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, 1999
                                
                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, 1999 and December 31, 1998    

         Statements for the Periods ended March 31, 1999 and 1998:

            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, 1999 AND DECEMBER 31, 1998
                                
                           (Unaudited)
                                
                             ASSETS
                                
                                                       1999            1998

CURRENT ASSETS:
  Cash and Cash Equivalents                        $   702,173    $   311,087
  Receivables                                           18,940         52,928
                                                    -----------    -----------
      Total Current Assets                             721,113        364,015
                                                    -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                               5,384,757      5,491,552
  Buildings and Equipment                           11,254,613     10,652,675
  Construction in Progress                                   0        439,301
  Property Acquisition Costs                               407         22,316
  Accumulated Depreciation                          (2,232,033)    (2,159,173)
                                                    -----------    -----------
      Net Investments in Real Estate                14,407,744     14,446,671
                                                    -----------    -----------
         Total Assets                              $15,128,857    $14,810,686
                                                    ===========    ===========

                     LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.             $    36,857    $    16,768
  Distributions Payable                                342,002        195,285
  Security Deposit                                      12,500         12,500
  Unearned Rent                                         64,976          5,000
                                                    -----------    -----------
      Total Current Liabilities                        456,335        229,553
                                                    -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                     (48,739)       (49,653)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   20,910 Units outstanding                         14,721,261     14,630,786
                                                    -----------    -----------
      Total Partners' Capital                       14,672,522     14,581,133
                                                    -----------    -----------
        Total Liabilities and Partners' Capital    $15,128,857    $14,810,686
                                                    ===========    ===========
                                
                                
 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)
                                

                                                        1999         1998

INCOME:
   Rent                                             $   470,972  $   345,488
   Investment Income                                      8,478       60,061
                                                     -----------  -----------
        Total Income                                    479,450      405,549
                                                     -----------  -----------

EXPENSES:
   Partnership Administration - Affiliates               63,761       63,803
   Partnership Administration and Property
      Management - Unrelated Parties                     18,043       16,997
   Depreciation                                          99,581       72,668
                                                     -----------  -----------
        Total Expenses                                  181,385      153,468
                                                     -----------  -----------

OPERATING INCOME                                        298,065      252,081

GAIN ON SALE OF REAL ESTATE                             146,588            0
                                                     -----------  -----------
NET INCOME                                          $   444,653  $   252,081
                                                     ===========  ===========

NET INCOME ALLOCATED:
   General Partners                                 $     4,447  $     2,520
   Limited Partners                                     440,206      249,561
                                                     -----------  -----------
                                                    $   444,653  $   252,081
                                                     ===========  ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
 (20,910 and 21,487 weighted average Units
 outstanding in 1999 and 1998, respectively)        $     21.05  $     11.61
                                                     ===========  ===========


 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)
                                
                                                         1999         1998

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       $   444,653   $   252,081

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                        99,581        72,668
     Gain on Sale of Real Estate                       (146,588)            0
     Decrease in Receivables                             33,988         9,691
     Increase in Payable to
        AEI Fund Management, Inc.                        20,089         4,897
     Increase in Unearned Rent                           59,976        63,454
                                                     -----------   -----------
        Total Adjustments                                67,046       150,710
                                                     -----------   -----------
        Net Cash Provided By
        Operating Activities                            511,699       402,791
                                                     -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                          (337,666)      (93,755)
   Proceeds from Sale of Real Estate                    423,600             0
                                                     -----------   -----------
        Net Cash Provided By (Used For)
        Investing Activities                             85,934       (93,755)
                                                     -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                    146,717       192,108
   Distributions to Partners                           (353,264)     (333,232)
                                                     -----------   -----------
        Net Cash Used For
        Financing Activities                           (206,547)     (141,124)
                                                     -----------   -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS               391,086       167,912

CASH AND CASH EQUIVALENTS, beginning of period          311,087     4,213,283
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS, end of period            $   702,173   $ 4,381,195
                                                     ===========   ===========

 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, 1997  $ (46,818)   $14,911,469   $14,864,651   21,487.28

  Distributions                (3,332)      (329,900)     (333,232)

  Net Income                    2,520        249,561       252,081
                             ---------    -----------   -----------  ----------
BALANCE, March 31, 1998     $ (47,630)   $14,831,130   $14,783,500   21,487.28
                             =========    ===========   ===========  ==========


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
                             =========    ===========   ===========  ==========



 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, 1999
                                
                           (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 of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  AFM,  serves  as  the
     Individual General Partner of the Partnership.  An affiliate
     of   AFM,   AEI   Fund   Management,  Inc.,   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  Partnership's  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 the operation
     of the Partnership, 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 the Partnership's 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  the  Partnership's
     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  Partnership
     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 the Partnership's 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 -

     The  Partnership  owned  a 93.2478% interest  in  a  Sizzler
     restaurant  in Springboro, Ohio.  In November,  1993,  after
     reviewing  the  lessee's operating results, the  Partnership
     determined  that the lessee would be unable to  operate  the
     restaurant   in   a   manner  capable  of   maximizing   the
     restaurant's sales.  Consequently, at the direction  of  the
     Partnership,   a  multi-unit  restaurant  operator   assumed
     operation  of the restaurant while the Partnership  reviewed
     the  available  options.   In June,  1994,  the  Partnership
     closed  the  restaurant and listed it  for  sale  or  lease.
     While   the   property  was  vacant,  the  Partnership   was
     responsible  for  the  real estate  taxes  and  other  costs
     required to maintain the property.
     
     In  December,  1996,  the Partnership,  in  order  to  avoid
     additional property management expenses, decided to sell the
     Sizzler property rather than to continue to attempt  to  re-
     lease  the  property.  In addition, based on an analysis  of
     market conditions in the area, it was determined that a sale
     of   the   property   would  result  in  net   proceeds   of
     approximately  $400,000.   The Partnership's  share  of  the
     proceeds  would  be  approximately $373,000.   A  charge  to
     operations  for  real  estate  impairment  of  $693,500  was
     recognized  in  the  fourth quarter of 1996,  which  is  the
     difference  between  book  value at  December  31,  1996  of
     $1,066,500 and the estimated market value of $373,000.   The
     charge  was recorded against the cost of the land,  building
     and equipment.
     
     On  July 21, 1998, the Partnership sold its interest in  the
     Sizzler restaurant in Springboro, Ohio to an unrelated third
     party.   The  Partnership  received  net  sale  proceeds  of
     $350,635,  which  resulted in a net  loss  on  the  sale  of
     $22,345.
     
     In  August,  1995, the lessee of the two Rally's  properties
     filed  for  reorganization.  After reviewing  the  operating
     results  of the lessee, the Partnership agreed to amend  the
     Leases  of the two properties.  Effective December 1,  1995,
     the Partnership amended the Leases to reduce the annual base
     rent  from $47,498 and $48,392 to $15,000 for each property.
     The  Partnership could receive additional rent in the future
     equal  to 6.75% of the amount by which gross receipts exceed
     $275,000.   In 1997, the Leases, as amended, were  confirmed
     as  part of the reorganization plan.  The lessee has  agreed
     to  pay  all  pre-petition and post-petition  rents  due  of
     $80,775  and  the  Partnership's related administrative  and
     legal   expenses.   However,  due  to  the  uncertainty   of
     collection,  the Partnership has not accrued  any  of  these
     amounts for financial reporting purposes.
     
     As  of  December  31, 1997, based on an analysis  of  market
     conditions in the area, it was determined the fair value  of
     the  Rally's properties was approximately $270,000.  In  the
     fourth  quarter  of  1997, a charge to operations  for  real
     estate  impairment of $220,500 was recognized, which is  the
     difference  between the book value at December 31,  1997  of
     $490,500  and  the  estimated fair value of  $270,000.   The
     charge  was  recorded against the cost of the  building  and
     equipment.
     
     In  1997, the Partnership took possession of the Taco Cabana
     restaurant in Brownsville, Texas and listed it for  sale  or
     re-lease.  The Partnership was scheduled to receive, but did
     not  collect, $29,580 in rent in the first three  months  of
     1998.    These  amounts  were  not  accrued  for   financial
     reporting  purposes.   While the property  was  vacant,  the
     Partnership was responsible for real estate taxes and  other
     costs required to maintain the property.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)

     On   November  18,  1998,  the  Partnership  re-leased   the
     Brownsville  property  to  Sergio  Gonzalez  under  a  Lease
     Agreement with a primary term of two years and annual rental
     payments of $37,200.  The property is now operated as a Taco
     Fiesta restaurant.
     
     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, 1999, 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 and  it
     is  management's belief that the Lease will  be  assumed  by
     GCR.
     
     On  December  23, 1997, the Partnership purchased  a  23.95%
     interest in a parcel of land in Troy, Michigan for $361,889.
     The  land is leased to Champps Entertainment, Inc. (Champps)
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $25,332.  Effective June 20, 1998,
     the  annual  rent was increased to $37,998.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership  advanced funds to Champps for the  construction
     of  a  Champps Americana restaurant on the site.  Initially,
     the  Partnership charged interest on the advances at a  rate
     of  7.0%.   Effective June 20, 1998, the interest  rate  was
     increased  to  10.50%.   On September  3,  1998,  after  the
     development  was completed, the Lease Agreement was  amended
     to   require  annual  rental  payments  of  $122,605.    The
     Partnership's   share  of  the  total   acquisition   costs,
     including  the  cost  of  the  land,  was  $1,192,496.   The
     remaining  interests in the property are owned by  AEI  Real
     Estate  Fund  XV Limited Partnership, AEI Real  Estate  Fund
     XVII  Limited Partnership and AEI Net Lease Income &  Growth
     Fund XIX Limited Partnership, affiliates of the Partnership.
     
     In  January, 1998, the Partnership entered into an agreement
     to  purchase  a  45% interest in a Tumbleweed restaurant  in
     Chillicothe,  Ohio.   On  April 13,  1998,  the  Partnership
     purchased its share of the land for $216,915.  The  land  is
     leased  to  Tumbleweed, Inc. (TWI) under a  Lease  Agreement
     with  a  primary term of 15 years and annual rental payments
     of  $18,438.  Effective August 10, 1998, the annual rent was
     increased  to $22,234.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  advanced
     funds to TWI for the construction of a Tumbleweed restaurant
     on the site.  Initially, the Partnership charged interest on
     the  advances at a rate of 8.5%.  Effective August 10, 1998,
     the  interest rate was increased to 10.25%.  On November 20,
     1998,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $57,314.   The Partnership's share of the total  acquisition
     costs,  including the cost of the land, was  $573,831.   The
     remaining  interests  in  the  property  are  owned  by  the
     Individual General Partner and AEI Net Lease Income & Growth
     Fund XIX Limited Partnership.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)

     In April, 1998, the Partnership entered into an agreement to
     purchase a Tumbleweed restaurant in Columbus, Ohio.  On  May
     1,  1998,  the Partnership purchased the land for  $503,832.
     The  land  is leased to TWI under a Lease Agreement  with  a
     primary  term  of  15  years and annual rental  payments  of
     $42,826.   Effective August 28, 1998, the  annual  rent  was
     increased  to $51,643.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  advanced
     funds to TWI for the construction of a Tumbleweed restaurant
     on the site.  Initially, the Partnership charged interest on
     the  advances at a rate of 8.5%.  Effective August 28, 1998,
     the  interest rate was increased to 10.25%.  On December 28,
     1998,  after  the development was completed, the Partnership
     assigned, for diversification purposes, 60% of its  interest
     in  the property to an affiliated Partnership and the  Lease
     Agreement  was amended to require annual rental payments  of
     $55,401.   The Partnership's share of the total  acquisition
     costs,  including the cost of the land, was  $554,269.   The
     remaining interest in the property is owned by AEI Net Lease
     Income & Growth Fund XIX Limited Partnership.
     
     In April, 1998, the Partnership entered into an Agreement to
     purchase  an Old Country Buffet restaurant to be constructed
     in  Northlake,  Illinois.  On May 18, 1998, the  Partnership
     purchased  the  land for $330,000.  The Partnership  charged
     interest  on  the land at a rate of 10% until September  27,
     1998.  On September 28, 1998, the tenant began paying annual
     rent  of  $130,000.  On September 30, 1998, the  Partnership
     advanced $370,000 for the construction of the property.   On
     December 29, 1998, after the construction was completed, the
     Partnership paid $639,000 of additional construction  costs.
     The total acquisition cost was $1,350,804.  The property  is
     leased  to  OCB  Realty Co. under a Lease Agreement  with  a
     primary term of 20 years.
     
     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 the first three months of 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.
     
         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, 1999 and 1998,  the
Partnership  recognized rental income of $470,972  and  $345,488,
respectively.   During the same periods, the  Partnership  earned
investment income of $8,478 and $60,061, respectively.  In  1999,
rental  income increased as a result of additional rent  received
from  five property acquisitions in 1998 and 1999, rent increases
on   ten  properties  and  rent  received  from  re-leasing   the
Brownsville  property.   These increases in  rental  income  were
partially  offset  by  a decrease in rental  income  due  to  the
property  sales  discussed below, and a  decrease  in  investment
income  earned on net sale proceeds prior to the purchase of  the
additional properties.

        The  Partnership owned a 93.2478% interest in  a  Sizzler
restaurant  in  Springboro,  Ohio.   In  November,  1993,   after
reviewing   the  lessee's  operating  results,  the   Partnership
determined  that  the  lessee would  be  unable  to  operate  the
restaurant  in  a  manner capable of maximizing the  restaurant's
sales.   Consequently,  at the direction of  the  Partnership,  a
multi-unit   restaurant  operator  assumed   operation   of   the
restaurant while the Partnership reviewed the available  options.
In  June, 1994, the Partnership closed the restaurant and  listed
it  for  sale  or  lease.   While the property  was  vacant,  the
Partnership was responsible for the real estate taxes  and  other
costs required to maintain the property.

        In  December,  1996, the Partnership, in order  to  avoid
additional  property  management expenses, decided  to  sell  the
Sizzler  property rather than to continue to attempt to  re-lease
the  property.   In  addition, based on  an  analysis  of  market
conditions  in  the area, it was determined that a  sale  of  the
property  would result in net proceeds of approximately $400,000.
The  Partnership's share of the proceeds would  be  approximately
$373,000.   A charge to operations for real estate impairment  of
$693,500  was recognized in the fourth quarter of 1996, which  is
the  difference  between  book value  at  December  31,  1996  of
$1,066,500  and  the  estimated market value  of  $373,000.   The
charge  was  recorded against the cost of the land, building  and
equipment.

       On July 21, 1998, the Partnership sold its interest in the
Sizzler  restaurant  in Springboro, Ohio to  an  unrelated  third
party.   The Partnership received net sale proceeds of  $350,635,
which resulted in a net loss on the sale of $22,345.


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

        In August, 1995, the lessee of the two Rally's properties
filed  for reorganization.  After reviewing the operating results
of  the lessee, the Partnership agreed to amend the Leases of the
two  properties.   Effective December 1,  1995,  the  Partnership
amended  the  Leases to reduce the annual base rent from  $47,498
and  $48,392 to $15,000 for each property.  The Partnership could
receive  additional  rent in the future equal  to  6.75%  of  the
amount  by  which gross receipts exceed $275,000.  In  1997,  the
Leases,  as amended, were confirmed as part of the reorganization
plan.   The  lessee has agreed to pay all pre-petition and  post-
petition  rents  due  of  $80,775 and the  Partnership's  related
administrative  and  legal  expenses.   However,   due   to   the
uncertainty of collection, the Partnership has not accrued any of
these amounts for financial reporting purposes.

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Rally's  properties was approximately $270,000.   In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $220,500 was recognized, which is the  difference
between  the book value at December 31, 1997 of $490,500 and  the
estimated  fair  value  of  $270,000.  The  charge  was  recorded
against the cost of the building and equipment.

        In  1997,  the Partnership took possession  of  the  Taco
Cabana restaurant in Brownsville, Texas and listed it for sale or
re-lease.  The Partnership was scheduled to receive, but did  not
collect,  $29,580  in  rent in the first three  months  of  1998.
These  amounts were not accrued for financial reporting purposes.
While  the  property was vacant, the Partnership was  responsible
for  real  estate taxes and other costs required to maintain  the
property.

        On  November  18,  1998,  the Partnership  re-leased  the
Brownsville  property to Sergio Gonzalez under a Lease  Agreement
with  a  primary term of two years and annual rental payments  of
$37,200.   The  property  is  now  operated  as  a  Taco   Fiesta
restaurant.

       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, 1999, 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 and it is management's belief that
the Lease will be assumed by GCR.

       During the three months ended March 31, 1999 and 1998, the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $63,761 and $63,803, 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  $18,043 and $16,997, 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, 1999, the Partnership's annualized  cash
distribution  rate  was  6.5%,  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.

       The Year 2000 issue is the result of computer systems that
use  two  digits rather than four to define the applicable  year,
which  may prevent such systems from accurately processing  dates
ending  in  the  Year  2000 and beyond.   This  could  result  in
computer  system failures or disruption of operations, including,
but not limited to, an inability to process transactions, to send
or  receive  electronic data, or to engage  in  routine  business
activities.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the  Partnership.   In  1998,  AEI  completed   an
assessment of its computer hardware and software systems and  has
replaced or upgraded certain computer hardware and software using
the  assistance  of  outside vendors.  AEI has  received  written
assurance  from  the equipment and software manufacturers  as  to
Year  2000  compliance.   The  costs associated  with  Year  2000
compliance have not been, and are not expected to be, material.

        The  Partnership intends to monitor and communicate  with
tenants regarding Year 2000 compliance, although there can be  no
assurance  that the systems of the various tenants will  be  Year
2000 compliant.

Liquidity and Capital Resources

        During  the  three  months  ended  March  31,  1999,  the
Partnership's cash balances increased $391,086 as the Partnership
distributed  less  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased from $402,791 in 1998 to $511,699 in 1999 mainly  as  a
result   of  an  increase  in  income  in  1999  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, 1999, the Partnership generated cash flow from the sale
of  real estate of $423,600.  During the three months ended March
31, 1999 and 1998, the Partnership expended $337,666 and $93,755,
respectively,   to  invest  in  real  properties  (inclusive   of
acquisition   expenses)  as  the  Partnership   reinvested   cash
generated from property sales.


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

        On  December 23, 1997, the Partnership purchased a 23.95%
interest in a parcel of land in Troy, Michigan for $361,889.  The
land  is leased to Champps Entertainment, Inc. (Champps) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $25,332.  Effective June 20, 1998, the annual  rent
was  increased to $37,998.  Simultaneously with the  purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under which the Partnership advanced funds to  Champps
for  the  construction of a Champps Americana restaurant  on  the
site.   Initially,  the  Partnership  charged  interest  on   the
advances  at  a  rate  of 7.0%.  Effective  June  20,  1998,  the
interest  rate  was increased to 10.50%.  On September  3,  1998,
after  the  development was completed, the  Lease  Agreement  was
amended  to  require  annual rental payments  of  $122,605.   The
Partnership's share of the total acquisition costs, including the
cost of the land, was $1,192,496.  The remaining interests in the
property   are  owned  by  AEI  Real  Estate  Fund   XV   Limited
Partnership,  AEI Real Estate Fund XVII Limited  Partnership  and
AEI  Net  Lease  Income  & Growth Fund XIX  Limited  Partnership,
affiliates of the Partnership.

         In  January,  1998,  the  Partnership  entered  into  an
agreement  to purchase a 45% interest in a Tumbleweed  restaurant
in  Chillicothe,  Ohio.   On  April  13,  1998,  the  Partnership
purchased its share of the land for $216,915.  The land is leased
to  Tumbleweed, Inc. (TWI) under a Lease Agreement with a primary
term   of  15  years  and  annual  rental  payments  of  $18,438.
Effective  August  10,  1998, the annual rent  was  increased  to
$22,234.   Simultaneously  with the purchase  of  the  land,  the
Partnership entered into a Development Financing Agreement  under
which  the Partnership advanced funds to TWI for the construction
of   a  Tumbleweed  restaurant  on  the  site.   Initially,   the
Partnership charged interest on the advances at a rate  of  8.5%.
Effective  August  10, 1998, the interest rate was  increased  to
10.25%.   On  November  20,  1998,  after  the  development   was
completed,  the  Lease Agreement was amended  to  require  annual
rental payments of $57,314.  The Partnership's share of the total
acquisition costs, including the cost of the land, was  $573,831.
The  remaining  interests  in  the  property  are  owned  by  the
Individual General Partner and AEI Net Lease Income & Growth Fund
XIX Limited Partnership.

        In April, 1998, the Partnership entered into an agreement
to purchase a Tumbleweed restaurant in Columbus, Ohio.  On May 1,
1998, the Partnership purchased the land for $503,832.  The  land
is  leased to TWI under a Lease Agreement with a primary term  of
15 years and annual rental payments of $42,826.  Effective August
28,   1998,   the   annual   rent  was  increased   to   $51,643.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership  advanced  funds to TWI for  the  construction  of  a
Tumbleweed  restaurant on the site.  Initially,  the  Partnership
charged  interest on the advances at a rate of  8.5%.   Effective
August  28, 1998, the interest rate was increased to 10.25%.   On
December  28,  1998,  after the development  was  completed,  the
Partnership assigned, for diversification purposes,  60%  of  its
interest  in  the property to an affiliated Partnership  and  the
Lease Agreement was amended to require annual rental payments  of
$55,401.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $554,269.   The  remaining
interest  in  the  property is owned by AEI Net  Lease  Income  &
Growth Fund XIX Limited Partnership.

        In April, 1998, the Partnership entered into an Agreement
to purchase an Old Country Buffet restaurant to be constructed in
Northlake, Illinois.  On May 18, 1998, the Partnership  purchased
the  land for $330,000.  The Partnership charged interest on  the
land at a rate of 10% until September 27, 1998.  On September 28,
1998,  the  tenant  began paying annual  rent  of  $130,000.   On
September  30,  1998, the Partnership advanced $370,000  for  the
construction  of the property.  On December 29, 1998,  after  the
construction  was  completed, the Partnership  paid  $639,000  of
additional  construction costs.  The total acquisition  cost  was
$1,350,804.   The property is leased to OCB Realty  Co.  under  a
Lease Agreement with a primary term of 20 years.


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

        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  the  first three months of 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.

       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.   Prior  to  1998,
redemption payments were paid to redeeming Partners in the fourth
quarter  of  each  year.  Beginning in 1998, redemption  payments
were  paid  to  redeeming  Partners on a  quarterly  basis.   The
redemption  payments generally are funded with  cash  that  would
normally  be paid as part of the regular quarterly distributions.
As  a  result, total distributions and distributions payable have
fluctuated  from year to year due to cash used to fund redemption
payments.

        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.

        During 1998, forty-two Limited Partners redeemed a  total
of  576.8  Partnership Units for $461,904 in accordance with  the
Partnership  Agreement.   The Partnership  acquired  these  Units
using Net Cash Flow from operations.  In prior years, a total  of
seventy-eight  Limited  Partners  redeemed  1,295.52  Partnership
Units   for   $1,028,771  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 the 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;
       
    <BULET>   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.

ITEM 5.OTHER INFORMATION

      None.

                                
                   PART II - OTHER INFORMATION
                           (Continued)
                                
ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                          Description

          27  Financial Data Schedule  for  period
              ended March 31, 1999.

       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 7, 1999           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)