<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

                 ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended September 30, 1996      Commission File No. 0-15940



             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         a Michigan Limited Partnership
             (Exact name of registrant as specified in its charter)


                    MICHIGAN                             38-2593067
        (State or other jurisdiction of               (I.R.S. employer
         incorporation or organization)            identification number)
    


                 280 DAINES STREET, BIRMINGHAM, MICHIGAN 48009
              (Address of principal executive offices) (Zip Code)

                                 (810) 645-9261
              (Registrant's telephone number, including area code)

          Securities registered pursuant to Section 12(g) of the Act:
             $1,000 per unit, units of limited partnership interest





 Indicate by check mark whether the registrant (1) has filed all reports
 required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
 1934 during the preceding 12 months (or for such shorter period that the
 registrant was required to file such reports), and (2) has been subject to
 such filing requirements for the past 90 days.

                            Yes [X]          No [  ]
<PAGE>   2



             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                                     INDEX


                                                          Page       
                                                          ----       
PART I           FINANCIAL INFORMATION                               
                                                                     
  ITEM 1.  FINANCIAL STATEMENTS                                      
                                                                     
           Balance Sheets                                            
           September 30, 1996 (Unaudited) and                        
           December 31, 1995                                3        
                                                                     
           Statements of Income                                      
           Nine months ended September 30, 1996                      
           and 1995 and Three months ended                           
           September 30, 1996 and 1995                      4        
                                                                     
           Statements of Cash Flows                                  
           Nine months ended September 30, 1996                      
           and 1995 (Unaudited)                             5        
                                                                     
           Notes to Financial Statements                             
           September 30, 1996 (Unaudited)                   6        
                                                                     
  ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS                      
           OF FINANCIAL CONDITION AND RESULTS                        
           OF OPERATIONS                                    7        
                                                                     
 PART II          OTHER INFORMATION                                  
                                                                     
  ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                 10       
                                                                     
                                                                     
                                      -2-

<PAGE>   3
             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                                 BALANCE SHEETS


<TABLE>
<CAPTION>
ASSETS                        September 30, 1996  December 31, 1995
                              ------------------  -----------------
                                 (Unaudited)
<S>                                  <C>                <C>
Properties:
  Land                                $5,280,000         $5,280,000
  Buildings And Improvements          22,122,120         22,087,145
  Manufactured Homes                     449,963            412,052
  Furniture And Fixtures                  92,826             98,320
                              ------------------  -----------------
                                      27,944,909         27,877,517
  Less Accumulated                     
    Depreciation                       7,801,964          7,214,093    
                              ------------------  -----------------
                                      20,142,945         20,663,424

Cash And Cash Equivalents                459,235            468,664

Other Assets                             656,524            690,477
                              ------------------  -----------------

Total Assets                         $21,258,704        $21,822,565
                              ------------------  -----------------

<CAPTION>
LIABILITIES                   September 30, 1996  December 31, 1995
                              ------------------  -----------------
                                 (Unaudited)
<S>                                  <C>                <C>
Line of Credit                          $387,800           $343,210
Accounts Payable                         $96,042           $170,213
Other Liabilities                        867,998            973,542
                              ------------------  -----------------

Total Liabilities                     $1,351,840         $1,486,965

Partners' Equity:
  General Partner                       (569,685)          (603,574)
  Class A Limited Partners            11,601,774         12,064,399
  Class B Limited Partners             8,874,775          8,874,775
                              ------------------  -----------------

Total Partners' Equity                19,906,864         20,335,600
                              ------------------  -----------------

Total Liabilities And
  Partners' Equity                   $21,258,704        $21,822,565
                              ------------------  -----------------
</TABLE>

                      See Notes to Financial Statements

                                       3




<PAGE>   4
STATEMENTS OF INCOME (Unaudited)

<TABLE>
<CAPTION>
                                                     NINE MONTHS ENDED               THREE MONTHS ENDED
                                           Sept. 30, 1996     Sept. 30, 1995   Sept. 30, 1996   Sept. 30, 1995
                                           --------------     --------------   --------------   --------------
<S>                                             <C>             <C>                <C>           <C>
Income:
  Rental Income                                 $5,597,288      $5,383,858         $1,869,271    $1,799,089      
  Other                                            204,541         240,253             60,187        67,434      
                                                ----------      ----------         ----------    ----------      
Total Income                                    $5,801,829      $5,624,111         $1,929,458    $1,866,523      
                                                                                                                 
Operating Expenses:                                                                                              
  Administrative Expenses                                                                                        
  (Including $288,915, $280,201, $96,019 And                                                                     
  $93,026 In Property Management Fees Paid                                                                       
  To An Affliate For The Nine and Three                                                                          
  Month Periods Ended Sept. 30, 1996 and                                                                         
  1995, Respectively)                            1,199,577       1,226,072            373,512       416,554      
  Property Taxes                                   613,382         597,657            204,436       197,923      
  Utilities                                        361,837         340,828            115,523       104,293      
  Property Operations                              767,899         655,114            300,816       251,081      
  Depreciation And Amortization                    587,870         576,308            195,956       192,103      
                                                ----------      ----------         ----------    ----------      
                                                                                                                 
Total Operating Expenses                        $3,530,565      $3,395,979         $1,190,243    $1,161,954      
                                                ----------      ----------         ----------    ----------      
                                                                                                                 
Net Income                                      $2,271,264      $2,228,132           $739,215      $704,569      
                                                ----------      ----------         ----------    ----------      
                                                                                                                 
Income Per Limited Partnership Unit:                                                                             
  Class A                                           $52.00          $52.00             $17.00        $17.00      
  Class B                                           $75.00          $75.00             $25.00        $25.00      
                                                                                                                 
Distribution Per Limited Partnership Unit                                                                        
  Class A                                           $75.00          $75.00             $25.00        $25.00      
  Class B                                           $75.00          $75.00             $25.00        $25.00      
                                                                                                                 
Weighted Average Number Of Limited                                                                               
  Partnership Units Outstanding                                                                                  
    Class A                                         20,230          20,230             20,230        20,230      
    Class B                                          9,770           9,770              9,770         9,770      
</TABLE>  

                      See Notes to Financial Statements
                                       4





<PAGE>   5
STATEMENTS OF CASH FLOWS (Unaudited)

<TABLE>
<CAPTION>
                                                          NINE MONTHS ENDED
                                                   Sept. 30, 1996   Sept. 30, 1995
                                                   --------------   --------------
<S>                                                    <C>              <C>
Cash Flows From Operating Activities:
  Net Income (Loss)                                    $2,271,264       $2,228,132

Adjustments To Reconcile Net Income
  (Loss) To Net Cash Provided By
  Operating Activities:
  Depreciation                                            587,870          576,308
(Increase) Decrease In Other Assets From Operations        33,953           34,510
  Increase  (Decrease) In Accounts Payables               (74,171)         (16,746)
  Increase (Decrease) Other Liabilities From             
    Operations                                           (105,544)         (41,737) 
                                                   --------------   --------------

Total Adjustments                                         442,108          552,335
                                                   --------------   --------------

    Net Cash Provided By (Used In)
      Operating Activities                              2,713,372        2,780,467
                                                   --------------   --------------

Cash Flows From Investing Activities:
  Capital Expenditures                                    (67,392)        (176,388)
   Funds From Line of Credit                               44,590                0
                                                   --------------   --------------

    Net Cash Provided By (Used In)
      Investing Activities                                (22,802)        (176,388)
                                                   --------------   --------------

Cash Flows From Financing Activities:
  Distributions To Partners                            (2,700,000)      (2,650,000)
                                                   --------------   --------------

Net Cash Provided By (Used In)
  Financing Activities                                 (2,700,000)      (2,650,000)
                                                   --------------   --------------

Increase (Decrease) In Cash                                (9,430)         (45,921)

Cash, Beginning                                           468,664          373,168
                                                   --------------   --------------

Cash, Ending                                             $459,234         $327,247
                                                   --------------   --------------
</TABLE>


                       See Notes to Financial Statements
                                       5




<PAGE>   6

             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                         NOTES TO FINANCIAL STATEMENTS
                         September 30, 1996 (Unaudited)



1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Presentation:

The balance sheet as of September 30, 1996, the related statements of income
and statements of cash flow for the periods ended September 30, 1996 and 1995
have been prepared by management, pursuant to the rules and regulations of the
Securities and Exchange Commission,  without audit by independent public
accountants.   In the opinion of management, all adjustments (consisting of
only normal recurring accruals) necessary for a fair presentation of such
financial statements have been included.

The financial statements and notes are presented as permitted by the rules and
regulations of the Securities and Exchange Commission for Form 10-Q and do not
contain certain information included in the Company's annual financial
statements and notes, which should be consulted.

2.  PAYMENTS TO AFFILIATES:

<TABLE>
<CAPTION>
                                        NINE MONTHS ENDED                       THREE MONTHS ENDED
                                 SEPT. 30, 1996    SEPT. 30, 1995        SEPT. 30, 1996    SEPT. 30, 1995
                                 --------------  ----------------        --------------    --------------
<S>                                 <C>             <C>                   <C>               <C>
PROPERTY MANAGEMENT FEE
TO UNIPROP, INC.:                    $288,915       $280,201               $96,019            $93,026
</TABLE>





                                      -6-
<PAGE>   7




ITEM 2.

                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capital Resources

The Partnership's capital resources consist primarily of its four manufactured
housing communities.  There have been no significant capital transactions
during the quarter reported.

Liquidity

Partnership liquidity is based upon its investment strategy.  The properties
owned by the Partnership were anticipated to be held for seven to ten years
after their acquisition, although properties may be disposed of later, if, in
the opinion of the General Partner, it is in the best interest of the
Partnership to do so.

On May 1, 1996, the Partnership increased its existing line of credit with
Comerica Bank from $400,000 to $600,000.  Proceeds from the line of credit are
being used to purchase new or used manufactured homes for sale or lease in the
communities owned by the Partnership.  As of September 30, 1996, the
outstanding balance on the line of credit was approximately $387,800.

During the quarters ended September 30, 1996 and 1995, cash generated by
operations was $935,171 and $896,672, respectively.  The increase in cash flow
for the quarter was due to higher average occupancy and higher average rents.
This amount of cash flow provided sufficient funds to distribute $750,000 to
the Limited Partners subsequent to the end of the quarter, providing the
Limited Partners with their annualized 10% preferred return.  The General
Partner  will receive a distribution of $150,000 from cash generated by
operations.  For the same quarter in 1995, the General Partner received
$100,000.

While the Partnership is not required to maintain a working capital reserve,
the Partnership has not distributed all the cash generated from operations in
order to build cash reserves.  For the quarter ended September 30, 1996, the
Partnership added $35,171 to reserves. During the same quarter in 1995, the
Partnership added $46,672 to cash reserves.  The amount placed in reserves is
at the discretion of the General Partner.





                                      -7-
<PAGE>   8




Results of Operations

Overall, as illustrated in the tables below, the four properties enjoyed a
combined average occupancy of 97.1% (1,771/1,824 sites) at the end of September
1996, versus 95.6% a year ago.  The average monthly rent in September 1996 was
approximately $372, or 3.1% more than the $361 average monthly rent in
September 1995.

<TABLE>
<CAPTION>
                           Total     Occupied  Occupancy  Average
                           Capacity  Sites     Rate       Rent
<S>                       <C>        <C>        <C>          <C>        
Aztec Estates              645        610       94.6%        $411       
Kings Manor                314        303       96.5          388       
Old Dutch Farms            293        288       98.3          379       
Park of the Four Seasons   572        570       99.7          318       
                           ---        ---       -----        ----       
                                                                        
Total on 9/30/96:         1,824      1,771      97.1%        $372        
                                                                        
Total on 9/30/95:         1,824      1,743      95.6%        $361        
</TABLE>

During the third quarter of 1996, the Partnership generated gross revenues of
$1,929,458 or 3.4% more than the $1,866,523 generated in the third quarter of
1995.  The net operating income before other non-recurring expenses and
Partnership administration was $1,055,866 or 54.7% of the total revenues,
versus $1,007,389 or 54.1% during the same period in 1995.  For the quarter,
cash flow was $935,171, versus $896,672 reported in 1995.


<TABLE>
<CAPTION>
                                 GROSS           NET OPERATING
                                 REVENUES        INCOME

<S>                             <C>              <C>
Aztec Estates                   $  751,592       $383,887
Kings Manor                        339,140        201,934
Old Dutch Farms                    307,866        178,618
Park of the Four Seasons           527,262        291,428
Partnership Management:              3,598        (21,064)
Other Non Recurring expenses:        -----        (99,631)
                                ----------       --------
Total on 9/30/96:               $1,929,458       $935,171
Total on 9/30/95:               $1,866,523       $896,672

</TABLE>

The properties' operating expenses for the third quarter of 1996 compared to
the same period in 1995, reflect slight increases in wages, marketing expenses,
taxes and legal/professional fees.





                                      -8-
<PAGE>   9




AZTEC ESTATES, in Margate, Florida, reported an occupancy on September 30, 1996
of 94.6% (610/645 sites), versus 96.3% as of September 30, 1995.  The average
rent in the community as of September 30, 1996  was $411, versus $395, an
increase of 4.1% from the same period in 1995.  For the third quarter of 1996,
the net operating income was $383,887, or 6.2% more than the $361,566 reported
for the same period in 1995. The increase in income is the result of higher
average rents.

Improvement and maintenance actions undertaken during the quarter focused on
roof repairs to the community center building, repairs to one of the
maintenance vehicles, and general clean up from the removal of older homes
throughout the community.  Additionally, management replaced the HVAC units in
the pool room and the gate house.


KINGS MANOR, in Fort Lauderdale, Florida, reported an occupancy of 96.5%
(303/314 sites) on September 30, 1996, versus 98.7% as of September 30, 1995.
The average rent in the community as of September 30, 1996 was $388, versus
$372, an increase of 4.3% from the same period in 1995.  For the third quarter
of 1996, the net operating income was $201,934, slightly more than the $201,310
reported during the same period in 1995.

Improvement and maintenance actions undertaken during the quarter involved
repairs to the older street lights throughout the community, renovations to the
community center building, and the replacement of electric pedestals on
homesites where new homes are being placed.

OLD DUTCH FARMS, in Novi Michigan, reported an occupancy of 98.3% (288/293
sites) on September 30, 1996, versus 96.9% as of September 30, 1995.  The
average rent in the community as of September 30, 1996 was $379, versus $369,
an increase of 2.7% from the same period in 1995.  For the third quarter of
1996, the net operating income was $178,618, slightly less than the $183,987
reported for the same period in 1995. The decline in income is due to higher
operating expenses.

Improvement and maintenance actions undertaken during the third quarter focused
on repainting the community center building and the mail boxes.  Also completed
during the third quarter were minor repairs to the sewage treatment facility.

PARK OF THE FOUR SEASONS, in Blaine, Minnesota, reported an occupancy of 99.7%
(570/572 sites) on September 30, 1996 versus 92.3% as of September 30, 1995.
The average rent in the community as of September 30, 1996  was $318, versus
$311, an increase of 2.3% from the same period in 1995.  For the third quarter
of 1996, the net operating income was $291,428, or 11.9% more than the
$260,526 reported for the same period in 1995.  The increase in income is due
to higher occupancy and higher average monthly rent.

Improvement and maintenance actions undertaken during the quarter involved
repainting the maintenance garage and storm shelters, concrete work for new
homes moving into the community, and the asphalt resurfacing of several streets
within the community.





                                      -9-
<PAGE>   10

Due to the strong market demand for manufactured housing in the northern
suburbs of Minneapolis/St. Paul , 18 new residents' homes were moved into Park
of the Four Seasons during the third quarter of 1996.  Since the first of the
year, occupancy at Park of the Four Seasons has increased a total of 48
homesites, or 7.2%. As a result  of the large increase in new homes moving into
the community over the past nine months, the overall appearance of the
community has enhanced significantly. For the first time in ten years,
management has a  waiting list of residents and home dealers who  would like to
move into the community.


MANAGEMENT EXPENSES

Net Partnership management expenses paid during the quarter amounted to
$21,064.  Gross expenses of $24,662 (data processing, accounting and legal
expenses, office supplies and wages to employees of the Partnership) were
partially offset by income of $3,598 generated by interest on the Partnership's
reserves and transfer fees.  The figures for last year's third quarter were
$65,603, $69,071 and $3,468, respectively.


                         PART II - OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS OF FORM 8-K

                (a) Exhibits

                        Exhibit Number        Description
                             27          Financial Data Schedule

                (b) Reports of Form 8-K
                      There were no reports filed on Form 8-K during
                      the three months ended September 30, 1996.





                                      -10-
<PAGE>   11




                                   SIGNATURES

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


                                            Uniprop Manufactured Housing
                                            Communities Income Fund,
                                            A Michigan Limited Partnership

                                        BY: P.I. Associates Limited Partnership,
                                            A Michigan Limited Partnership,
                                            its General Partner

                                        BY: /s/ Paul M. Zlotoff             
                                            ------------------------------------
                                            Paul M. Zlotoff, General Partner

                                        BY: /s/ Gloria A. Koster             
                                            ------------------------------------
                                            Gloria A. Koster, Principal
                                            Financial Officer

Dated: November 14, 1996





                                      -11-
<PAGE>   12



                                 EXHIBIT INDEX


<TABLE>
<CAPTION>
Exhibit
   No.        Description                    Page
--------      -----------                    ----
   <S>       <C>                             <C>
   27        Financial Data Schedule
</TABLE>





                                      -12-