<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

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

For the Quarter Ended March 31, 1998             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)

                                 (248) 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

<TABLE>
<CAPTION>                                                                 

                                                                                                Page
<S>               <C>                                                                           <C>
PART I                              FINANCIAL INFORMATION

  ITEM 1.         FINANCIAL STATEMENTS

                  Balance Sheets
                  March 31, 1998 (Unaudited) and
                  December 31, 1997                                                              3

                  Statements of Income
                  Three months ended March 31, 1998
                  and 1997                                                                       4

                  Statements of Cash Flows
                  Three months ended March 31, 1998
                  and 1997 (Unaudited)                                                           5

                  Notes to Financial Statements
                  March 31, 1998 (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
</TABLE>












                                       -2-

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

<TABLE>
<CAPTION>

ASSETS                                                            MARCH 31, 1998  DECEMBER 31, 1997
                                                                  --------------  -----------------
                                                               (Unaudited)
<S>                                                              <C>                <C>
Properties:
  Land                                                               $ 5,280,000     $ 5,280,000
  Buildings And Improvements                                          23,866,913      23,862,182
  Manufactured Homes                                                     658,226         668,108
  Furniture And Fixtures                                                 120,945         117,847
                                                                      29,926,084      29,928,137

  Less Accumulated Depreciation                                        9,012,795       8,805,795
                                                                     -----------     -----------
                                                                      20,913,289      21,122,342

Cash And Cash Equivalents                                                734,789         649,137
Unamortized Finance Costs                                                775,228         796,547
Other Assets                                                             595,795         484,407
                                                                     -----------     -----------
Total Assets                                                         $23,019,101     $23,052,433
                                                                     ===========     ===========

<CAPTION>
LIABILITIES                                                  MARCH 31, 1998       DECEMBER 31, 1997
                                                             --------------       -----------------                  
                                                               (Unaudited)

Line of Credit                                                      $    434,916    $    358,916
Accounts Payable                                                          72,147         116,066
Mortgage Payable (3)                                                  33,288,462      33,355,940
Other Liabilities                                                      1,009,053         891,073
                                                                    ------------    ------------
Total Liablities                                                    $ 34,804,578    $ 34,721,995

Partners' Equity:
  General Partner                                                     (1,335,054)     (1,261,905)
  Class A Limited Partners                                            (9,552,702)     (9,509,936)
  Class B Limited Partners                                              (897,721)       (897,721)
                                                                    ------------    ------------
Total Partners' Equity                                               (11,785,477)    (11,669,562)
                                                                    ------------    ------------  
Total Liabilities And
  Partners' Equity                                                  $ 23,019,101    $ 23,052,433
                                                                    ============    ============


</TABLE>

                        See Notes to Financial Statements

                                        3

<PAGE>   4

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND
                         A MICHIGAN LIMITED PARTNERSHIP


                              STATEMENTS OF INCOME
                                  (UNAUDITED)
                                                                             
<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED
                                             MARCH 31, 1998        MARCH 31, 1997
                                             --------------        --------------
<S>                                          <C>                     <C>                    
    Income:                                                                                 
      Rental Income                             $1,991,887           $1,937,285             
      Other                                         89,980               70,669             
                                                ----------           ----------                                 
    Total Income                                $2,081,867           $2,007,954             
                                                ==========           ==========                                 
    Operating Expenses:                                                                     
      Administrative Expenses                                                               
      (Including $103,376 And $99,694                                                       
       In Property Management Fees Paid                                                     
      To An Affliate For The  Three  Month                                                  
      Period Ended March 31, 1998 and 1997                                                  
       Respectively)                               479,388              432,153             
      Property Taxes                               207,405              211,145             
      Utilities                                    112,356              111,205             
      Property Operations                          259,633              206,370             
      Depreciation And Amortization                228,500              196,186             
      Interest                                     702,500                    0             
                                                ----------           ----------                                 
                                                                                            
    Total Operating Expenses                    $1,989,782           $1,157,059             
                                                ==========           ==========                                 
    Net Income                                  $   92,085           $  850,895             
                                                ==========           ==========                                 
    Income Per Limited Partnership Unit:                                                    
      Class A                                   $     0.00           $    18.00              
      Class B                                   $     2.00           $    25.00              
                                                                                            
    Distribution Per Limited Partnership Unit                                               
      Class A                                   $     2.00           $ 1,025.00              
      Class B                                   $     2.00           $ 1,025.00              
                                                                                            
    Weighted Average Number Of Limited                                                      
      Partnership Units Outstanding                                                         
        Class A                                     20,230               20,230             
        Class B                                      9,770                9,770             


</TABLE>

                        See Notes to Financial Statements


                                        4

<PAGE>   5
             UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND
                       A  MICHIGAN LIMITED PARTNERSHIP



                            STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                               THREE MONTHS ENDED
                                                         MARCH 31, 1998   MARCH 31, 1997
                                                         --------------   --------------
<S>                                                       <C>             <C>
Cash Flows From Operating Activities:
  Net Income (Loss)                                       $     92,085    $    850,895

Adjustments To Reconcile Net Income
  (Loss) To Net Cash Provided By
  Operating Activities:
  Depreciation                                                 207,000         196,186
  Amortization                                                  21,500               0
(Increase) Decrease In Other Assets From Operations           (111,569)     (1,116,150)
  Increase  (Decrease) In Accounts Payables                    (43,919)        (68,164)
  Increase (Decrease) Other Liabilities From Operations        117,980        (285,837)
                                                          ------------      ----------       
Total Adjustments                                              190,992      (1,273,965)
                                                          ------------      ----------
  Net Cash Provided By (Used In)
      Operating Activities                                     283,077        (423,070)
                                                          ------------      ----------
Cash Flows From Investing Activities:
  Capital Expenditures                                           2,053         (51,613)
  Funds From Line of Credit                                     76,000         104,700
                                                          ------------       ---------
  Net Cash Provided By (Used In)
      Investing Activities                                      78,053          53,087
                                                          ------------       ---------
Cash Flows From Financing Activities:
  Funds from Mortgage                                                0      33,500,000
  Distributions To Partners                                   (208,000)     (1,355,000)
  Return of Capital                                                  0     (30,000,000)
  Principal Payments on Mortgage                               (67,478)              0
                                                          ------------     -----------  
Net Cash Provided By (Used In)
  Financing Activities                                        (275,478)      2,145,000
                                                          ------------     -----------  
Increase (Decrease) In Cash                                     85,652       1,775,017

Cash, Beginning                                                649,137         640,086
                                                          ------------    ------------
Cash, Ending                                              $    734,789    $  2,415,103
                                                          ============    ============                                 
</TABLE>


                        See Notes to Financial Statements
                                        5

<PAGE>   6

              UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND,
                         A MICHIGAN LIMITED PARTNERSHIP

                          NOTES TO FINANCIAL STATEMENTS
                           March 31, 1998 (Unaudited)


1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Presentation:

The balance sheet as of March 31, 1998, the related statements of income and
statements of cash flow for the periods ended March 31, 1998 and 1997 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>

                                                              THREE MONTHS ENDED
                                                     MARCH 31, 1998                     MARCH 31, 1997
                                                     --------------                     --------------

<S>                                                     <C>                               <C>
PROPERTY MANAGEMENT FEE
TO UNIPROP, INC.:                                        $103,376                            $99,694
</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. On March 25, 1997 the Partnership borrowed $33,500,000 from
Nomura Asset Capital Corporation (the "Financing"). It secured the Financing by
placing liens on its four communities. As a result of the Financing, the
Partnership distributed $30,000,000 to the Limited Partners, which represented a
full return of the original capital contributions of $1,000 per unit.

Liquidity

As a result of the Financing, the Partnership's four properties are mortgaged.
At the time of the Financing, the aggregate principal amounts due under the four
mortgage notes was $33,500,000 and the aggregate fair market value of the
Partnership's mortgaged properties was $53,200,000. The Partnership expects to
meet its short-term liquidity needs generally through its working capital
provided by operating activities.

The Partnership's long-term liquidity is based, in part, upon its investment
strategy. The properties owned by the Partnership were anticipated to be held
for seven to ten years after their acquisition. All of the properties have been
owned by the Partnership at least ten years. The General Partner may elect to
have the Partnership own the properties for as long as, if, in the opinion of
the General Partner, it is in the best interest of the Partnership to do so.

The Partnership has a renewable $600,000 line of credit with First of America
Bank. The interest rate, on such line of credit, floats 180 basis points above 1
month LIBOR, which on March 31, 1998 was 5.69%. The sole purpose of the line of
credit is to purchase new and used homes to be used as model homes and offered
for sale within the Partnership's communities. Over the past two years, sales of
the new and used model homes has been growing and the General Partner believes
that continuing the model home program is in the best interest of the
Partnership. As of March 31, 1998, the oustanding balance on the line of credit
was $434,916.

The total funds provided by operations and available for aggregate distributions
to all Partners in UMHCIF during the quarter ended March 31, 1998 amounted to
$320,585. The amount available during the same period in 1997 was $1,047,081.
The significant decrease in cash available for distributions is a result of the
Partnership now having

                                       -7-

<PAGE>   8



mortgage debt, which it did not have in place at the end of the quarter ending
March 31, 1997.

The quarterly Partnership Management Distribution due and paid to the General
Partner for the first quarter was $139,500, or one-fourth of 1.0% of the most
recent appraised value of the properties held by the Partnership. ($55,800,000 x
 .01 = $558,000 / 4 = $139,500)

The cash available after payment of the Partnership Management Distribution
amounted to $181,085. From this amount, the General Partner elected to make a
total distribution of $75,000 for the first quarter of 1998, 80.0% or $60,000
was paid to the Limited Partners and 20.0% or $15,000 was paid to the General
Partner.

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 March 31, 1998, the Partnership
added $106,085 to reserves. During the same quarter in 1997, the Partnership
added $198,681 to cash reserves. The amount placed in reserves is at the
discretion of the General Partner.

Results of Operations

OVERALL, as illustrated in the tables below, the four properties enjoyed a
combined average occupancy of 97.5% (1,779/1,824 sites) at the end of March
1998, versus 97.4% a year ago. The average monthly rent in March 1998 was
approximately $394, or 3.1% more than the $382 average monthly rent in March
1997.

<TABLE>
<CAPTION>
                                            Total             Occupied          Occupancy        Average
                                            Capacity          Sites             Rate             Rent
<S>                                         <C>               <C>               <C>              <C> 
Aztec Estates                               645               622               96.4%            $441
Kings Manor                                 314               303               96.5              422
Old Dutch Farms                             293               285               97.3              393
Park of the Four Seasons                    572               569               99.5              334
                                            ---               ---               ----             ----

Total on 3/31/98:                           1,824             1,779             97.5%            $394
Total on 3/31/97:                           1,824             1,777             97.4%            $382
</TABLE>











                                       -8-

<PAGE>   9



<TABLE>
<CAPTION>

                                                      GROSS REVENUES                        NET OPERATING
                                                                                               INCOME
                                                  3/31/98        3/31/97             3/31/98              3/31/97
<S>                                         <C>               <C>               <C>                    <C>
Aztec Estates                               $     792,047     $   784,746        $    408,877         $   426,951
Kings Manor                                       362,743         342,139             217,620             214,760
Old Dutch Farms                                   337,100         315,840             220,489             205,820
Park of the Four Seasons                          582,587         554,821             379,452             335,020
                                            -------------     -----------        ------------         -----------
                                                2,074,477     $ 1,997,546           1,226,438         $ 1,182,551

Partnership Management:                             7,390          10,408            (115,183)            (95,167)

Other Non Recurring expenses:                       -----           ----              (88,170)            (40,303)

Debt Service                                                                         (702,500)               -0-

Depreciation and Amortization                       -----           ----             (228,500)           (196,186)
                                            -------------     -----------        ------------         -----------

                                            $   2,081,867     $ 2,007,954        $     92,085         $   850,895
                                            =============     ===========        ============         ===========
</TABLE>


COMPARISON OF QUARTER ENDED MARCH 31, 1998 TO QUARTER ENDED MARCH 31, 1997

Gross revenues increased $73,913, or 3.7%, to $2,081,867 in 1998, as compared to
$2,007,954 in 1997. The increase was the result of the increase in average
monthly rents and an increase in overall occupancy. (See table on previous
page.)

Operating expenses increased $832,723, or 72%, to $1,989,782 in 1998, as
compared to $1,157,059 in 1997. The increase was primarily the result of
$702,500 in interest expense for the mortgage debt on the Partnership's
properties, which was not in place as of the end of the first quarter of 1997.
Additionally, partnership management costs increased $20,016, or 21%, to
$115,183 in 1998, as compared to $95,167 in 1997. The increase was the result of
higher Partnership legal expenses. Property operation costs increased $53,263,
or 25.8%, to $259,633 in 1998, as compared to $206,370 in 1997. The increase was
the result of approximately $32,000 in non-recurring expenses at two of the
Partnership's properties.

As a result of the foregoing factors, net income decreased to $92,085 as of
March 31, 1998 from $850,895 as of March 31, 1997.


MANAGEMENT EXPENSES

Net Partnership management expenses paid during the quarter amounted to
$115,183. Gross expenses of $122,573 (data processing, accounting and legal
expenses, office supplies and wages to employees of the Partnership) were
partially offset by income of $7,390 generated by interest on the Partnership's
reserves and transfer fees. The figures for last year's first quarter were
$95,167, $105,575 and $10,408, respectively.

                                       -9-


<PAGE>   10





                           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 March 31, 1998.


                                   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: May 15, 1998







                                      -10-


<PAGE>   11




                                  EXHIBIT INDEX
                                  -------------


<TABLE>
<CAPTION>                                                                 
EXHIBIT NUMBER                              DESCRIPTION                                 PAGE
--------------                              -----------                                 ----
<S>                                <C>                                                 <C>
        27                          Financial Data Schedule

</TABLE>



                                      -11-