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, 2001

                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, 2001 and December 31, 2000

        Statements for the Periods ended March 31, 2001 and 2000:

           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, 2001 AND DECEMBER 31, 2000

                           (Unaudited)

                             ASSETS

                                                     2001           2000
CURRENT ASSETS:
  Cash and Cash Equivalents                      $   928,818    $ 1,026,027
  Receivables                                         17,822         19,619
                                                  -----------    -----------
      Total Current Assets                           946,640      1,045,646
                                                  -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             5,104,935      5,104,580
  Buildings and Equipment                          9,812,122      9,812,122
  Construction in Progress                           254,154        174,229
  Accumulated Depreciation                        (2,517,717)    (2,435,065)
                                                  -----------    -----------
                                                  12,653,494     12,655,866
  Real Estate Held for Sale                          444,695        444,695
                                                  -----------    -----------
      Net Investments in Real Estate              13,098,189     13,100,561
                                                  -----------    -----------
           Total  Assets                         $14,044,829    $14,146,207
                                                  ===========    ===========

                  LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    27,387    $    31,767
  Distributions Payable                              367,756        368,669
  Unearned Rent                                       85,735         13,274
                                                  -----------    -----------
      Total Current Liabilities                      480,878        413,710
                                                  -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                   (59,825)       (58,139)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Units issued;
   20,111 and 20,222 Units outstanding in 2001
   and 2000, respectively                         13,623,776     13,790,636
                                                  -----------    -----------
     Total Partners' Capital                      13,563,951     13,732,497
                                                  -----------    -----------
        Total Liabilities and Partners' Capital  $14,044,829    $14,146,207
                                                  ===========    ===========

 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)


                                                     2001           2000

INCOME:
   Rent                                          $   462,909    $   483,095
   Investment Income                                  18,164          8,917
                                                  -----------    -----------
        Total Income                                 481,073        492,012
                                                  -----------    -----------

EXPENSES:
   Partnership Administration - Affiliates            70,317         64,507
   Partnership Administration and Property
      Management - Unrelated Parties                  17,284         11,927
   Depreciation                                       82,652         95,850
                                                  -----------    -----------
        Total Expenses                               170,253        172,284
                                                  -----------    -----------

NET INCOME                                       $   310,820    $   319,728
                                                  ===========    ===========

NET INCOME ALLOCATED:
   General Partners                              $     3,108    $     3,197
   Limited Partners                                  307,712        316,531
                                                  -----------    -----------
                                                 $   310,820    $   319,728
                                                  ===========    ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
  (20,111 and 20,625 weighted average Units
  outstanding in 2001 and 2000, respectively)    $     15.30    $     15.35
                                                  ===========    ===========


 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)

                                                     2001           2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                   $   310,820    $   319,728

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                     82,652         95,850
     (Increase) Decrease in Receivables                1,797         (2,574)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     (4,380)        32,748
     Increase in Unearned Rent                        72,461         85,464
                                                  -----------    -----------
        Total Adjustments                            152,530        211,488
                                                  -----------    -----------
        Net Cash Provided By
        Operating Activities                         463,350        531,216
                                                  -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                        (80,280)             0
                                                  -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable         (913)        26,311
   Distributions to Partners                        (379,463)      (380,344)
   Redemption Payments                               (99,903)             0
                                                  -----------    -----------
        Net Cash Used For
        Financing Activities                        (480,279)      (354,033)
                                                  -----------    -----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                              (97,209)       177,183

CASH AND CASH EQUIVALENTS, beginning of period     1,026,027        673,082
                                                  -----------    -----------
CASH AND CASH EQUIVALENTS, end of period         $   928,818    $   850,265
                                                  ===========    ===========



 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, 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
                             ========   ===========   ===========  ===========


BALANCE, December 31, 2000  $(58,139)  $13,790,636   $13,732,497    20,221.57

  Distributions               (3,795)     (375,668)     (379,463)

  Redemption Payments           (999)      (98,904)      (99,903)     (110.87)

  Net Income                   3,108       307,712       310,820
                             --------   -----------   -----------  -----------
BALANCE, March 31, 2001     $(59,825)  $13,623,776   $13,563,951    20,110.70
                             ========   ===========   ===========  ===========


 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, 2001

                           (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 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.

     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 provided for the Lease to be  assumed
     by  GCR  and assigned to another operator who purchased  the
     Partnership's  share  of the property.   The  reorganization
     plan  also provided 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 $355,151, which resulted in a net gain  of
     $118,740.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation   was   $280,019   and   $43,608,
     respectively.

     In   November  2000,  the  Lease  on  the  Taco  Fiesta   in
     Brownsville,  Texas  expired and  was  not  renewed  by  the
     tenant.   The  restaurant was closed and  listed  for  sale.
     While the property is vacant, the Partnership is responsible
     for  the  real  estate  taxes and other  costs  required  to
     maintain  the property.  At December 31, 2000, the  property
     was  reclassified on the balance sheet to Real  Estate  Held
     for  Sale.  In March 2001, the Partnership entered  into  an
     agreement to sell the property to an unrelated third  party.
     The  net sale proceeds will be approximately $460,000, which
     will result in a net gain of approximately $15,000.

     During   the  three  months  ended  March  31,   2001,   the
     Partnership distributed $85,893 of the net sale proceeds  to
     the  Limited  and General Partners as part of their  regular
     quarterly  distributions  which  represented  a  return   of
     capital   of  $4.23  per  Limited  Partnership  Unit.    The
     remaining  net  sale proceeds will either be re-invested  in
     additional  property or distributed to the Partners  in  the
     future.

     On  June  30, 2000, the Partnership purchased a 24% interest
     in  a  parcel  of land in Alpharetta, Georgia for  $370,479.
     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.   Effective November  26,  2000,  the
     annual  rent was increased to $37,627.  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  March  31,  2001,  the
     Partnership  had  advanced $254,154 for the construction  of
     the property and was charging interest on the advances at  a
     rate  of 8.5%.  Effective November 26, 2000 and January  31,
     2001,  the  interest rate was increased to 9.75% and  15.0%,
     respectively.  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.

         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, 2001 and 2000,  the
Partnership  recognized rental income of $462,909  and  $483,095,
respectively.   During the same periods, the  Partnership  earned
investment income of $18,164 and $8,917, respectively.  In  2001,
rental income decreased mainly as a result of the property  sales
discussed  below.  This decrease in rental income  was  partially
offset by rent received from one property acquisition in 2000 and
rent   increases  on  twelve  properties.   In  2001,  additional
investment  income was earned on the net proceeds  from  property
sales.

       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
provided  for  the  Lease to be assumed by GCR  and  assigned  to
another  operator who purchased the Partnership's  share  of  the
property.   The  reorganization  plan  also  provided   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  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property  is vacant, the Partnership is responsible for the  real
estate  taxes and other costs required to maintain the  property.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2001,  the
Partnership entered into an agreement to sell the property to  an
unrelated   third   party.   The  net  sale  proceeds   will   be
approximately  $460,000,  which will result  in  a  net  gain  of
approximately $15,000.

       During the three months ended March 31, 2001 and 2000, the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $70,317 and $64,507, 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  $17,284 and $11,927, 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, 2001, 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,  2001,  the
Partnership's cash balances decreased $97,209 mainly as a  result
of  cash  used  to  purchase  property.   Net  cash  provided  by
operating activities decreased from $531,216 in 2000 to  $463,350
in  2001  as a result of a decrease in income and an increase  in
Partnership  administration expenses  in  2001,  and  net  timing
differences  in the collection of payments from the  lessees  and
the payment of expenses.

        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,  2001, the Partnership expended $80,280 to  invest  in
real  properties  (inclusive  of  acquisition  expenses)  as  the
Partnership reinvested cash generated from property sales.

        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.

        During  the  three  months  ended  March  31,  2001,  the
Partnership distributed $85,893 of the net sale proceeds  to  the
Limited  and General Partners as part of their regular  quarterly
distributions which represented a return of capital of $4.23  per
Limited  Partnership Unit.  The remaining net sale proceeds  will
either  be  re-invested in additional property or distributed  to
the Partners in the future.

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

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $370,479.   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.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  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 March 31, 2001, the Partnership had advanced $254,154 for
the construction of the property and was charging interest on the
advances  at  a rate of 8.5%.  Effective November  26,  2000  and
January  31, 2001, the interest rate was increased to  9.75%  and
15.0%,  respectively.   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.

       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.

        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 January 1, 2001, ten Limited Partners redeemed a total
of  110.87 Partnership Units for $98,904 in accordance  with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
167  Limited  Partners  redeemed 2,561.23 Partnership  Units  for
$2,070,702  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.

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits - None.

       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 10, 2001          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)