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:  September 30, 2002

                Commission file number:  0-18289


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


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


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

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


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

Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during the preceding 12 months (or for such shorter  period
that  the registrant was required to file such reports), and  (2)
has  been  subject to such filing requirements for  the  past  90
days.

                         Yes  [X]   No

         Transitional Small Business Disclosure Format:

                         Yes        No  [X]




         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP


                              INDEX




PART I. Financial Information

 Item 1. Balance Sheet as of September 30, 2002 and December 31, 2001

         Statements for the Periods ended September 30, 2002 and 2001:

           Income

           Cash Flows

           Changes in Partners' Capital

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis

 Item 3. Controls and Procedures

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

          Signatures

          Certifications
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

            SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

                           (Unaudited)

                             ASSETS

                                                    2002            2001

CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 1,209,351     $   938,698
  Receivables                                         1,294               0
                                                 -----------     -----------
      Total Current Assets                        1,210,645         938,698
                                                 -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                            5,056,613       5,095,552
  Buildings and Equipment                        10,154,413      10,303,310
  Accumulated Depreciation                       (2,929,503)     (2,764,686)
                                                 -----------     -----------
      Net Investments in Real Estate             12,281,523      12,634,176
                                                 -----------     -----------
           Total  Assets                        $13,492,168     $13,572,874
                                                 ===========     ===========


                         LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    47,341     $    24,142
  Distributions Payable                             362,734         365,266
  Unearned Rent                                      55,488               0
                                                 -----------     -----------
      Total Current Liabilities                     465,563         389,408
                                                 -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                      633               0
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   19,769 and 19,850 Units outstanding in
   2002 and 2001, respectively                   13,025,972      13,183,466
                                                 -----------     -----------
      Total Partners' Capital                    13,026,605      13,183,466
                                                 -----------     -----------
        Total Liabilities and Partners' Capital $13,492,168     $13,572,874
                                                 ===========     ===========

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

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                                Three Months Ended        Nine Months Ended
                              9/30/02       9/30/01     9/30/02       9/30/01

INCOME:
   Rent                      $  483,483   $  473,024   $1,447,936  $1,401,507
   Investment Income              3,540       10,060        9,786      50,149
                              ----------   ----------   ----------  ----------
        Total Income            487,023      483,084    1,457,722   1,451,656
                              ----------   ----------   ----------  ----------

EXPENSES:
   Partnership Administration -
     Affiliates                  51,937       85,477      189,037     228,755
   Partnership Administration
     and Property Management -
     Unrelated Parties           18,673        9,488       39,263      34,552
   Depreciation                  83,574       84,257      253,323     248,757
                              ----------   ----------   ----------  ----------
        Total Expenses          154,184      179,222      481,623     512,064
                              ----------   ----------   ----------  ----------

OPERATING INCOME                332,839      303,862      976,099     939,592

GAIN ON SALE OF REAL ESTATE      65,528        3,335       65,528      34,373
                              ----------   ----------   ----------  ----------
NET INCOME                   $  398,367   $  307,197   $1,041,627  $  973,965
                              ==========   ==========   ==========  ==========

NET INCOME ALLOCATED:
   General Partners          $    6,185   $   24,072   $   12,618  $   50,740
   Limited Partners             392,182      283,125    1,029,009     923,225
                              ----------   ----------   ----------  ----------
                             $  398,367   $  307,197   $1,041,627  $  973,965
                              ==========   ==========   ==========  ==========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (19,769, 20,011, 19,775 and
 20,092 weighted average Units
 outstanding for the periods,
 respectively)               $    19.84   $    14.15   $    52.04  $    45.95
                              ==========   ==========   ==========  ==========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                     STATEMENT OF CASH FLOWS

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)

                                                      2002            2001

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                    $ 1,041,627     $   973,965

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                     253,323         248,757
     Gain on Sale of Real Estate                      (65,528)        (34,373)
     (Increase) Decrease in Receivables                (1,294)         19,304
     Increase in Payable to
        AEI Fund Management, Inc.                      23,199          56,226
     Increase in Unearned Rent                         55,488          11,034
                                                   -----------     -----------
        Total Adjustments                             265,188         300,948
                                                   -----------     -----------
        Net Cash Provided By
        Operating Activities                        1,306,815       1,274,913
                                                   -----------     -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                               0        (350,796)
   Proceeds from Sale of Real Estate                  164,858         517,889
                                                   -----------     -----------
        Net Cash Provided By
        Investing Activities                          164,858         167,093
                                                   -----------     -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Decrease in Distributions Payable                   (2,532)         (2,966)
   Distributions to Partners                       (1,124,067)     (1,136,332)
   Redemption Payments                                (74,421)       (189,812)
                                                   -----------     -----------
        Net Cash Used For
          Financing Activities                     (1,201,020)     (1,329,110)
                                                   -----------     -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS             270,653         112,896

CASH AND CASH EQUIVALENTS, beginning of period        938,698       1,026,027
                                                   -----------     -----------
CASH AND CASH EQUIVALENTS, end of period          $ 1,209,351     $ 1,138,923
                                                   ===========     ===========

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

            STATEMENT OF CHANGES IN PARTNERS' CAPITAL

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)



                                                                    Limited
                                                                  Partnership
                             General      Limited                    Units
                             Partners     Partners      Total     Outstanding


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

  Distributions              (11,363)    (1,124,969)  (1,136,332)

  Redemption Payments         (1,898)      (187,914)    (189,812)    (210.37)

  Net Income                  50,740        923,225      973,965
                             ---------   -----------  -----------  ---------
BALANCE, September 30, 2001 $(20,660)   $13,400,978  $13,380,318   20,011.20
                             =========   ===========  ===========  =========


BALANCE, December 31, 2001  $      0    $13,183,466  $13,183,466   19,849.85

  Distributions              (11,241)    (1,112,826)  (1,124,067)

  Redemption Payments           (744)       (73,677)     (74,421)     (81.17)

  Net Income                  12,618      1,029,009    1,041,627
                             ---------   -----------  -----------  ---------
BALANCE, September 30, 2002 $    633    $13,025,972  $13,026,605   19,768.68
                             =========   ===========  ===========  =========


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

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2002

                           (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

                       SEPTEMBER 30, 2002
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the General Partners determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Partners and 1% to the General Partners  until  the
     Limited  Partners  receive an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 6%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash Flow; (ii) next, 99% to the Limited Partners
     and  1%  to the General Partners until the Limited  Partners
     receive  an  amount equal to 14% of their  Adjusted  Capital
     Contribution  per annum, cumulative but not  compounded,  to
     the  extent not previously distributed; (iii) next,  to  the
     General  Partners  until  cumulative  distributions  to  the
     General  Partners under Items (ii) and (iii)  equal  15%  of
     cumulative  distributions to all Partners under  Items  (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent,  Net  Cash Flow is distributed to the  Partners  for
     such year.  Any additional profits will be allocated 90%  to
     the  Limited  Partners and 10% to the General Partners.   In
     the  event  no Net Cash Flow is distributed to  the  Limited
     Partners,  90%  of each item of income, gain or  credit  for
     each  respective  year  shall be allocated  to  the  Limited
     Partners,  and 10% of each such item shall be  allocated  to
     the  General Partners.  Net losses from operations  will  be
     allocated 98% to the Limited Partners and 2% to the  General
     Partners.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with the Partnership Agreement as  follows:  (i)
     first,  to  those  Partners with deficit balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the Limited  Partners
     and  1%  to the General Partners until the aggregate balance
     in  the Limited Partners' capital accounts equals the sum of
     the Limited Partners' Adjusted Capital Contributions plus an
     amount  equal to 14% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated; (iii) third, to the General  Partners
     until  cumulative allocations to the General Partners  equal
     15%  of cumulative allocations.  Any remaining balance  will
     be  allocated  85% to the Limited Partners and  15%  to  the
     General  Partners.   Losses will be  allocated  98%  to  the
     Limited Partners and 2% to the General Partners.

     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2002
                           (Continued)

(3)  Investments in Real Estate -

     In   November  2000,  the  Lease  on  the  Taco  Fiesta   in
     Brownsville,  Texas  expired and  was  not  renewed  by  the
     tenant.   The  restaurant was closed and  listed  for  sale.
     While   the   property  was  vacant,  the  Partnership   was
     responsible  for  the  real estate  taxes  and  other  costs
     required  to  maintain the property.   In  March  2001,  the
     Partnership  entered into an agreement to sell the  property
     to  an  unrelated third party.  On June 7,  2001,  the  sale
     closed  with the Partnership receiving net sale proceeds  of
     $463,323, which resulted in a net gain of $18,628.   At  the
     time  of sale, the cost and related accumulated depreciation
     was $560,338 and $115,643.

     On  August  17,  2001, the Partnership sold 1.0366%  of  the
     Tumbleweed  restaurant in Chillicothe, Ohio to an  unrelated
     third party.  The Partnership received net sale proceeds  of
     $15,788,  which  resulted in a net gain of $3,335.   At  the
     time  of sale, the cost and related accumulated depreciation
     of the interest sold was $13,219 and $766, respectively.

     During  2002 and 2001, the Partnership sold 5.6627%  of  the
     Champps  Americana  restaurant in  Columbus,  Ohio,  in  two
     separate  transactions,  to unrelated  third  parties.   The
     Partnership  received total net sale proceeds  of  $203,636,
     which resulted in a net gain of $77,938.  The total cost and
     related  accumulated depreciation of the interests sold  was
     $145,273  and  $19,575, respectively.  For the  nine  months
     ended  September 30, 2002 and 2001, the net gain was $65,528
     and $12,410, respectively.

     During  the nine months ended September 30, 2002  and  2001,
     the  Partnership distributed $34,998 and $137,796 of the net
     sale proceeds to the Limited and General Partners as part of
     their  regular  quarterly distributions which represented  a
     return of capital of $1.75 and $6.80 per Limited Partnership
     Unit,  respectively.  The remaining net sale  proceeds  will
     either  be re-invested in additional property or distributed
     to the Partners in the future.

     On  June  30, 2000, the Partnership purchased a 24% interest
     in  a  parcel  of land in Alpharetta, Georgia for  $385,920.
     The  land  is  leased to Razzoo's, Inc. (RI) under  a  Lease
     Agreement with a primary term of 15 years and annual  rental
     payments  of  $32,803.   Effective November  26,  2000,  the
     annual  rent was increased to $37,627.  Simultaneously  with
     the  purchase  of the land, the Partnership entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced  funds  to RI for the construction  of  a  Razzoo's
     restaurant on the site.  Initially, the Partnership  charged
     interest  on  the  advances at a rate  of  8.5%.   Effective
     November  26,  2000 and January 31, 2001, the interest  rate
     was increased to 9.75% and 15.0%, respectively.  On July 11,
     2001,   after  the  development  was  completed,  the  Lease
     Agreement  was amended to require annual rental payments  of
     $88,735.   The Partnership's share of the total  acquisition
     costs,  including the cost of the land, was  $895,503.   The
     remaining  interests in the property are owned  by  AEI  Net
     Lease  Income  &  Growth Fund XIX Limited  Partnership,  AEI
     Income  &  Growth  Fund  23 LLC and AEI  Private  Net  Lease
     Millennium  Fund  Limited  Partnership,  affiliates  of  the
     Partnership.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2002
                           (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 nine months ended September 30, 2002 and 2001, the
Partnership   recognized   rental  income   of   $1,447,936   and
$1,401,507,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income  of  $9,786  and  $50,149,
respectively.  In 2002, rental income increased as  a  result  of
additional  rent received from one property acquisition  in  2001
and  rent  increases  on fourteen properties.   The  increase  in
rental  income  was partially offset by a decrease in  investment
income due to the Partnership receiving less interest income from
construction  advances  and having less money  invested,  due  to
property  acquisitions, at lower money market interest  rates  in
2002.

        In  November  2000,  the Lease  on  the  Taco  Fiesta  in
Brownsville,  Texas expired and was not renewed  by  the  tenant.
The  restaurant  was  closed  and listed  for  sale.   While  the
property was vacant, the Partnership was responsible for the real
estate  taxes and other costs required to maintain the  property.
In  March 2001, the Partnership entered into an agreement to sell
the  property to an unrelated third party.  On June 7, 2001,  the
sale  closed with the Partnership receiving net sale proceeds  of
$463,323, which resulted in a net gain of $18,628.  At  the  time
of  sale,  the  cost  and  related accumulated  depreciation  was
$560,338 and $115,643.

        During the nine months ended September 30, 2002 and 2001,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $189,037 and $228,755, 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  $39,263 and $34,552, 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  September 30, 2002, the Partnership's  annualized
cash  distribution rate was 7.0%, based on the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the  Partnership  Agreement.  As a result, 99%  of  distributions
were  allocated  to  Limited  Partners  and  1%  to  the  General
Partners.

        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  nine months ended September  30,  2002,  the
Partnership's  cash balances increased $270,653 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 $1,274,913 in 2001 to $1,306,815 in 2002 mainly as
a  result  of  an  increase in rental income and  a  decrease  in
Partnership administration expenses in 2002, which was  partially
offset  by  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 nine  months  ended
September  20,  2002  and  September 30,  2001,  the  Partnership
generated cash flow from the sale of real estate of $164,858  and
$517,889  respectively.  During the nine months  ended  September
30,  2001,  the Partnership expended $350,796 to invest  in  real
properties (inclusive of acquisition expenses) as the Partnership
reinvested cash generated from property sales.

        On  August 17, 2001, the Partnership sold 1.0366% of  the
Tumbleweed restaurant in Chillicothe, Ohio to an unrelated  third
party.   The  Partnership received net sale proceeds of  $15,788,
which resulted in a net gain of $3,335.  At the time of sale, the
cost  and  related accumulated depreciation of the interest  sold
was $13,219 and $766, respectively.

        During 2002 and 2001, the Partnership sold 5.6627% of the
Champps  Americana restaurant in Columbus, Ohio, in two  separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $203,636, which resulted in a
net  gain  of  $77,938.  The total cost and  related  accumulated
depreciation  of  the  interests sold was $145,273  and  $19,575,
respectively.  For the nine months ended September 30,  2002  and
2001, the net gain was $65,528 and $12,410, respectively.

        During the nine months ended September 30, 2002 and 2001,
the  Partnership distributed $34,998 and $137,796 of the net sale
proceeds  to  the Limited and General Partners as part  of  their
regular  quarterly distributions which represented  a  return  of
capital  of  $1.75  and  $6.80  per  Limited  Partnership   Unit,
respectively.  The remaining net sale proceeds will either be re-
invested in additional property or distributed to the Partners in
the future.


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

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $385,920.   The
land  is  leased  to Razzoo's, Inc. (RI) under a Lease  Agreement
with  a  primary term of 15 years and annual rental  payments  of
$32,803.   Effective  November 26,  2000,  the  annual  rent  was
increased  to $37,627.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement  under which the Partnership advanced funds to  RI  for
the   construction  of  a  Razzoo's  restaurant  on   the   site.
Initially, the Partnership charged interest on the advances at  a
rate  of 8.5%.  Effective November 26, 2000 and January 31, 2001,
the interest rate was increased to 9.75% and 15.0%, respectively.
On  July 11, 2001, after the development was completed, the Lease
Agreement  was  amended  to  require annual  rental  payments  of
$88,735.  The Partnership's share of the total acquisition costs,
including  the  cost  of the land, was $895,503.   The  remaining
interests  in  the property are owned by AEI Net Lease  Income  &
Growth Fund XIX Limited Partnership, AEI Income & Growth Fund  23
LLC   and   AEI   Private  Net  Lease  Millennium  Fund   Limited
Partnership, affiliates of the Partnership.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution rate from quarter to quarter.   Redemption  payments
are paid to redeeming Partners on a quarterly basis.

        The  Partnership may acquire Units from Limited  Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in  any  year  more than 5%  of  the  number  of  Units
outstanding at the beginning of the year.  In no event shall  the
Partnership  be  obligated to purchase  Units  if,  in  the  sole
discretion  of the Managing General Partner, such purchase  would
impair the capital or operation of the Partnership.

        On  January 1, 2002, twelve Limited Partners  redeemed  a
total  of  65.5 Partnership Units for $59,433 in accordance  with
the  Partnership  Agreement.  On April  1,  2002,  three  Limited
Partners redeemed a total of 11.67 Partnership Units for $10,624.
On  July  1,  2002, one Limited Partner redeemed a total  of  4.0
Partnership  Units  for $3,620.  The Partnership  acquired  these
Units  using  Net Cash Flow from operations.  In prior  years,  a
total of 201 Limited Partners redeemed 2,933.20 Partnership Units
for $2,404,447 in accordance with the Partnership Agreement.  The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

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


ITEM 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

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:  November 1, 2002      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)



                         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: November 1, 2002        /s/ Robert P Johnson
                                   Robert P. Johnson, President
                                   AEI Fund Management XVIII, Inc.
                                   Managing General Partner





                         CERTIFICATIONS

I, Mark E. Larson, 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: November 1, 2002       /s/ Mark E Larson
                                  Mark E. Larson, Chief Financial Officer
                                  AEI Fund Management XVIII, Inc.
                                  Managing General Partner