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:  September 30, 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 September 30, 2000 and December 31, 1999

          Statements for the Periods ended September 30, 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

            SEPTEMBER 30, 2000 AND DECEMBER 31, 1999

                           (Unaudited)

                             ASSETS

                                                       2000           1999

CURRENT ASSETS:
  Cash and Cash Equivalents                        $   930,689    $   673,082
  Receivables                                           27,829         19,852
                                                    -----------    -----------
      Total Current Assets                             958,518        692,934
                                                    -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                               5,504,366      5,384,757
  Buildings and Equipment                           10,253,416     10,934,684
  Construction in Progress                              19,661              0
  Property Acquisition Costs                                 0            407
  Accumulated Depreciation                          (2,507,554)    (2,458,655)
                                                    -----------    -----------
      Net Investments in Real Estate                13,269,889     13,861,193
                                                    -----------    -----------
           Total  Assets                           $14,228,407    $14,554,127
                                                    ===========    ===========

                       LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.             $    37,651    $     5,516
  Distributions Payable                                368,735        341,984
  Security Deposit                                      12,500         12,500
  Unearned Rent                                         63,883         17,366
                                                    -----------    -----------
      Total Current Liabilities                        482,769        377,366
                                                    -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                     (58,007)       (53,696)
  Limited Partners, $1,000 Unit Value;
    30,000 Units authorized; 22,783 Issued;
    20,317 and 20,625 outstanding in 2000
    and 1999, respectively                          13,803,645     14,230,457
                                                    -----------    -----------
      Total Partners' Capital                       13,745,638     14,176,761
                                                    -----------    -----------
        Total Liabilities and Partners' Capital    $14,228,407    $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 SEPTEMBER 30

                           (Unaudited)


                                Three Months Ended        Nine Months Ended
                              9/30/00       9/30/99     9/30/00       9/30/99

INCOME:
   Rent                      $472,751     $471,589    $1,421,311    $1,426,130
   Investment Income           12,647        5,848        34,685        21,555
                              --------     --------    ----------    ----------
        Total Income          485,398      477,437     1,455,996     1,447,685
                              --------     --------    ----------    ----------

EXPENSES:
   Partnership Administration -
     Affiliates                70,935       55,337       198,772       182,151
   Partnership Administration
     and Property Management -
     Unrelated Parties          8,983        9,716        24,066        32,457
   Depreciation                89,019       99,814       277,881       299,209
   Real Estate Impairment           0      125,531             0       125,531
                              --------     --------    ----------    ----------
        Total Expenses        168,937      290,398       500,719       639,348
                              --------     --------    ----------    ----------

OPERATING INCOME              316,461      187,039       955,277       808,337

GAIN ON SALE OF REAL ESTATE         0            0        26,670       146,588
                              --------     --------    ----------    ----------
NET INCOME                   $316,461     $187,039    $  981,947    $  954,925
                              ========     ========    ==========    ==========

NET INCOME ALLOCATED:
   General Partners          $  3,165     $  1,870    $    9,819    $    9,549
   Limited Partners           313,296      185,169       972,128       945,376
                              --------     --------    ----------    ----------
                             $316,461     $187,039    $  981,947    $  954,925
                              ========     ========    ==========    ==========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (20,317, 20,625, 20,440 and
 20,815 weighted average Units
 outstanding for the periods,
 respectively)               $  15.42     $   8.98    $    47.56    $    45.42
                              ========     ========    ==========    ==========


 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 SEPTEMBER 30

                           (Unaudited)

                                                       2000          1999

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net   Income                                    $   981,947    $   954,925

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                      277,881        299,209
     Real Estate Impairment                                  0        125,531
     Gain on Sale of Real Estate                       (26,670)      (146,588)
     (Increase) Decrease in Receivables                 (7,977)        40,843
     Increase in Payable to
        AEI Fund Management, Inc.                       32,135         17,675
     Increase in Unearned Rent                          46,517         48,624
                                                    -----------    -----------
        Total Adjustments                              321,886        385,294
                                                    -----------    -----------
        Net Cash Provided By
        Operating Activities                         1,303,833      1,340,219
                                                    -----------    -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                         (390,457)      (337,666)
   Proceeds from Sale of Real Estate                   730,550        423,600
                                                    -----------    -----------
        Net Cash Provided By
        Investing Activities                           340,093         85,934
                                                    -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                    26,751        102,810
   Distributions to Partners                        (1,141,041)      (999,241)
   Redemption Payments                                (272,029)      (228,518)
                                                    -----------    -----------
        Net Cash Used For
          Financing Activities                      (1,386,319)    (1,124,949)
                                                    -----------    -----------
NET INCREASE IN CASH
AND CASH EQUIVALENTS                                   257,607        301,204

CASH AND CASH EQUIVALENTS, beginning of period         673,082        311,087
                                                    -----------    -----------
CASH AND CASH EQUIVALENTS, end of period           $   930,689    $   612,291
                                                    ===========    ===========

 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 SEPTEMBER 30

                           (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                (9,993)     (989,248)    (999,241)

  Redemption Payments          (2,285)     (226,233)    (228,518)     (285.00)

  Net Income                    9,549       945,376      954,925
                              --------   -----------  -----------  -----------
BALANCE, September 30, 1999  $(52,382)  $14,360,681  $14,308,299    20,625.48
                              ========   ===========  ===========  ===========


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

  Distributions               (11,410)   (1,129,631)  (1,141,041)

  Redemption Payments          (2,720)     (269,309)    (272,029)     (308.25)

  Net Income                    9,819       972,128      981,947
                              --------   -----------  -----------  -----------
BALANCE, September 30, 2000  $(58,007)  $13,803,645  $13,745,638    20,317.23
                              ========   ===========  ===========  ===========


 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

                       SEPTEMBER 30, 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

                       SEPTEMBER 30, 2000
                           (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

                       SEPTEMBER 30, 2000
                           (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 continued to make the  lease
     payments  to  the Partnership under the supervision  of  the
     bankruptcy court.  A reorganization plan was accepted by the
     bankruptcy court which provides for the Lease to be  assumed
     by  GCR  and assigned to another operator who will  purchase
     the Partnership's share of the property.  The reorganization
     plan  also provides for the Partnership to collect all rents
     outstanding  under the terms of the Lease.  On  October  25,
     2000,  the  sale closed with the Partnership  receiving  net
     sale proceeds of approximately $350,000, which resulted in a
     net gain of approximately $113,000.

     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.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2000
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On  June  30, 2000, the Partnership purchased a 24% interest
     in  a  parcel  of land in Alpharetta, Georgia for  $385,920.
     The  land  is  leased to Razzoo's, Inc. (RI) under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $32,803.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing Agreement under which the Partnership will advance
     funds to RI for the construction of a Razzoo's restaurant on
     the  site.  Through September 30, 2000, the Partnership  had
     advanced  $19,661 for the construction of the  property  and
     was  charging  interest on the advances at a rate  of  8.5%.
     The   Partnership's  share  of  the  total  purchase  price,
     including  the  cost  of  the land,  will  be  approximately
     $919,200.   After  the construction is complete,  the  Lease
     Agreement will be amended to require annual rental  payments
     of  approximately $89,600.  The remaining interests  in  the
     property are owned by AEI Net Lease Income & Growth Fund XIX
     Limited Partnership, AEI Income & Growth Fund 23 LLC and AEI
     Private  Net  Lease  Millennium  Fund  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.  On May 10, 2000, the sale  closed
     with the Partnership receiving net sale proceeds of $730,550
     which  resulted in a net gain of $26,670.  At  the  time  of
     sale,  the  cost  and related accumulated  depreciation  was
     $932,862 and $228,982, respectively.

(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 nine months ended September 30, 2000 and 1999, the
Partnership   recognized   rental  income   of   $1,421,311   and
$1,426,130,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $34,685  and  $21,555,
respectively.   In  2000, rental income  decreased  mainly  as  a
result  of the property sales discussed below.  This decrease  in
rental  income  was offset by additional rent received  from  two
property  acquisitions  in  1999  and  2000,  rent  increases  on
fourteen  properties and additional investment income  earned  on
the net proceeds from the property sales.

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

        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 continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provides  for  the  Lease to be assumed by GCR  and  assigned  to
another operator who will purchase the Partnership's share of the
property.   The  reorganization  plan  also  provides   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership   receiving  net  sale  proceeds   of   approximately
$350,000, which resulted in a net gain of approximately $113,000.

        During the nine months ended September 30, 2000 and 1999,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $198,772 and $182,151, 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  $24,066 and $32,457, 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.

        As  of  September 30, 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  nine months ended September  30,  2000,  the
Partnership's  cash  balances increased $257,607  mainly  as  the
result  of  cash generated from the sale of property,  which  was
partially offset by cash used to purchase an additional property.
Net   cash  provided  by  operating  activities  decreased   from
$1,340,219  in 1999 to $1,303,833 in 2000 mainly as a  result  of
net  timing  differences in the collection of payments  from  the
lessees and the payment of expenses.


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

        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 nine  months  ended
September 30, 2000 and 1999, the Partnership generated cash  flow
from   the   sale  of  real  estate  of  $730,550  and  $423,600,
respectively.  During the same periods, the Partnership  expended
$390,457 and $337,666, respectively, 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.

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $385,920.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Simultaneously  with the purchase  of  the  land,  the
Partnership entered into a Development Financing Agreement  under
which   the  Partnership  will  advance  funds  to  RI  for   the
construction  of  a  Razzoo's restaurant on  the  site.   Through
September 30, 2000, the Partnership had advanced $19,661 for  the
construction  of  the property and was charging interest  on  the
advances at a rate of 8.5%.  The Partnership's share of the total
purchase  price,  including  the  cost  of  the  land,  will   be
approximately $919,200.  After the construction is complete,  the
Lease Agreement will be amended to require annual rental payments
of   approximately  $89,600.   The  remaining  interests  in  the
property  are  owned by AEI Net Lease Income &  Growth  Fund  XIX
Limited  Partnership, AEI Income and Growth Fund 23 LLC  and  AEI
Private Net Lease Millennium Fund 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.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of  $730,550  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.


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 nine 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.  On July 1, 2000, six Limited Partners
redeemed  a  total  of 59.0 Partnership Units  for  $51,912.   On
October 1, 2000, four Limited Partners redeemed a total of  95.67
Partnership  Units for $84,485.  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:

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

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

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

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

         the effect of tenant defaults; and

         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  Asset   Purchase  Agreement   dated
                September    18,    2000    between    the
                Partnership,  AEI  Real  Estate  Fund  XVI
                Limited  Partnership  and  Southern  River
                Restaurants  LLC relating to the  property
                at   850   I-10  Service  Road,   Slidell,
                Louisiana.

          27    Financial Data Schedule  for  period
                ended September 30, 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:  November 7, 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)