UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                            FORM 10-Q

        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

       For the quarterly period ended:  September 30, 2010

               Commission File Number:  000-18289

            AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
      (Exact name of registrant as specified in its charter)

      State of Minnesota                   41-1622463
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)        Identification No.)

    30 East 7th Street, Suite 1300, St. Paul, Minnesota 55101
             (Address of principal executive offices)

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

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

Indicate  by check mark whether the registrant (1) has 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.               [X] Yes   [ ] No

Indicate  by  check  mark  whether the registrant  has  submitted
electronically  and posted on its corporate  Web  site,  if  any,
every  Interactive Data File required to be submitted and  posted
pursuant  to Rule 405 of Regulation S-T (232.405 of this chapter)
during  the preceding 12 months (or for such shorter period  that
the registrant was required to submit and post such files).
                                                 [ ] Yes   [ ] No

Indicate  by  check  mark  whether  the  registrant  is  a  large
accelerated filer, an accelerated filer, a non-accelerated filer,
or  a  smaller reporting company.  See the definitions of  "large
accelerated  filer," "accelerated filer" and  "smaller  reporting
company" in Rule 12b-2 of the Exchange Act.

   Large accelerated filer [ ]     Accelerated filer [ ]

   Non-accelerated filer [ ]       Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell  company
(as  defined in Rule 12b-2 of the Exchange Act).  [ ] Yes [X] No


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                              INDEX


Part I - Financial Information

 Item 1. Financial Statements (unaudited):

         Statement of Net Assets Available for Liquidation
           as of September 30, 2010 and December 31, 2009

         Statement of Liquidating Activities for the
           Periods ended September 30, 2010 and 2009

         Notes to Financial Statements

 Item 2. Management's Discussion and Analysis of Financial Condition
           and Results of Operations

 Item 3. Quantitative and Qualitative Disclosures About Market Risk

 Item 4. Controls and Procedures

Part II - Other Information

 Item 1. Legal Proceedings

 Item 1A. Risk Factors

 Item 2. Unregistered Sales of Equity Securities and  Use  of Proceeds

 Item 3. Defaults Upon Senior Securities

 Item 5. Other Information

 Item 6. Exhibits

         Signatures

<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
        STATEMENT OF NET ASSETS AVAILABLE FOR LIQUIDATION
            SEPTEMBER 30, 2010 AND DECEMBER 31, 2009




                                                    2010            2009

ASSETS:
  Cash                                          $   727,290    $   850,895
  Investments in Real Estate                        620,600        648,600
                                                 -----------    -----------
          Total Assets                            1,347,890      1,499,495
                                                 -----------    -----------

LIABILITIES:
  Payable to AEI Fund Management, Inc.               14,362         11,739
  Distributions Payable                              42,929         42,929
  Unearned Rent                                           0          4,494
                                                 -----------    -----------
          Total Liabilities                          57,291         59,162
                                                 -----------    -----------
NET ASSETS (PARTNERS' CAPITAL) IN LIQUIDATION,
  including 18,957 Limited
  Partnership Units outstanding                 $ 1,290,599    $ 1,440,333
                                                 ===========    ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
               STATEMENT OF LIQUIDATING ACTIVITIES
               FOR THE PERIODS ENDED SEPTEMBER 30


                                Three Months Ended       Nine Months Ended
                                9/30/10      9/30/09    9/30/10      9/30/09
SOURCES OF ADDITIONAL CASH:
  Rent                        $   18,611  $   24,505  $   51,256   $   79,678
  Interest Income                  1,846       1,850       5,777        5,994
                               ----------  ----------  ----------   ----------
     Total Sources of
      Additional Cash             20,457      26,355      57,033       85,672
                               ----------  ----------  ----------   ----------
USES OF ADDITIONAL CASH:
  Partnership Administration -
    Affiliates                     1,165      13,068      27,033       43,175
  Partnership Administration
    and Property Management  -
    Unrelated Parties              3,087       1,931      24,169       12,824
  Expenses Related to
   Sale of Real Estate               648           0         648            0
  Distributions Paid to Partners  42,930      42,930     128,788      137,371
                               ----------  ----------  ----------   ----------
      Total Uses of
        Additional Cash           47,830      57,929     180,638      193,370
                               ----------  ----------  ----------   ----------
DECREASE IN NET ASSETS
  IN LIQUIDATION
   BEFORE ADJUSTMENTS            (27,373)    (31,574)   (123,605)    (107,698)
                               ----------  ----------  ----------   ----------
ADJUSTMENTS OF ESTIMATED VALUES:
  Change in Net Realizable values of:
     Real Estate                       0           0     (28,000)    (128,000)
     Payable to
      AEI Fund Management, Inc.  (10,285)       (481)     (2,623)      (4,826)
     Distributions Payable             0           0           0        8,583
     Unearned Rent                     0       2,092       4,494            0
                               ----------  ----------  ----------   ----------
      Total Adjustment of
         Estimated Values        (10,285)      1,611     (26,129)    (124,243)
                               ----------  ----------  ----------   ----------
DECREASE IN NET ASSETS
     IN LIQUIDATION              (37,658)    (29,963)   (149,734)    (231,941)

BEGINNING NET ASSETS
      IN LIQUIDATION           1,328,257   1,649,095   1,440,333    1,851,073
                               ----------  ----------  ----------   ----------
ENDING NET ASSETS
    IN  LIQUIDATION           $1,290,599  $1,619,132  $1,290,599   $1,619,132
                               ==========  ==========  ==========   ==========


 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, 2010

(1)  The  condensed  statements included herein have been  prepared
     by  the  registrant, 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  registrant
     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
     registrant's latest annual report on Form 10-K.

(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 director of  AFM,  serves  as  the
     Individual   General  Partner.   AFM  is  a   wholly   owned
     subsidiary  of AEI Capital Corporation of which Mr.  Johnson
     is  the  majority  shareholder.  AEI Fund  Management,  Inc.
     ("AEI"),  an  affiliate of AFM, performs the  administrative
     and operating functions for the Partnership.

     The   terms  of  the  Partnership  offering  called  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 l% 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)

(2)  Organization - (Continued)

     In  January 2009, the Managing General Partner solicited  by
     mail  a  proxy statement seeking the consent of the  Limited
     Partners,  as  required by Section 6.1  of  the  Partnership
     Agreement,  to  initiate the final disposition,  liquidation
     and  distribution of all of the Partnership's properties and
     assets  within  the next year.  On February  24,  2009,  the
     proposal  was  approved with a majority of  Units  voted  in
     favor  of  the proposal.  As a result, the Managing  General
     Partner  is proceeding with the planned liquidation  of  the
     Partnership.  At this time, the Partnership anticipates that
     it  will sell its remaining property and liquidate prior  to
     December 31, 2010.

     Financial Statement Presentation

       Because   liquidation  was  anticipated,  the  Partnership
       changed its basis of accounting after September 30,  2007,
       from  the  going  concern basis to the liquidation  basis.
       Effective  October 1, 2007, the Partnership  measures  its
       assets and liabilities at the amounts of cash expected  in
       liquidation  and  reports changes in estimates  when  they
       are   known.    The   accounts  of  the  Partnership   are
       maintained  on  the accrual basis of accounting  for  both
       federal   income  tax  purposes  and  financial  reporting
       purposes.

(3)  Investments in Real Estate -

     Effective  with  the  decision to  liquidate,  the  carrying
     amounts  of assets and liabilities were adjusted from  their
     historical bases to the amounts of cash expected from  their
     realization  and settlement.  Because of the expected  short
     liquidation period, the effects of discounting would not  be
     significant and have been ignored.  At September  30,  2010,
     the  estimated real estate values were based upon subsequent
     sales  of  three properties and comparable sales of  similar
     properties  for the other property.  At December  31,  2009,
     the  estimated real estate values were based upon comparable
     sales of similar properties.  It is reasonably possible that
     the  amounts  expected  to be realized  in  the  liquidation
     process may change in the near term.

     On  October  5,  2009, the Partnership  sold  its  remaining
     9.3699%  interest  in  the  Taco Cabana  restaurant  in  San
     Antonio, Texas to the tenant.  The Partnership received  net
     sale  proceeds  of  $158,406.  At  the  time  of  sale,  the
     estimated  net realizable value was $158,000.  At  June  30,
     2009,   based   on   the  signed  purchase  agreement,   the
     Partnership recognized an $18,000 adjustment to decrease the
     estimated net realizable value of the property.

     During  the  first  nine  months  of  2010  and  2009,   the
     Partnership  distributed net sale proceeds of  $121,086  and
     $103,939  to  the Limited and General Partners  as  part  of
     their quarterly distributions, which represented a return of
     capital  of  $6.32  and $5.43 per Limited Partnership  Unit,
     respectively.

         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     In   March  2009,  Tumbleweed,  Inc.,  the  tenant  of   the
     Tumbleweed restaurant in Chillicothe, Ohio filed for Chapter
     11  bankruptcy  reorganization.  In July  2009,  the  tenant
     contacted  the Partnership and offered to assume  the  Lease
     and  extend the Lease term five years in exchange for a  15%
     rent   reduction  for  a  five-year  period   beginning   on
     September 1, 2009.  The Partnership accepted this offer  and
     agreed  to  a  Lease Amendment, which was subject  to  court
     approval  of  the  tenant's  Plan  of  Reorganization.    In
     December  2009, the bankruptcy court approved  the  Plan  of
     Reorganization.   Under  the Plan,  Tumbleweed  assumed  the
     Lease  for  this  property and the  Lease  amendment  became
     effective.   On September 1, 2014, the rent will  revert  to
     the original amount due under the Lease.  As of the date  of
     this  report, Tumbleweed has complied with all Lease  terms.
     At  June 30, 2009, based on the proposed rent reduction  and
     an   analysis  of  market  conditions  in  the   area,   the
     Partnership recognized a $110,000 adjustment to decrease the
     estimated net realizable value of the property.

     In  April 2010, the Partnership signed a non-binding  letter
     of  intent to sell the Tumbleweed restaurant in Chillicothe,
     Ohio  to  an unrelated third party.  Based on the letter  of
     intent,  the Partnership recognized a $28,000 adjustment  to
     decrease  the estimated net realizable value of the property
     at March 31, 2010.  In August 2010, the parties entered into
     a  written  purchase agreement.  For the nine  months  ended
     September  30,  2010,  the  Partnership  incurred   expenses
     related  to  the sale of property of $648.  On  October  28,
     2010,  the  sale closed with the Partnership  receiving  net
     proceeds of approximately $480,000.

     On  October  5,  2010, the Partnership  sold  its  remaining
     0.7606%  interest in the Fuddruckers restaurant in Thornton,
     Colorado  to  an  unrelated third  party.   The  Partnership
     received  net  sale proceeds of approximately $4,000,  which
     was equal to the property's estimated net realizable value.

     On  October  5,  2010, the Partnership  sold  its  remaining
     7.5158%  interest  in the Tractor Supply store  in  Bristol,
     Virginia  to  an  unrelated third  party.   The  Partnership
     received net sale proceeds of approximately $121,600,  which
     was equal to the property's estimated net realizable value.

(4)  Payable to AEI Fund Management, Inc. -

     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 OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS.

        This  section contains "forward-looking statements" 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, the
sufficiency  of  cash  to  meet  operating  expenses,  rates   of
distribution,  and  other  matters.  These,  and  other  forward-
looking  statements,  should 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
    effects of these consequences for the Partners;

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

    the effect of tenant defaults; and

    the  condition of the industries in which the  tenants  of
    properties owned by the Partnership operate.

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.

        Effective  October 1, 2007, the Partnership  adopted  the
liquidation  basis  of  accounting because the  General  Partners
anticipated the liquidation of the Partnership during  2008.   In
accordance  with the liquidation basis of accounting, assets  are
recorded  at their estimated net realizable value (the amount  of
cash expected to be received) and liabilities are recorded at the
amount  estimated  to  be  paid to creditors  and  Partners.   At
September  30, 2010, the estimated real estate values were  based
upon subsequent sales of three properties and comparable sales of
similar properties for the other property.

        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  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.


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

Results of Operations

        For  the  nine months ended September 30, 2010 and  2009,
while in the liquidation phase, the Partnership recognized rental
income  of  $55,750 and $79,678, respectively.  In  2010,  rental
income  decreased mainly as a result of a property sale.   During
the  same periods, the Partnership recognized interest income  of
$5,777 and $5,994, respectively.

        For  the  nine months ended September 30, 2010 and  2009,
while   in   the  liquidation  phase,  the  Partnership  incurred
Partnership  administration expenses from affiliated  parties  of
$37,318 and $43,175, respectively.  These administration expenses
include  costs associated with the management of the  properties,
processing    distributions,    reporting    requirements     and
communicating  with the Limited Partners.  As  the  Partnership's
asset  base  decreases due to property sales, it is  allocated  a
smaller  share  of  expenses  that  are  allocated  by  AEI  Fund
Management, Inc. based on the relative assets of the funds  under
management.   During  the same periods, the Partnership  incurred
Partnership administration and property management expenses  from
unrelated  parties  of $16,507 and $17,650, respectively.   These
expenses represent direct payments to third parties for legal and
filing  fees,  direct administrative costs, outside audit  costs,
taxes, insurance and other property costs.

        In  March  2009,  Tumbleweed, Inc.,  the  tenant  of  the
Tumbleweed  restaurant in Chillicothe, Ohio filed for Chapter  11
bankruptcy  reorganization.  In July 2009, the  tenant  contacted
the  Partnership and offered to assume the Lease and  extend  the
Lease term five years in exchange for a 15% rent reduction for  a
five-year period beginning on September 1, 2009.  The Partnership
accepted  this offer and agreed to a Lease Amendment,  which  was
subject to court approval of the tenant's Plan of Reorganization.
In  December  2009,  the bankruptcy court approved  the  Plan  of
Reorganization.  Under the Plan, Tumbleweed assumed the Lease for
this  property  and  the Lease amendment  became  effective.   On
September  1,  2014, the rent will revert to the original  amount
due  under  the Lease.  As of the date of this report, Tumbleweed
has  complied with all Lease terms.  At June 30, 2009,  based  on
the  proposed rent reduction and an analysis of market conditions
in  the area, the Partnership recognized a $110,000 adjustment to
decrease the estimated net realizable value of the property.

       In April 2010, the Partnership signed a non-binding letter
of  intent to sell the Tumbleweed restaurant in Chillicothe, Ohio
to  an unrelated third party.  Based on the letter of intent, the
Partnership  recognized  a  $28,000 adjustment  to  decrease  the
estimated net realizable value of the property at March 31, 2010.
In  August  2010,  the parties entered into  a  written  purchase
agreement.   For the nine months ended September  30,  2010,  the
Partnership incurred expenses related to the sale of property  of
$648.   On October 28, 2010, the sale closed with the Partnership
receiving net proceeds of approximately $480,000.

       For the nine months ended September 30, 2010 and 2009, the
Partnership  recognized  adjustments  of  estimated   values   of
($26,129)  and  ($124,243),  respectively,  resulting  from   the
application of the liquidation basis of accounting and  recording
its  assets at estimated net realizable value and liabilities  at
the amount estimated to be paid.

         Management  believes  inflation  has  not  significantly
affected income from operations.


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

Liquidity and Capital Resources

       In January 2009, the Managing General Partner solicited by
mail  a  proxy  statement  seeking the  consent  of  the  Limited
Partners,   as  required  by  Section  6.1  of  the   Partnership
Agreement,  to  initiate the final disposition,  liquidation  and
distribution  of all of the Partnership's properties  and  assets
within  the  next year.  On February 24, 2009, the  proposal  was
approved with a majority of Units voted in favor of the proposal.
As  a result, the Managing General Partner is proceeding with the
planned  liquidation  of  the Partnership.   At  this  time,  the
Partnership anticipates that it will sell its remaining  property
and liquidate prior to December 31, 2010.

        During the nine months ended September 30, 2010, while in
the   liquidation  phase,  the  Partnership's   Net   Assets   in
Liquidation   decreased   $149,734  mainly   as   a   result   of
distributions  paid to the Partners in excess of  cash  generated
from  operating  activities and a decrease in the  estimated  net
realizable  value  of a property.  During the nine  months  ended
September   30,  2009,  while  in  the  liquidation  phase,   the
Partnership's Net Assets in Liquidation decreased $231,941  as  a
result  of distributions paid to the Partners in excess  of  cash
generated  from  operating  activities  and  a  decrease  in  the
estimated net realizable value of property.

        On  October  5, 2009, the Partnership sold its  remaining
9.3699%  interest in the Taco Cabana restaurant in  San  Antonio,
Texas  to the tenant.  The Partnership received net sale proceeds
of  $158,406.  At the time of sale, the estimated net  realizable
value  was  $158,000.   At June 30, 2009,  based  on  the  signed
purchase   agreement,  the  Partnership  recognized  an   $18,000
adjustment to decrease the estimated net realizable value of  the
property.

        On  October  5, 2010, the Partnership sold its  remaining
7.5158% interest in the Tractor Supply store in Bristol, Virginia
to  an unrelated third party.  The Partnership received net  sale
proceeds  of  approximately $121,600,  which  was  equal  to  the
property's estimated net realizable value.

        On  October  5, 2010, the Partnership sold its  remaining
0.7606%  interest  in  the  Fuddruckers restaurant  in  Thornton,
Colorado  to an unrelated third party.  The Partnership  received
net sale proceeds of approximately $4,000, which was equal to the
property's estimated net realizable value.

         One  of  the  Partnership's  primary  uses  of  cash  is
distribution 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.


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

       For the nine months ended September 30, 2010 and 2009, the
Partnership  declared distributions of $128,788 for each  period,
which were distributed 99% to the Limited Partners and 1% to  the
General Partners.  The Limited Partners received distributions of
$127,500  and  the  General  Partners received  distributions  of
$1,288 for each period.  During the first nine months of 2010 and
2009,  the Partnership distributed net sale proceeds of  $121,086
and $103,939 to the Limited and General Partners as part of their
quarterly distributions, which represented a return of capital of
$6.32 and $5.43 per Limited Partnership Unit, respectively.

        The  rent from the Partnership's remaining property  plus
the interest earned on its cash reserve will not be sufficient to
pay  the  Partnership's administrative expenses and the  property
management  expenses related to the properties.   Therefore,  the
Partnership will need to use a portion of its cash reserve to pay
these expenses until the property is sold and the Partnership  is
liquidated.  Future distributions declared, if any, prior to  the
final  liquidating distribution, will also be paid from the  cash
reserve.   The  cash  reserve should  be  adequate  to  meet  the
Partnership's obligations.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

       Not required for a smaller reporting company.

ITEM 4.   CONTROLS AND PROCEDURES.

       (a)  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  our  disclosure
controls  and procedures (as defined in Rule 13a-15(e) under  the
Securities  Exchange  Act of 1934 (the "Exchange  Act")).   Based
upon  that evaluation, the President and Chief Financial  Officer
of  the Managing General Partner concluded that, as of the end of
the  period  covered by this report, our disclosure controls  and
procedures  were effective in ensuring that information  required
to be disclosed by us in the reports that we file or submit under
the  Exchange Act is recorded, processed, summarized and reported
within  the time periods specified in applicable rules and  forms
and  that  such  information is accumulated and  communicated  to
management,  including the President and Chief Financial  Officer
of  the  Managing General Partner, in a manner that allows timely
decisions regarding required disclosure.

       (b)  Changes in Internal Control Over Financial Reporting.

        During  the  most recent period covered by  this  report,
there  has  been no change in our internal control over financial
reporting  (as defined in Rule 13a-15(f) under the Exchange  Act)
that  has  materially  affected,  or  is  reasonably  likely   to
materially affect, our internal control over financial reporting.


                   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 1A.  RISK FACTORS.

       Not required for a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

       (a) None.

       (b) Not applicable.

        (c) Pursuant to Section 7.7 of the Partnership Agreement,
as  amended, each Limited Partner has the right to present  Units
to  the  Partnership  for purchase by submitting  notice  to  the
Managing  General Partner.  The purchase price of  the  Units  is
equal to 90% of the net asset value per Unit as determined by the
Managing General Partner in accordance with the provisions of the
Partnership  Agreement.  Units tendered to  the  Partnership  are
redeemed  at  the purchase price established for the  quarter  in
which the Partnership received a notice at least 60 days prior to
the  repurchase  dates of January 1st, April 1st,  July  1st  and
October   1st   subject  to  the  following   limitations.    The
Partnership is not obligated to purchase in any year more than 5%
of  the number of Units outstanding at the beginning of the year.
In  no event shall the Partnership be obligated to purchase Units
if,  in the sole discretion of the Managing General Partner, such
purchase   would   impair  the  capital  or  operation   of   the
Partnership.   During  the period covered  by  this  report,  the
Partnership did not purchase any Units.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.

       None.

ITEM 5.   OTHER INFORMATION.

       None.

ITEM 6.   EXHIBITS.

    31.1  Certification  of Chief Executive  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2  Certification  of Chief Financial  Officer  of  General
    Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a))  and
    Section 302 of the Sarbanes-Oxley Act of 2002.

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


                           SIGNATURES

        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, the registrant has duly caused this report  to  be
signed   on   its  behalf  by  the  undersigned  thereunto   duly
authorized.


Dated:  November 10, 2010     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)