UNITED STATES
               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, 2003

                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


                                                     Page

PART I.   FINANCIAL INFORMATION

    Item 1.  Balance Sheet as of March 31, 2003
             and December 31,2002                     3

             Statements for the Periods ended
             March 31, 2003 and 2002:

               Income                                 4

               Cash Flows                             5

               Changes in Partners' Capital           6

             Notes to Financial Statements          7 - 10

    Item 2.  Management's Discussion and Analysis  10 - 13

    Item 3.  Controls and Procedures                  14

PART II.  OTHER INFORMATION

    Item 1.  Legal Proceedings                        14

    Item 2.  Changes in Securities                    14

    Item 3.  Defaults Upon Senior Securities          14

    Item 4.  Submission of Matters to a
             Vote of Security Holders                 14

    Item 5.  Other Information                        14

    Item 6.  Exhibits and Reports on Form 8-K         15

               Signatures                             15

               Certifications                        16-17


<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

              MARCH 31, 2003 AND DECEMBER 31, 2002

                           (Unaudited)

                             ASSETS

                                               2003       2002

CURRENT ASSETS:
  Cash and Cash Equivalents              $  4,874,473 $ 2,454,858
  Receivables                                       0       6,740
                                             --------    --------
      Total Current Assets                  4,874,473   2,461,598
                                             --------    --------
INVESTMENTS IN REAL ESTATE:
  Land                                      4,355,837   4,770,593
  Buildings and Equipment                   8,576,625   9,536,257
  Property Acquisition Costs                    9,937           0
  Accumulated Depreciation                 (2,600,656) (2,897,209)
                                            ---------   ---------
      Net Investments in Real Estate       10,341,743  11,409,641
                                            ---------   ---------
           Total Assets                   $15,216,216 $13,871,239
                                            =========   =========


                LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.      $ 191,725 $   107,784
  Distributions Payable                       564,683     362,664
  Unearned Rent                                51,815           0
                                             --------   ---------
      Total Current Liabilities               808,223     470,448
                                             --------   ---------
PARTNERS' CAPITAL:
  General Partners                             15,538       5,466
  Limited Partners, $1,000 Unit Value;
      30,000 Units authorized; 22,783 Units Issued;
      19,638 and 19,656 Units outstanding
      in 2003 and 2002, respectively       14,392,455  13,395,325
                                             --------   ---------
      Total Partners' Capital              14,407,993  13,400,791
                                             --------   ---------
           Total Liabilities and
           Partners' Capital              $15,216,216 $13,871,239
                                             ========   =========

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)


                                              2003       2002

INCOME:
   Rent                                   $  440,203 $  481,737
   Investment Income                           8,164      3,097
                                           ---------  ---------
        Total Income                         448,367    484,834
                                           ---------  ---------

EXPENSES:
   Partnership Administration - Affiliates    66,832     75,015
   Partnership Administration and Property
      Management - Unrelated Parties           9,927      9,687
      Depreciation                            74,352     84,874
                                           ---------  ---------
        Total Expenses                       151,111    169,576
                                           ---------  ---------

OPERATING INCOME                             297,256    315,258

GAIN ON SALE OF REAL ESTATE                1,303,013          0
                                           ---------  ---------
NET INCOME                                $1,600,269 $  315,258
                                           =========  =========

NET INCOME ALLOCATED:
   General Partners                       $   16,003 $    3,153
   Limited Partners                        1,584,266    312,105
                                           ---------  ---------
                                          $1,600,269 $  315,258
                                           =========  =========

NET INCOME PER LIMITED PARTNERSHIP UNIT
  (19,638 and 19,784 weighted average Units
  outstanding in 2003 and 2002,
  respectively)                           $    80.67 $    15.78
                                           =========  =========



 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)

                                             2003         2002

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                           $ 1,600,269   $ 315,258

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                            74,352      84,874
     Gain on Sale of Real Estate         (1,303,013)          0
     Decrease in Receivables                  6,740           0
     Increase in Payable to
        AEI Fund Management, Inc.            83,941      14,955
     Increase in Unearned Rent               51,815      26,003
                                           ---------  ---------
            Total Adjustments            (1,086,165)    125,832
                                           ---------  ---------
        Net Cash Provided By
            Operating Activities            514,104     441,090
                                          ---------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                (9,937)          0
   Proceeds from Sale of Real Estate      2,306,496           0
                                          ---------   ---------
        Net Cash Provided By
            Investing Activities          2,296,559           0
                                          ---------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in
     Distributions Payable                  202,019      (1,932)
   Distributions to Partners               (576,514)   (375,097)
   Redemption Payments                      (16,553)    (60,033)
                                          ---------   ---------
        Net Cash Used For
            Financing Activities            (391,048)  (437,062)
                                           ---------  ---------

NET INCREASE IN CASH AND CASH EQUIVALENTS  2,419,615      4,028

CASH AND CASH EQUIVALENTS,
beginning of period                        2,454,858    938,698
                                           ---------  ---------
CASH AND CASH EQUIVALENTS, end of period  $4,874,473 $  942,726
                                           =========  =========

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, 2001  $     0  $13,183,466  $13,183,466  19,849.85

  Distributions              (3,751)  (371,346)      (375,097)

  Redemption Payments          (600)   (59,433)       (60,033)    (65.50)

  Net Income                  3,153      312,105      315,258
                            -------    ---------    ---------  ---------
BALANCE, March 31, 2002     $(1,198) $13,064,792  $13,063,594  19,784.35
                            =======    =========    =========  =========


BALANCE, December 31, 2002  $ 5,466  $13,395,325  $13,400,791  19,655.68

  Distributions              (5,765)    (570,749)    (576,514)

  Redemption Payments          (166)     (16,387)     (16,553)    (18.00)

  Net Income                 16,003    1,584,266    1,600,269
                             ------    ---------    ---------  ---------
BALANCE, March 31, 2003     $15,538  $14,392,455  $14,407,993  19,637.68
                            =======    =========    =========  =========



 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                         MARCH 31, 2003

                           (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.   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 -

     On  August  29,  2002, the Partnership sold 4.5071%  of  the
     Champps  Americana  restaurant  in  Columbus,  Ohio,  to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds  of  $164,858, which resulted  in  a  net  gain  of
     $65,528.   The cost and related accumulated depreciation  of
     the interest sold was $115,627 and $16,297, respectively.

     Through March 31, 2003, the Partnership sold 99.2394% of the
     Fuddruckers  restaurant, in eight separate transactions,  to
     unrelated third parties.  The Partnership received total net
     sale proceeds of $1,989,027, which resulted in a net gain of
     $771,290.    The   total   cost  and   related   accumulated
     depreciation  of  the  interests  sold  was  $1,395,078  and
     $177,341,  respectively.  For the three months  ended  March
     31,  2003  and  2002,  the net gain was $286,861  and  $-0-,
     respectively.

     During the first three months of 2003, the Partnership  sold
     the Children's World daycare center in Phoenix, Arizona,  in
     four separate transactions, to unrelated third parties.  The
     Partnership  received total net sale proceeds of $1,592,169,
     which resulted in a net gain of $1,016,152.  The total  cost
     and  related accumulated depreciation of the interests  sold
     was $883,486 and $307,469, respectively.

     Subsequent  to  March  31, 2003, the  Partnership  sold  its
     23.95% interest in the Champps Americana restaurant in Troy,
     Michigan,  in six separate transactions, to unrelated  third
     parties.   The  Partnership received net  sale  proceeds  of
     approximately $1,646,000, which resulted in a  net  gain  of
     approximately $583,000.

     During  the  first  three  months  of  2003  and  2002,  the
     Partnership  distributed $202,020 and $34,998  of  net  sale
     proceeds  to  the Limited and General Partners  as  part  of
     their quarterly distributions which represented a return  of
     capital  of  $10.18 and $1.75 per Limited Partnership  Unit,
     respectively.  The remaining net sale proceeds  will  either
     be  reinvested in additional property or distributed to  the
     Partners in the future.

     On  April  3, 2003, the Partnership purchased a 50% interest
     in  a parcel of land in Mansfield, Texas for $383,000.   The
     land is leased to Kona Restaurant Group, Inc. (KRG) under  a
     Lease  Agreement with a primary term of 17 years and  annual
     rental   payments  of  $38,300.   Simultaneously  with   the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     will  advance funds to KRG for the construction of a  Johnny
     Carino's restaurant on the site.  The Partnership's share of
     the  total  purchase price, including the cost of the  land,
     will be approximately $1,075,000.  After the construction is
     complete,  the  Lease Agreement will be amended  to  require
     annual  rental  payments  of  approximately  $107,500.   The
     remaining  interest in the property is  owned  by  AEI  Real
     Estate  Fund XVII Limited Partnership, an affiliate  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

        The 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 the Partners;

       - 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.

The Application of Critical Accounting Policies

        The preparation of the Partnership's financial statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses  to  the  Partnership as opposed  to  other  funds  they
manage.

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

        The Partnership purchases properties and records them  in
the  financial  statements  at the lower  of  cost  or  estimated
realizable   value.   The  Partnership  initially   records   the
properties  at cost (including capitalized acquisition expenses).
The Partnership is required to periodically evaluate the carrying
value  of properties to determine whether their realizable  value
has  declined.   For  properties the Partnership  will  hold  and
operate, management determines whether impairment has occurred by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

       AEI Fund Management Inc. allocates expenses to each of the
funds  they manage primarily on the basis of the number of  hours
devoted  by  their employees to each fund's affairs.   They  also
allocate  some  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds  they  manage.   The  Partnership  reimburses  these
expenses  subject  to  detailed  limitations  contained  in   the
Partnership Agreement.

         Management   of  the  Partnership  has   discussed   the
development  and selection of the above accounting estimates  and
the management discussion and analysis disclosures regarding them
with the managing partner of the Partnership.

Results of Operations

        For  the three months ended March 31, 2003 and 2002,  the
Partnership  recognized rental income of $440,203  and  $481,737,
respectively.   During the same periods, the  Partnership  earned
investment income of $8,164 and $3,097, respectively.   In  2003,
rental income decreased due to property sales.   This decrease in
rental  income was partially offset by rent increases  on  eleven
properties.   In  2003, investment income increased  due  to  the
Partnership having more money invested in a money market  account
due to property sales.

       During the three months ended March 31, 2003 and 2002, the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $66,832 and $75,015, 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  $9,927  and  $9,687, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

       As of March 31, 2003, the Partnership's annualized regular
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
were  allocated  to  Limited  Partners  and  1%  to  the  General
Partners.

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

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle  the  Partnership to receive  additional  rent  in
future  years  if gross receipts for the property exceed  certain
specified  amounts.  Increases in sales volumes of  the  tenants,
due to inflation and real sales growth, may result in an increase
in rental income over the term of the leases.  Inflation also may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the Net  Cash  Flow
available for distributions.

Liquidity and Capital Resources

         During  the  three  months ended  March  31,  2003,  the
Partnership's cash balances increased $2,419,615 as a  result  of
cash  generated  from  the sale of property and  the  Partnership
distributed  less  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
increased from $441,090 in 2002 to $514,104 in 2003 as  a  result
of a decrease in Partnership administration expenses in 2003, and
net  timing  differences in the collection of payments  from  the
lessees and the payment of expenses, which were partially  offset
by a decrease in income in 2003.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
form  the  sale  of real estate.  During the three  months  ended
March 31, 2003, the Partnership generated cash flow from the sale
of  real  estate  of  $2,306,496.  During the  same  period,  the
Partnership   expended  $9,937  to  invest  in  real   properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

        On  August 29, 2002, the Partnership sold 4.5071% of  the
Champps  Americana restaurant in Columbus, Ohio, to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$164,858, which resulted in a net gain of $65,528.  The cost  and
related  accumulated  depreciation  of  the  interest  sold   was
$115,627 and $16,297, respectively.

        Through March 31, 2003, the Partnership sold 99.2394%  of
the  Fuddruckers  restaurant, in eight separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds of $1,989,027, which resulted in a net gain of $771,290.
The  total  cost  and  related accumulated  depreciation  of  the
interests  sold  was $1,395,078 and $177,341, respectively.   For
the  three months ended March 31, 2003 and 2002, the net gain was
$286,861 and $-0-, respectively.

        During  the  first three months of 2003, the  Partnership
sold the Children's World daycare center in Phoenix, Arizona,  in
four  separate  transactions, to unrelated  third  parties.   The
Partnership received total net sale proceeds of $1,592,169, which
resulted in a net gain of $1,016,152.  The total cost and related
accumulated  depreciation of the interests sold was $883,486  and
$307,469, respectively.

        Subsequent  to March 31, 2003, the Partnership  sold  its
23.95%  interest  in  the Champps Americana restaurant  in  Troy,
Michigan,  in  six  separate  transactions,  to  unrelated  third
parties.    The  Partnership  received  net  sale   proceeds   of
approximately  $1,646,000,  which  resulted  in  a  net  gain  of
approximately $583,000.

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

        During  the  first  three months of 2003  and  2002,  the
Partnership distributed $202,020 and $34,998 of net sale proceeds
to  the  Limited and General Partners as part of their  quarterly
distributions which represented a return of capital of $10.18 and
$1.75  per Limited Partnership Unit, respectively.  The remaining
net  sale  proceeds  will  either  be  reinvested  in  additional
property or distributed to the Partners in the future.

       On April 3, 2003, the Partnership purchased a 50% interest
in  a  parcel of land in Mansfield, Texas for $383,000.  The land
is  leased  to  Kona Restaurant Group, Inc. (KRG) under  a  Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $38,300.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership will advance funds  to  KRG
for the construction of a Johnny Carino's restaurant on the site.
The  Partnership's share of the total purchase  price,  including
the  cost  of the land, will be approximately $1,075,000.   After
the construction is complete, the Lease Agreement will be amended
to require annual rental payments of approximately $107,500.  The
remaining  interest in the property is owned by AEI  Real  Estate
Fund XVII Limited Partnership, an affiliate 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.  In  March
2003,  the Partnership declared a bonus distribution of  $202,020
of  net sale proceeds, which resulted in higher distributions  in
2003, when compared to 2002.

        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, 2003, two Limited Partners redeemed a total
of  18.0  Partnership  Units for $16,387 in accordance  with  the
Partnership  Agreement.  In prior years, a total of  227  Limited
Partners redeemed 3,127.37 Partnership Units for $2,580,435.  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 3.   CONTROLS AND PROCEDURES.

       (a) Evaluation of disclosure controls and procedures

        Under  the  supervision  and with  the  participation  of
management, including its President and Chief Financial  Officer,
the  Managing  General Partner of the Partnership  evaluated  the
effectiveness  of  the  design and operation  of  its  disclosure
controls and procedures (as defined in Rule [13a-14(c)/15d-14(c)]
under  the Exchange Act) related to the Partnership as of a  date
(the  "Evaluation Date") within 90 days prior to the filing  date
of  this  report.  Based upon that evaluation, the President  and
Chief Financial Officer of the Managing General Partner concluded
that,  as  of  the Evaluation Date, the disclosure  controls  and
procedures are effective in timely alerting them to the  material
information  relating to the Partnership required to be  included
in periodic SEC filings.

       (b)  Changes in internal controls

         There   were   no  significant  changes  made   in   the
Partnership's internal controls during the period covered by this
report or, to the Managing General Partner's knowledge, in  other
factors that could significantly affect these controls subsequent
to the date of their evaluation.


                   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

     10.1  Development Financing Agreement dated  April  3,  2003
     between  the Partnership, AEI Real Estate Fund XVII  Limited
     Partnership  and  Kona Restaurant Group, Inc.,  relating  to
     the property at 960 N. Highway 287, Mansfield, Texas.

     10.2  Net  Lease Agreement dated April 3, 2003  between  the
     Partnership,  AEI Real Estate Fund XVII Limited  Partnership
     and  Kona  Restaurant Group, Inc., relating to the  property
     at 960 N. Highway 287, Mansfield, Texas.

     99.1  Certification  of Chief Executive Officer  of  General
     Partner  pursuant  to Section 906 of the Sarbanes-Oxley  Act
     of 2002.

     99.2  Certification  of Chief Financial Officer  of  General
     Partner  pursuant  to Section 906 of the Sarbanes-Oxley  Act
     of 2002.


             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 12, 2003          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/ Patrick W. Keene
                                 Patrick W. Keene
                                 Chief Financial Officer
                                 (Principal Accounting Officer)

                         CERTIFICATIONS

I, Robert P. Johnson, certify that:

1.  I  have reviewed this quarterly report on Form 10-QSB of  AEI
Real Estate Fund XVIII Limited Partnership;

2.  Based on my knowledge, this quarterly report does not contain
any  untrue  statement of a material fact  or  omit  to  state  a
material fact necessary to make the statements made, in light  of
the  circumstances  under which such statements  were  made,  not
misleading  with respect to the period covered by this  quarterly
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information included in this quarterly report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this quarterly report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

       a)   designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this quarterly report is being prepared;

        b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior   to  the  filing  date  of  this  quarterly  report   (the
"Evaluation Date"); and

       c)   presented  in this quarterly report  our  conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

      a)  all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

       b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this quarterly report whether or  not  there  were
significant changes in internal controls or in other factors that
could  significantly affect internal controls subsequent  to  the
date  of  our  most recent evaluation, including  any  corrective
actions  with  regard  to significant deficiencies  and  material
weaknesses.



Dated:  May 12, 2003             /s/ Robert P. Johnson
                                 Robert P. Johnson, President
                                 AEI Fund Management XVIII, Inc.
                                 Managing General Partner

                         CERTIFICATIONS

I, Patrick W. Keene, certify that:

1.  I  have reviewed this quarterly report on Form 10-QSB of  AEI
Real Estate Fund XVIII Limited Partnership;

2.  Based on my knowledge, this quarterly report does not contain
any  untrue  statement of a material fact  or  omit  to  state  a
material fact necessary to make the statements made, in light  of
the  circumstances  under which such statements  were  made,  not
misleading  with respect to the period covered by this  quarterly
report;

3.  Based  on my knowledge; the financial statements,  and  other
financial  information included in this quarterly report,  fairly
present in all material respects the financial condition, results
of  operations and cash flows of the registrant as of,  and  for,
the periods presented in this quarterly report;

4.   The  registrant's  other  certifying  officers  and  I   are
responsible for establishing and maintaining disclosure  controls
and  procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have;

       a)   designed  such disclosure controls and procedures  to
ensure  that  material information relating  to  the  registrant,
including its consolidated subsidiaries, is made known to  us  by
others  within those entities, particularly during the period  in
which this quarterly report is being prepared;

        b)   evaluated  the  effectiveness  of  the  registrant's
disclosure  controls and procedures as of a date within  90  days
prior   to  the  filing  date  of  this  quarterly  report   (the
"Evaluation Date"); and

       c)   presented  in this quarterly report  our  conclusions
about the effectiveness of the disclosure controls and procedures
based on our evaluation as of the Evaluation Date;

5.   The  registrant's  other  certifying  officers  and  I  have
disclosed,   based  on  our  most  recent  evaluation,   to   the
registrant's  auditors  and the audit committee  of  registrant's
board   of   directors  (or  persons  performing  the  equivalent
functions):

      a)  all significant deficiencies in the design or operation
of   internal   controls   which  could  adversely   affect   the
registrant's  ability  to record, process, summarize  and  report
financial data and have identified for the registrant's  auditors
any material weaknesses in internal controls; and

       b)   any  fraud,  whether or not material,  that  involves
management or other employees who have a significant role in  the
registrant's internal controls; and

6.   The  registrant's  other  certifying  officers  and  I  have
indicated  in  this quarterly report whether or  not  there  were
significant changes in internal controls or in other factors that
could  significantly affect internal controls subsequent  to  the
date  of  our  most recent evaluation, including  any  corrective
actions  with  regard  to significant deficiencies  and  material
weaknesses.



Dated:  May 12, 2003             /s/ Patrick W. Keene
                                 Patrick W. Keene, Chief Financial Officer
                                 AEI Fund Management XVIII, Inc.
                                 Managing General Partner