SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934

             For the Quarter Ended:  March 31, 2000

                Commission file number:  0-18289


            AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1622463
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

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


                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the 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

         Transitional Small Business Disclosure Format:

                          Yes        No  [X]




         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP


                              INDEX




PART I. Financial Information

 Item 1. Balance Sheet as of March 31, 2000 and December 31, 1999

          Statements for the Periods ended March 31, 2000 and 1999:

             Income

             Cash Flows

             Changes in Partners' Capital

          Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

PART II.Other Information

 Item 1. Legal Proceedings

 Item 2. Changes in Securities

 Item 3. Defaults Upon Senior Securities

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

 Item 5. Other Information

 Item 6. Exhibits and Reports on Form 8-K

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

              MARCH 31, 2000 AND DECEMBER 31, 1999

                           (Unaudited)

                             ASSETS

                                                       2000          1999

CURRENT ASSETS:
  Cash and Cash Equivalents                         $   850,265  $   673,082
  Receivables                                            22,426       19,852
                                                     -----------  -----------
      Total Current Assets                              872,691      692,934
                                                     -----------  -----------
INVESTMENTS IN REAL ESTATE:
  Land                                                5,384,757    5,384,757
  Buildings and Equipment                            10,934,684   10,934,684
  Property Acquisition Costs                                407          407
  Accumulated Depreciation                           (2,554,505)  (2,458,655)
                                                     -----------  -----------
      Net Investments in Real Estate                 13,765,343   13,861,193
                                                     -----------  -----------
           Total  Assets                            $14,638,034  $14,554,127
                                                     ===========  ===========


                         LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.              $    38,264  $     5,516
  Distributions Payable                                 368,295      341,984
  Security Deposit                                       12,500       12,500
  Unearned Rent                                         102,830       17,366
                                                     -----------  -----------
      Total Current Liabilities                         521,889      377,366
                                                     -----------  -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                      (54,303)     (53,696)
  Limited Partners, $1,000 Unit Value;
      30,000 Units authorized; 22,783 Issued;
      20,625 outstanding                             14,170,448   14,230,457
                                                     -----------  -----------
      Total Partners' Capital                        14,116,145   14,176,761
                                                     -----------  -----------
        Total Liabilities and Partners' Capital     $14,638,034  $14,554,127
                                                     ===========  ===========


 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 PERIODS ENDED MARCH 31

                           (Unaudited)


                                                         2000          1999

INCOME:
   Rent                                              $   483,095  $   470,972
   Investment Income                                       8,917        8,478
                                                      -----------  -----------
        Total Income                                     492,012      479,450
                                                      -----------  -----------

EXPENSES:
   Partnership Administration - Affiliates                64,507       63,761
   Partnership Administration and Property
      Management - Unrelated Parties                      11,927       18,043
   Depreciation                                           95,850       99,581
                                                      -----------  -----------
        Total Expenses                                   172,284      181,385
                                                      -----------  -----------

OPERATING INCOME                                         319,728      298,065

GAIN ON SALE OF REAL ESTATE                                    0      146,588
                                                      -----------  -----------
NET INCOME                                           $   319,728  $   444,653
                                                      ===========  ===========

NET INCOME ALLOCATED:
   General Partners                                  $     3,197  $     4,447
   Limited Partners                                      316,531      440,206
                                                      -----------  -----------
                                                     $   319,728  $   444,653
                                                      ===========  ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
 (20,625 and 20,910 weighted average Units
 outstanding in 2000 and 1999, respectively)         $     15.35  $     21.05
                                                      ===========  ===========


 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 PERIODS ENDED MARCH 31

                           (Unaudited)

                                                        2000           1999

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                      $   319,728   $   444,653

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                        95,850        99,581
     Gain on Sale of Real Estate                              0      (146,588)
     (Increase) Decrease in Receivables                  (2,574)       33,988
     Increase in Payable to
        AEI Fund Management, Inc.                        32,748        20,089
     Increase in Unearned Rent                           85,464        59,976
                                                     -----------   -----------
        Total Adjustments                               211,488        67,046
                                                     -----------   -----------
        Net Cash Provided By
        Operating Activities                            531,216       511,699
                                                     -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                                 0      (337,666)
   Proceeds from Sale of Real Estate                          0       423,600
                                                     -----------   -----------
        Net Cash Provided By
        Investing Activities                                  0        85,934
                                                     -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                     26,311       146,717
   Distributions to Partners                           (380,344)     (353,264)
                                                     -----------   -----------
        Net Cash Used For
        Financing Activities                           (354,033)     (206,547)
                                                     -----------   -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS               177,183       391,086

CASH AND CASH EQUIVALENTS, beginning of period          673,082       311,087
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS, end of period            $   850,265   $   702,173
                                                     ===========   ===========


 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 PERIODS ENDED MARCH 31

                           (Unaudited)



                                                                     Limited
                                                                   Partnership
                             General      Limited                     Units
                             Partners     Partners      Total      Outstanding


BALANCE, December 31, 1998  $(49,653)   $14,630,786   $14,581,133    20,910.48

  Distributions               (3,533)      (349,731)     (353,264)

  Net Income                   4,447        440,206       444,653
                             ---------   -----------   -----------  ----------
BALANCE, March 31, 1999     $(48,739)   $14,721,261   $14,672,522    20,910.48
                             =========   ===========   ===========  ==========


BALANCE, December 31, 1999  $(53,696)   $14,230,457   $14,176,761    20,625.48

  Distributions               (3,804)      (376,540)     (380,344)

  Net Income                   3,197        316,531       319,728
                             ---------   -----------   -----------  ----------
BALANCE, March 31, 2000     $(54,303)   $14,170,448   $14,116,145    20,625.48
                             =========   ===========   ===========  ==========


 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

                         MARCH 31, 2000

                           (Unaudited)

(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.

(2)  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
     shareholder of AFM, serves as the Individual General Partner
     and  an  affiliate of AFM, AEI Fund Management, Inc.  (AEI),
     performs the administrative and operating functions for  the
     Partnership.

     The   terms   of  the  Partnership  offering  call   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 ($22,783,050).

     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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(2)  Organization - (Continued)

     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 1% 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.

     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.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Investments in Real Estate -

     In  October,  1999,  the  Partnership  abandoned  a  Rally's
     property  in order to avoid ongoing expenses.  In the  third
     quarter  of  1999, the Partnership recorded  a  real  estate
     impairment of $125,531, which is equal to the net book value
     of  the  abandoned property.  Additionally,  in  the  fourth
     quarter  of  1999, the Partnership recorded  a  real  estate
     impairment of $124,188, which is equal to the net book value
     of   the  remaining  Rally's,  due  to  the  uncertainty  of
     retaining  a  tenant in the property.  The  abandonment  and
     impairment  of  the two properties did not have  a  material
     effect   on   the  Partnership's  cash  flow  or   financial
     statements.

     In  December, 1998, Gulf Coast Restaurants, Inc. (GCR),  the
     lessee  of  the Applebee's restaurant in Slidell, Louisiana,
     filed  for  reorganization.  GCR is continuing to  make  the
     lease  payments to the Partnership under the supervision  of
     the  bankruptcy  court while they develop  a  reorganization
     plan.   If  the Lease is assumed, GCR must comply  with  all
     Lease  terms and any unpaid rent must be paid.  If the Lease
     is  rejected,  GCR will be required to return possession  of
     the property to the Partnership and past due amounts will be
     dismissed  and the Partnership will be responsible  for  re-
     leasing  the  property.  At March 31, 2000, GCR owed  $7,100
     for   rent  due  prior  to  the  date  of  the  filing   for
     reorganization.  An analysis of the operating statements  of
     this property indicate that it is generating profits.  It is
     management's  belief that the Lease will be assumed  by  GCR
     and  that, ultimately, the property will be purchased  by  a
     different operator, approved by the bankruptcy court,  at  a
     price exceeding the property's book value.

     On August 28, 1998, the Partnership purchased a 38% interest
     in  a parcel of land in Centerville, Ohio for $703,376.  The
     land is leased to Americana Dining Corporation (ADC) under a
     Lease  Agreement with a primary term of 20 years and  annual
     rental  payments of $49,236.  Effective December  25,  1998,
     the  annual  rent was increased to $73,854.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership  will advance funds to ADC for the  construction
     of  a  Champps Americana restaurant on the site.  Initially,
     the  Partnership charged interest on the advances at a  rate
     of  7%.  Effective December 25, 1998, the interest rate  was
     increased  to  10.5%.   On  January  27,  1999,  after   the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $154,075.    The
     Partnership's   share  of  the  total   acquisition   costs,
     including  the  cost  of  the land,  were  $1,502,252.   The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund XVII Limited Partnership, AEI Income  &  Growth
     Fund  XXI  Limited Partnership and AEI Income & Growth  Fund
     XXII Limited Partnership, affiliates of the Partnership.

     During  1999,  the  Partnership sold  its  interest  in  the
     HomeTown Buffet restaurant in three separate transactions to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $423,600 which resulted in a total net gain
     of   $146,588.   The  total  cost  and  related  accumulated
     depreciation of the interests sold was $303,733 and $26,721,
     respectively.

     In April, 2000, the Partnership entered into an Agreement to
     sell  the Pasta Fair restaurant in Belleview, Florida to  an
     affiliate  of  the  lessee.   The  gross  proceeds  will  be
     approximately $740,000 which will result in a  net  gain  of
     approximately $36,000.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the three months ended March 31, 2000 and 1999,  the
Partnership  recognized rental income of $483,095  and  $470,972,
respectively.   During the same periods, the  Partnership  earned
investment income of $8,917 and $8,478, respectively.   In  2000,
rental  income increased as a result of additional rent  received
from  one  property  acquisition in 1999 and  rent  increases  on
thirteen  properties.   These increases  in  rental  income  were
partially  offset  by  a decrease in rental  income  due  to  the
property sales discussed below.

        In  October,  1999, the Partnership abandoned  a  Rally's
property  in  order  to  avoid ongoing expenses.   In  the  third
quarter   of  1999,  the  Partnership  recorded  a  real   estate
impairment of $125,531, which is equal to the net book  value  of
the  abandoned property.  Additionally, in the fourth quarter  of
1999,  the  Partnership  recorded a  real  estate  impairment  of
$124,188,  which is equal to the net book value of the  remaining
Rally's,  due  to the uncertainty of retaining a  tenant  in  the
property.   The abandonment and impairment of the two  properties
did not have a material effect on the Partnership's cash flow  or
financial statements.

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR is continuing to make the lease payments
to  the Partnership under the supervision of the bankruptcy court
while  they  develop  a reorganization plan.   If  the  Lease  is
assumed, GCR must comply with all Lease terms and any unpaid rent
must be paid.  If the Lease is rejected, GCR will be required  to
return possession of the property to the Partnership and past due
amounts will be dismissed and the Partnership will be responsible
for  re-leasing the property.  At March 31, 2000, GCR owed $7,100
for  rent due prior to the date of the filing for reorganization.
An analysis of the operating statements of this property indicate
that  it  is generating profits.  It is management's belief  that
the  Lease  will  be  assumed by GCR and  that,  ultimately,  the
property  will be purchased by a different operator, approved  by
the  bankruptcy  court, at a price exceeding the property's  book
value.

       During the three months ended March 31, 2000 and 1999, the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $64,507 and $63,761, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.   During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $11,927 and $18,043, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        As  of March 31, 2000, the Partnership's annualized  cash
distribution  rate  was  7.0%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants due to inflation and real sales growth, will  result
in  an  increase  in rental income over the term of  the  Leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

Liquidity and Capital Resources

        During  the  three  months  ended  March  31,  2000,  the
Partnership's cash balances increased $177,183 as the Partnership
distributed  less  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased from $511,699 in 1999 to $531,216 in 2000 mainly  as  a
result of an increase in income in 2000.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale  of real estate.  During the three  months  ended
March 31, 1999, the Partnership generated cash flow from the sale
of  real  estate  of  $423,600.   During  the  same  period,  the
Partnership  expended  $337,666  to  invest  in  real  properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

        On  August  28,  1998, the Partnership  purchased  a  38%
interest  in a parcel of land in Centerville, Ohio for  $703,376.
The land is leased to Americana Dining Corporation (ADC) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $49,236.  Effective December 25, 1998,  the  annual
rent  was increased to $73,854.  Simultaneously with the purchase
of the land, the Partnership entered into a Development Financing
Agreement under which the Partnership will advance funds  to  ADC
for  the  construction of a Champps Americana restaurant  on  the
site.   Initially,  the  Partnership  charged  interest  on   the
advances  at  a  rate of 7%.  Effective December  25,  1998,  the
interest rate was increased to 10.5%.  On January 27, 1999, after
the development was completed, the Lease Agreement was amended to
require  annual  rental payments of $154,075.  The  Partnership's
share  of the total acquisition costs, including the cost of  the
land,  were $1,502,252.  The remaining interests in the  property
are  owned by AEI Real Estate Fund XVII Limited Partnership,  AEI
Income  &  Growth Fund XXI Limited Partnership and AEI  Income  &
Growth   Fund  XXII  Limited  Partnership,  affiliates   of   the
Partnership.

        During  1999,  the Partnership sold its interest  in  the
HomeTown  Buffet  restaurant in three  separate  transactions  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $423,600 which resulted in  a  total  net  gain  of
$146,588.  The total cost and related accumulated depreciation of
the interests sold was $303,733 and $26,721, respectively.

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate   of   the   lessee.   The  gross  proceeds   will   be
approximately  $740,000  which will  result  in  a  net  gain  of
approximately $36,000.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

       The Partnership's primary use of cash flow is distribution
and  redemption  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.  Redemption  payments
are  paid  to redeeming Partners on a quarterly basis.  Effective
January   1,  2000,  the  Partnership's  distribution  rate   was
increased  from  6.5% to 7.0%.  As a result,  distributions  were
higher  during the first three months of 2000, when  compared  to
the same period in 1999.

        The  Partnership may acquire Units from Limited  Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  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.

        On  April  1, 2000, sixteen Limited Partners  redeemed  a
total of 249.25 Partnership Units for $217,397 in accordance with
the  Partnership Agreement.  The Partnership acquired these Units
using Net Cash Flow from operations.  In prior years, a total  of
141  Limited  Partners  redeemed 2,157.32 Partnership  Units  for
$1,716,908  in  accordance with the Partnership  Agreement.   The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
obligations on both a short-term and long-term basis.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking  statements" within the meaning
of   federal   securities   laws  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, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking statements made by the Partnership, must 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:

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

<BULLET>  the federal income tax consequences of rental
          income,  deductions, gain on sales and other items  and
          the affects of these consequences for investors;

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

<BULLET>  the  success  of  the  General  Partners   of
          locating   properties   with  favorable   risk   return
          characteristics;

<BULLET>  the effect of tenant defaults; and

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


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

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

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 5.OTHER INFORMATION

      None.

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                            Description

          10.1  Purchase Agreement dated  April  27,
                2000  between  the  Partnership  and  Paul
                D'Alto,  Trustee relating to the  property
                at 10401 Highway 441, Belleview, Florida.

          27    Financial Data Schedule  for  period
                ended March 31, 2000.

       b. Reports filed on Form 8-K - None.


                           SIGNATURES

       In accordance with the requirements of the Exchange Act,
the Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


Dated:  May 5, 2000           AEI Real Estate Fund XVIII
                              Limited Partnership
                              By: AEI Fund Management  XVIII, Inc.
                              Its: Managing General Partner



                              By: /s/ Robert P. Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Mark E. Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)