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, 2001

                Commission file number:  0-18289


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


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


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

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


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

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

                        Yes  [X]   No

         Transitional Small Business Disclosure Format:

                        Yes        No  [X]




         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP


                              INDEX




PART I.Financial Information

Item 1. Balance Sheet as of September 30, 2001 and December 31, 2000

         Statements for the Periods ended September 30, 2001 and 2000:

           Income

           Cash Flows

           Changes in Partners' Capital

        Notes to Financial Statements

Item 2. Management's Discussion and Analysis

PART II.Other Information

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K



<PAGE>
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                          BALANCE SHEET

            SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                           (Unaudited)

                             ASSETS

                                                   2001          2000

CURRENT ASSETS:
  Cash and Cash Equivalents                    $ 1,138,923    $ 1,026,027
  Receivables                                          315         19,619
                                                -----------    -----------
      Total Current Assets                       1,139,238      1,045,646
                                                -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                           5,095,552      5,104,580
  Buildings and Equipment                       10,303,310      9,812,122
  Construction in Progress                               0        174,229
  Accumulated Depreciation                      (2,679,778)    (2,435,065)
                                                -----------    -----------
                                                12,719,084     12,655,866
  Real Estate Held for Sale                              0        444,695
                                                -----------    -----------
      Net Investments in Real Estate            12,719,084     13,100,561
                                                -----------    -----------
           Total  Assets                       $13,858,322    $14,146,207
                                                ===========    ===========



                     LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.         $    87,993    $    31,767
  Distributions Payable                            365,703        368,669
  Unearned Rent                                     24,308         13,274
                                                -----------    -----------
      Total Current Liabilities                    478,004        413,710
                                                -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                 (20,660)       (58,139)
  Limited Partners, $1,000 Unit Value;
    30,000 Units authorized; 22,783 Units issued;
    20,011 and 20,222 Units outstanding in 2001
    and 2000, respectively                      13,400,978     13,790,636
                                                -----------    -----------
      Total Partners' Capital                   13,380,318     13,732,497
                                                -----------    -----------
       Total Liabilities and Partners' Capital $13,858,322    $14,146,207
                                                ===========    ===========

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

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                               Three Months Ended     Nine Months Ended
                             9/30/01      9/30/00     9/30/01     9/30/00

INCOME:
   Rent                     $ 473,024   $ 472,751    $1,401,507   $1,421,311
   Investment Income           10,060      12,647        50,149       34,685
                             ---------   ---------    ----------   ----------
        Total Income          483,084     485,398     1,451,656    1,455,996
                             ---------   ---------    ----------   ----------

EXPENSES:
   Partnership Administration -
     Affiliates                85,477      70,935       228,755      198,772
   Partnership Administration
     and Property Management -
     Unrelated Parties          9,488       8,983        34,552       24,066
   Depreciation                84,257      89,019       248,757      277,881
                             ---------   ---------    ----------   ----------
        Total Expenses        179,222     168,937       512,064      500,719
                             ---------   ---------    ----------   ----------

OPERATING INCOME              303,862     316,461       939,592      955,277

GAIN ON SALE OF REAL ESTATE     3,335           0        34,373       26,670
                             ---------   ---------    ----------   ----------
NET INCOME                  $ 307,197   $ 316,461    $  973,965   $  981,947
                             =========   =========    ==========   ==========

NET INCOME ALLOCATED:
   General Partners         $  24,072   $   3,165    $   50,740   $    9,819
   Limited Partners           283,125     313,296       923,225      972,128
                             ---------   ---------    ----------   ----------
                            $ 307,197   $ 316,461    $  973,965   $  981,947
                             =========   =========    ==========   ==========

NET INCOME PER
  LIMITED PARTNERSHIP UNIT
  (20,011, 20,317, 20,092
  and 20,440 weighted average
  Units outstanding for the
  periods, respectively)    $   14.15   $   15.42    $    45.95   $    47.56
                             =========   =========    ==========   ==========


 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)

                                                        2001          2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net   Income                                    $   973,965   $   981,947

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                      248,757       277,881
     Gain on Sale of Real Estate                       (34,373)      (26,670)
     (Increase) Decrease in Receivables                 19,304        (7,977)
     Increase in Payable to
        AEI Fund Management, Inc.                       56,226        32,135
     Increase in Unearned Rent                          11,034        46,517
                                                    -----------   -----------
        Total Adjustments                              300,948       321,886
                                                    -----------   -----------
        Net Cash Provided By
        Operating Activities                         1,274,913     1,303,833
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                         (350,796)     (390,457)
   Proceeds from Sale of Real Estate                   517,889       730,550
                                                    -----------   -----------
        Net Cash Provided By
        Investing Activities                           167,093       340,093
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Increase (Decrease) in Distributions Payable        (2,966)       26,751
    Distributions to Partners                       (1,136,332)   (1,141,041)
    Redemption Payments                               (189,812)     (272,029)
                                                    -----------   -----------
        Net Cash Used For
          Financing Activities                      (1,329,110)   (1,386,319)
                                                    -----------   -----------
NET INCREASE IN CASH
AND CASH EQUIVALENTS                                   112,896       257,607

CASH AND CASH EQUIVALENTS, beginning of period       1,026,027       673,082
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $ 1,138,923   $   930,689
                                                    ===========   ===========


 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, 1999   $(53,696)  $14,230,457  $14,176,761    20,625.48

  Distributions               (11,410)   (1,129,631)  (1,141,041)

  Redemption Payments          (2,720)     (269,309)    (272,029)     (308.25)

  Net Income                    9,819       972,128      981,947
                              ---------  -----------  -----------  -----------
BALANCE, September 30, 2000  $(58,007)  $13,803,645  $13,745,638    20,317.23
                              =========  ===========  ===========  ===========


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


 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, 2001

                           (Unaudited)


(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI Real Estate Fund XVIII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management XVIII, Inc.  (AFM),  the  Managing
     General Partner.  Robert P. Johnson, the President and  sole
     shareholder of AFM, serves as the Individual General Partner
     and  an  affiliate of AFM, AEI Fund Management, Inc.  (AEI),
     performs the administrative and operating functions for  the
     Partnership.

     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  15,  1989  when  minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)   were   accepted.   The  offering   terminated
     December  4, 1990 when the extended offering period expired.
     The Partnership received subscriptions for 22,783.05 Limited
     Partnership Units ($22,783,050).

     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $22,783,050,  and $1,000, respectively.  During  operations,
     any  Net  Cash Flow, as defined, which the General  Partners
     determine  to  distribute will be  distributed  90%  to  the
     Limited  Partners and 10% to the General Partners; provided,
     however,  that  such distributions to the  General  Partners
     will be subordinated to the Limited Partners first receiving
     an annual, noncumulative distribution of Net Cash Flow equal
     to  10%  of their Adjusted Capital Contribution, as defined,
     and,  provided  further, that in no event will  the  General
     Partners  receive  less than 1% of such Net  Cash  Flow  per
     annum.   Distributions to Limited Partners will be made  pro
     rata by Units.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (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, 2001
                           (Continued)

(3)  Investments in Real Estate -

     In April, 2000, the Partnership entered into an Agreement to
     sell  the Pasta Fair restaurant in Belleview, Florida to  an
     affiliate  of the lessee.  On May 10, 2000, the sale  closed
     with   the  Partnership  receiving  net  sale  proceeds   of
     $730,550, which resulted in a net gain of $26,670.   At  the
     time  of sale, the cost and related accumulated depreciation
     was $932,862 and $228,982, respectively.

     In  December, 1998, Gulf Coast Restaurants, Inc. (GCR),  the
     lessee  of  the Applebee's restaurant in Slidell, Louisiana,
     filed  for reorganization.  GCR continued to make the  lease
     payments  to  the Partnership under the supervision  of  the
     bankruptcy court.  A reorganization plan was accepted by the
     bankruptcy court which provided for the Lease to be  assumed
     by  GCR  and assigned to another operator who purchased  the
     Partnership's  share  of the property.   The  reorganization
     plan  also provided for the Partnership to collect all rents
     outstanding  under the terms of the Lease.  On  October  25,
     2000,  the  sale closed with the Partnership  receiving  net
     sale  proceeds of $355,151, which resulted in a net gain  of
     $118,740.   At  the  time  of sale,  the  cost  and  related
     accumulated   depreciation   was   $280,019   and   $43,608,
     respectively.

     In   November  2000,  the  Lease  on  the  Taco  Fiesta   in
     Brownsville,  Texas  expired and  was  not  renewed  by  the
     tenant.   The  restaurant was closed and  listed  for  sale.
     While   the   property  was  vacant,  the  Partnership   was
     responsible  for  the  real estate  taxes  and  other  costs
     required  to maintain the property.  At December  31,  2000,
     the  property was reclassified on the balance sheet to  Real
     Estate  Held  for  Sale.   In March  2001,  the  Partnership
     entered  into  an  agreement to  sell  the  property  to  an
     unrelated  third  party.  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 May 24, 2001, the Partnership sold 1.1556% of the Champps
     Americana restaurant in Columbus, Ohio to an unrelated third
     party.   The  Partnership  received  net  sale  proceeds  of
     $38,778,  which resulted in a net gain of $12,410.   At  the
     time  of sale, the cost and related accumulated depreciation
     of the interest sold was $29,646 and $3,278, respectively.

     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  the  nine  months  ended  September  30,  2001,  the
     Partnership distributed $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  $6.80  per  Limited  Partnership  Unit.    The
     remaining  net  sale proceeds will either be re-invested  in
     additional  property or distributed to the Partners  in  the
     future.


         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001
                           (Continued)

(3)  Investments in Real Estate - (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.

(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

       For the nine months ended September 30, 2001 and 2000, the
Partnership   recognized   rental  income   of   $1,401,507   and
$1,421,311,   respectively.   During  the   same   periods,   the
Partnership  earned  investment income of  $50,149  and  $34,685,
respectively.   In  2001, rental income  decreased  mainly  as  a
result  of the property sales discussed below.  This decrease  in
rental  income  was  partially offset by rent received  from  one
property  acquisition  in  2000  and  rent  increases  on  twelve
properties.  In 2001, additional investment income was earned  on
the net proceeds from property sales.

       In December, 1998, Gulf Coast Restaurants, Inc. (GCR), the
lessee of the Applebee's restaurant in Slidell, Louisiana,  filed
for reorganization.  GCR continued to make the lease payments  to
the Partnership under the supervision of the bankruptcy court.  A
reorganization  plan was accepted by the bankruptcy  court  which
provided  for  the  Lease to be assumed by GCR  and  assigned  to
another  operator who purchased the Partnership's  share  of  the
property.   The  reorganization  plan  also  provided   for   the
Partnership to collect all rents outstanding under the  terms  of
the  Lease.   On  October  25, 2000, the  sale  closed  with  the
Partnership  receiving  net  sale  proceeds  of  $355,151,  which
resulted  in  a net gain of $118,740.  At the time of  sale,  the
cost  and  related  accumulated  depreciation  was  $280,019  and
$43,608, respectively.



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

        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.
At  December  31,  2000,  the property was  reclassified  on  the
balance  sheet to Real Estate Held for Sale.  In March 2001,  the
Partnership entered into an agreement to sell the property to  an
unrelated third party.  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, 2001 and 2000,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated parties of $228,755 and $198,772, 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  $34,552 and $24,066, 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  September 30, 2001, the Partnership's  annualized
cash  distribution rate was 7.0%, based on the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants due to inflation and real sales growth, will  result
in  an  increase  in rental income over the term of  the  Leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

Liquidity and Capital Resources

        During  the  nine months ended September  30,  2001,  the
Partnership's  cash balances increased $112,896 as  a  result  of
cash  generated  from the sale of property, which  was  partially
offset  by  cash  used to purchase property and  the  Partnership
distributed  more  cash to the Partners than  it  generated  from
operating  activities.  Net cash provided by operating activities
decreased  from $1,303,833 in 2000 to $1,274,913  in  2001  as  a
result  of  a  decrease in income and an increase in  Partnership
administration expenses in 2001, which were 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 30, 2001 and 2000, the Partnership generated cash  flow
from   the   sale  of  real  estate  of  $517,889  and  $730,550,
respectively.  During the same periods, the Partnership  expended
$350,796 and $390,457, respectively, to invest in real properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

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

        In April, 2000, the Partnership entered into an Agreement
to  sell  the Pasta Fair restaurant in Belleview, Florida  to  an
affiliate  of the lessee.  On May 10, 2000, the sale closed  with
the  Partnership  receiving net sale proceeds of $730,550,  which
resulted in a net gain of $26,670.  At the time of sale, the cost
and  related accumulated depreciation was $932,862 and  $228,982,
respectively.

        On  May  24,  2001, the Partnership sold 1.1556%  of  the
Champps  Americana restaurant in Columbus, Ohio to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$38,778, which resulted in a net gain of $12,410.  At the time of
sale,  the  cost  and  related accumulated  depreciation  of  the
interest sold was $29,646 and $3,278, respectively.

        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  the  nine months ended September  30,  2001,  the
Partnership distributed $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 $6.80  per
Limited  Partnership Unit.  The remaining net sale proceeds  will
either  be  re-invested in additional property or distributed  to
the Partners in the future.

       On June 30, 2000, the Partnership purchased a 24% interest
in  a  parcel  of land in Alpharetta, Georgia for $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.

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

        On January 1, 2001, ten Limited Partners redeemed a total
of  110.87 Partnership Units for $98,904 in accordance  with  the
Partnership Agreement.  On April 1, 2001, seven Limited  Partners
redeemed a total of 66.0 Partnership Units for $58,996.  On  July
1,   2001,  six  Limited  Partners  redeemed  a  total  of   33.5
Partnership  Units for $30,014.  The Partnership  acquired  these
Units  using  Net Cash Flow from operations.  In prior  years,  a
total of 167 Limited Partners redeemed 2,561.23 Partnership Units
for $2,070,702 in accordance with the Partnership Agreement.  The
redemptions  increase the remaining Limited  Partners'  ownership
interest in the Partnership.

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

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking statements" within the  meaning
of   federal   securities   laws  which  represent   management's
expectations  or  beliefs  concerning  future  events,  including
statements  regarding anticipated application of  cash,  expected
returns  from rental income, growth in revenue, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking statements made by the Partnership, must be evaluated  in
the   context  of  a  number  of  factors  that  may  affect  the
Partnership's  financial  condition and  results  of  operations,
including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    affects of these consequences for investors;

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

    the   success  of  the  General  Partners  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

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


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.

ITEM 2.CHANGES IN SECURITIES

      None.
                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      None.

ITEM 5.OTHER INFORMATION

      None.

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits - None.

       b. Reports filed on Form 8-K - None.


                           SIGNATURES

        In  accordance with the requirements of the Exchange Act,
the  Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


Dated:  October 23, 2001      AEI Real Estate Fund XVIII
                              Limited Partnership
                              By: AEI Fund Management  XVIII, Inc.
                              Its: Managing General Partner



                              By: /s/Robert P. Johnson
                                     Robert P. Johnson
                                     President
                                     (Principal Executive Officer)



                              By: /s/Mark E. Larson
                                     Mark E. Larson
                                     Chief Financial Officer
                                     (Principal Accounting Officer)