period from                 to       

Commission File Number:  0-13227  

USAA Real Estate Income Investments I Limited Partnership   
(Exact name of registrant as specified in its charter)   

California                         74-2325025  
(State or other jurisdiction of    (I.R.S. Employer
incorporation or organization)     Identification No.)

8000 Robert F. McDermott Fwy., IH 10 West, Suite 600,
San Antonio, Texas                          78230-3884
(Address of principal executive offices)    (Zip Code)

(210) 498-7391 
(Registrant's telephone number, including area code)

N/A    
(Former name, former address and former fiscal year, if changed
since last report.)

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.
                                                                  
                                               [X]  Yes  [ ]  No
                             1
<PAGE>

                              PART I


                  Item 1.  Financial Statements
<TABLE>
USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
Condensed Balance Sheets
<CAPTION>

                                                           March 31,
                                                              1997      December 31,
                                                          (Unaudited)       1996
<S>                                                     <C>             <C>
Assets
Rental properties, net                                  $   9,822,011     9,964,683
Temporary investments, at cost which 
approximates market value-
    Money market fund                                       1,004,834       926,892
Cash                                                           41,435        46,204
  Cash and cash equivalents                                 1,046,269       973,096

Accounts receivable                                            51,317        72,175
Deferred charges, at amortized cost, and other             
  assets                                                      376,197       386,325

                                                        $  11,295,794    11,396,279


Liabilities and Partners' Equity
Accounts payable, including amounts due to                    
  affiliates of $36,517 and $27,907                     $      67,244        83,582
Accrued expenses and other liabilities                         70,323        35,634
Security deposits                                              66,616        66,616
         Total liabilities                                    204,183       185,832

Partners' equity:                                            
  General Partner:                                           
    Capital contribution                                        1,000         1,000
    Cumulative net income                                      90,836        89,818
    Cumulative distributions                                 (186,597)     (184,391)
                                                              (94,761)      (93,573)
  Limited Partners (54,610 units):
    Capital contributions, net of offering costs           25,666,700    25,666,700
    Cumulative net income                                   8,992,817     8,892,025
    Cumulative distributions                              (23,473,145)  (23,254,705)
                                                           11,186,372    11,304,020
          Total Partners' equity                           11,091,611    11,210,447
                                                         
                                                        $  11,295,794    11,396,279

See accompanying notes to condensed financial statements.
</TABLE>
                              2
<PAGE>
<TABLE>
USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
Condensed Statements of Income
Three months ended March 31, 1997 and 1996
(Unaudited)
<CAPTION>


                                                              1997          1996
<S>                                                     <C>                 <C>
Income
Rental income                                           $     470,977       392,081
Interest from mortgage loan from affiliate                         --        52,124
Interest income                                                12,942        48,046

     Total income                                             483,919       492,251


Expenses
Direct expenses, $33,783 and $31,086 to
  affiliates (note 1)                                         138,877       130,312
Depreciation                                                  146,243       141,364
General and administrative, $42,153 and
   $36,401 to affiliates (note 1)                              76,866        86,148
Management fee to affiliate (note 1)                           20,123        21,787

     Total expenses                                           382,109       379,611

Net income                                              $     101,810       112,640

Net income per limited partnership unit                 $        1.85          2.04

See accompanying notes to condensed financial statements.
</TABLE>
                             3
<PAGE>
<TABLE>
USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP
Condensed Statements of Cash Flows
Three months ended March 31, 1997 and 1996
(Unaudited)
<CAPTION>

                                                              1997          1996

<S>                                                     <C>              <C>   
Cash flows from operating activities:
  Net income                                            $     101,810       112,640
  Adjustments to reconcile net income to net cash
    provided by operating activities: 
      Depreciation                                            146,243       141,364
      Amortization                                             11,364        11,053
      Decrease in accounts receivable                          20,858        30,502
      Increase in deferred charges and other assets            (1,236)       (9,586)
      Increase in accounts payable, accrued expenses
        and other liabilities                                  18,351       114,928

        Cash provided by operating activities                 297,390       400,901
 
Cash flows from investing activities:
  Additions to rental properties                               (3,571)          --
  Proceeds from mortgage loan receivable                          --      5,440,000

        Cash provided by (used in) investing activities        (3,571)    5,440,000

Cash flows used in financing activities-
  Distributions to Partners                                  (220,646)   (5,165,470)

Net increase in cash and cash equivalents                      73,173       675,431

Cash and cash equivalents at beginning of period              973,096       366,837

Cash and cash equivalents at end of period              $   1,046,269     1,042,268


See accompanying notes to condensed financial statements.
</TABLE>
                             4
<PAGE>
Notes to Condensed Financial Statements
March 31, 1997
(Unaudited)


1. Transactions with Affiliates
  
   A summary of transactions with affiliates follows for the
   three-month period ended March 31, 1997:

                                     Quorum
                         USAA      Real Estate
                     Real Estate    Services
                       Company     Corporation
Reimbursement
    of expenses (a)$      36,996       18,552
Management fees           20,123       15,231
Lease commissions             --        5,157
    Total          $      57,119       38,940


  (a)  Reimbursement of expenses represents amounts paid or
       accrued as reimbursement of expenses incurred on behalf of
       the Partnership at actual cost and does not include any
       mark-up or items normally considered as overhead.


2.  Other

    Reference is made to the financial statements in the Annual
    Report filed as part of the Form 10-K for the year ended
    December 31, 1996 with respect to significant accounting and
    financial reporting policies as well as to other pertinent
    information concerning the Partnership.  Information furnished
    in this report reflects all normal recurring adjustments which
    are, in the opinion of management, necessary for a fair
    presentation of the results for the interim periods presented. 
    Further, the operating results presented for these interim
    periods are not necessarily indicative of the results which may
    occur for the remaining nine months of 1997 or any other future
    period.
 
    The financial information included in this interim report as of
    March 31, 1997 and for the three-month period ended March 31,
    1997 and 1996 has been prepared by management without audit by
    independent certified public accountants who do not express an
    opinion thereon. The Partnership's annual report includes
    audited financial statements.

    Certain 1996 balances have been reclassified to conform to the
    1997 presentation.

                              5

<PAGE>

                              PART I


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


Liquidity and Capital Resources

At March 31, 1997, the Partnership had cash of $41,435 and
temporary investments of $1,004,834.  These funds were held in the
working capital reserve for the payment of obligations of the
Partnership.  Accounts receivable consisted of amounts due from
tenants at both of the Partnership properties.  Deferred charges
and other assets consisted of deferred rent that resulted from
recognition of income as required by generally accepted accounting
principles and lease commissions.  Accounts payable included
amounts due to affiliates for management fees and reimbursable
expenses and to third parties for expenses incurred for operations.
Accrued expenses and other liabilities consisted of property tax
accruals, security deposits and prepaid revenue from tenants.

During the quarter ended March 31, 1997, the Partnership
distributed $218,440 to Limited Partners and $2,206 to the General
Partner for a total of $220,646.  Management evaluates reserves and
the availability of funds for distribution to the Partners on a
continuing basis based on anticipated leasing activity and cash
flows available from the Partnership investments.  As a result of
this analysis, quarterly distributions were increased from $3.00 to
$4.00 per limited partnership unit in the fourth quarter of 1996.

Due to strengthening market conditions surrounding the Partnership
properties and occupancy levels achieved at the properties,
management believes the portfolio is well positioned to sell.  The
Partnership will continue to explore options for possible sale of
both properties.  To date, no formal plan for final disposition of
the properties has been made.

Due to the recent change in tenancy, the name of the Systech
building has been changed to 10505 Sorrento Valley Road.  The
balance of approximately $22,000 of the Partnership's commitment
for the final phase of tenant improvements at this property was
expended in January 1997.  The funding of these improvements was
from the working capital reserve of the Partnership.

Future liquidity is expected to result from cash generated from
operations of the properties, interest on temporary investments and
ultimately through the sale of the properties. 

                              6
<PAGE>
Results of Operations

For the three-month periods ended March 31, 1997 and 1996, income
was generated from rental income from the income producing
properties and interest earned on the funds invested in temporary
investments.  Interest income and participation income earned on
the mortgage loan prior to the January 31, 1996 payoff of the
mortgage loan receivable is also included in income for the three-
month period ended March 31, 1996.  Expenses incurred during the
same periods were associated with operations of the Partnership's
properties and various other costs required for administration of
the Partnership.

The decrease in rental properties from December 31, 1996 to March
31, 1997 was primarily attributable to depreciation on the
Partnership properties.  The decrease in accounts receivable during
the same time period reflects the collection of rents and
reimbursable operating expenses from tenants at both of the
Partnership properties.  Amortization of lease commissions for
10505 Sorrento Valley Road caused the decrease in deferred charges. 
The decrease in accounts payable reflected timing in payment of
tenant improvements at 10505 Sorrento Valley Road.  Accrued
property taxes for both of the Partnership properties accounted for
the increase in accrued expenses and other liabilities.

Rental income increased at both of the Partnership properties from
the three-month period ended March 31, 1996 to the same three-month
period in 1997.  Approximately $26,000 of the increase was
attributable to the increase in occupancy and percentage rent at
Volusia Point Shopping Center.  The balance of the increase of
approximately $53,000 was realized as a result of the increase in
physical occupancy at 10505 Sorrento Valley Road and the receipt
from tenants of reimbursable operating expenses subsequent to their
base year.  The decrease in interest income from the mortgage loan
for the three-month period ended March 31, 1997 was the result of
the January 31, 1996 payoff of the receivable.  Interest income was
higher for the three-month period in 1996 as a result of the
increase in cash and cash equivalents temporarily held by the
Partnership after the payoff of the mortgage loan receivable and
prior to distribution of those proceeds to Limited Partners.

The increase in direct expenses from the three-month period ended
March 31, 1996 to the three-month period ended March 31, 1997
reflected increases in utility and cleaning charges at 10505
Sorrento Valley Road which resulted from the increase in physical
occupancy at the property.  The increase in depreciation during the
same period was due to the addition of tenant improvements at 10505
Sorrento Valley Road, and was partially offset by a decrease in
depreciation at Volusia Point as some tenant improvements were
fully depreciated in 1996.

                            7
<PAGE>
General and administrative expenses decreased from the three-month
period in 1996 to the three-month period in 1997 primarily as a
result of lower postage and audit fees.  Legal expenses were also
higher during the three-month period ended March 31, 1996 due to
the lease restructing that occurred at 10505 Sorrento Valley Road
during that period.  The portfolio management fee is based on cash
flow from operations of the Partnership, adjusted for cash
reserves, and fluctuated accordingly.

                              8
<PAGE>
                             PART II


Item 6.  Exhibits and Reports on Form 8-K

(a)      Exhibit.
                                                       Sequentially
Exhibit                                                Numbered
  No.              Description                           Page

  4   Restated Certificate and Agreement of Limited
      Partnership dated as of October 18, 1984, 
      incorporated as Exhibit A to the Partnership's
      Prospectus dated November 16, 1984, filed
      pursuant to Rule 424(b), Regis. No. 2-92845 
      and incorporated herein by this reference.            __

 27   Financial Data Schedule                               11


(b)   During the quarter ended March 31, 1997, there were no
Current Reports on Form 8-K filed.
 
                              9
<PAGE>
                            FORM 10-Q
                            SIGNATURES

    USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP


Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.




USAA REAL ESTATE INCOME INVESTMENTS I
LIMITED PARTNERSHIP (Registrant)

BY:  USAA INVESTORS I, INC.,
     General Partner



May 12, 1997        BY:  /s/Edward B. Kelley
                         Edward B. Kelley
                         Chairman, President and 
                         Chief Executive Officer



May 12, 1997        BY:  /s/Martha J. Barrow
                         Martha J. Barrow
                         Vice President -
                         Administration and
                         Finance/Treasurer

                             10