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:  June 30, 1998
                                
                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 June 30, 1998 and  December 31, 1997    

          Statements for the Periods ended June 30, 1998 and 1997:

             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
                                
               JUNE 30, 1998 AND DECEMBER 31, 1997
                                
                           (Unaudited)
                                
                             ASSETS
                                
                                                     1998            1997

CURRENT ASSETS:
  Cash and Cash Equivalents                      $ 2,796,274     $ 4,213,283
  Receivables                                         39,356          20,547
                                                  -----------     -----------
      Total Current Assets                         2,835,630       4,233,830
                                                  -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             5,021,358       3,970,611
  Buildings and Equipment                          8,160,728       8,160,729
  Construction in Progress                           522,495          43,208
  Property Acquisition Costs                         108,935          97,181
  Accumulated Depreciation                        (2,000,193)     (1,853,954)
                                                  -----------     -----------
                                                  11,813,323      10,417,775
  Real Estate Held for Sale                          372,980         372,980
                                                  -----------     -----------
      Net Investments in Real Estate              12,186,303      10,790,755
                                                  -----------     -----------
           Total Assets                          $15,021,933     $15,024,585
                                                  ===========     ===========


                       LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.           $    59,458     $    23,780
  Distributions Payable                              195,297         131,154
  Unearned Rent                                       58,415           5,000
                                                  -----------     -----------
      Total Current Liabilities                      313,170         159,934
                                                  -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                   (48,377)        (46,818)
  Limited Partners, $1,000 Unit Value;
   30,000 Units authorized; 22,783 Issued;
   21,326 and 21,487 Units outstanding in
   1998 and 1997, respectively                    14,757,140      14,911,469
                                                  -----------     -----------
      Total Partners' Capital                     14,708,763      14,864,651
                                                  -----------     -----------
        Total Liabilities and Partners' Capital  $15,021,933     $15,024,585
                                                  ===========     ===========

 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 JUNE 30
                                
                           (Unaudited)
                                

                               Three Months Ended          Six Months Ended
                             6/30/98        6/30/97     6/30/98        6/30/97
INCOME:
   Rent                    $  357,837     $  340,839   $  703,326   $  704,088
   Investment Income           57,392         51,941      117,453       86,606
                            ----------     ----------   ----------   ----------
        Total Income          415,230        392,780      820,779      790,694
                            ----------     ----------   ----------   ----------

EXPENSES:
   Partnership Administration - 
    Affiliates                 67,334         71,334      131,137      134,031
   Partnership Administration 
    and Property Management - 
    Unrelated Parties          17,431         24,126       34,428       49,747
   Depreciation                73,571         78,993      146,239      160,539
                            ----------     ----------   ----------   ----------
        Total Expenses        158,336        174,453      311,804      344,317
                            ----------     ----------   ----------   ----------

OPERATING INCOME              256,894        218,327      508,975      446,377

GAIN ON SALE OF REAL ESTATE         0              0            0      376,462
                            ----------     ----------   ----------   ----------
NET INCOME                 $  256,894     $  218,327   $  508,975   $  822,839
                            ==========     ==========   ==========   ==========

NET INCOME ALLOCATED:
   General Partners        $    2,570     $    2,183   $    5,090   $    8,228
   Limited Partners           254,324        216,144      503,885      814,611
                            ----------     ----------   ----------   ----------
                           $  256,894     $  218,327   $  508,975   $  822,839
                            ==========     ==========   ==========   ==========

NET INCOME PER
  LIMITED PARTNERSHIP UNIT
  (21,326, 21,764, 21,407 and 
  21,764 weighted average Units 
  outstanding for the periods, 
  respectively)            $    11.93     $     9.93   $    23.54   $    37.43
                            ==========     ==========   ==========   ==========
                                
                                
                                
 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 JUNE 30
                                
                           (Unaudited)
                                
                                                     1998             1997

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                   $   508,975      $   822,839

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                    146,239          160,539
     Gain on Sale of Real Estate                           0         (376,462)
     (Increase) Decrease in Receivables              (18,809)          10,656
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                     35,678         (116,687)
     Decrease in Security Deposit                          0             (665)
     Increase in Unearned Rent                        53,415           45,713
                                                  -----------      -----------
        Total Adjustments                            216,523         (276,906)
                                                  -----------      -----------
        Net Cash Provided By
        Operating Activities                         725,498          545,933
                                                  -----------      -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                     (1,541,787)               0
   Proceeds from Sale of Real Estate                       0        1,553,191
                                                  -----------      -----------
        Net Cash Provided By (Used For)
        Investing Activities                      (1,541,787)       1,553,191
                                                  -----------      -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                  64,143               51
   Distributions to Partners                        (534,599)        (667,383)
   Redemption Payments                              (130,264)               0
                                                  -----------      -----------
        Net Cash Used For
        Financing Activities                        (600,720)        (667,332)
                                                  -----------      -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS                              (1,417,009)       1,431,792

CASH AND CASH EQUIVALENTS, beginning of period     4,213,283        2,359,926
                                                  -----------      -----------
CASH AND CASH EQUIVALENTS, end of period         $ 2,796,274      $ 3,791,718
                                                  ===========      ===========


 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 JUNE 30
                                
                           (Unaudited)
                                
                                
                                
                                                                      Limited
                                                                    Partnership
                              General      Limited                    Units
                              Partners     Partners     Total      Outstanding


BALANCE, December 31, 1996   $ (49,658)  $14,630,232  $14,580,574    21,764.38

  Distributions                 (6,674)     (660,709)    (667,383)

  Net Income                     8,228       814,611      822,839
                               ---------   -----------  -----------  -----------
BALANCE, June 30, 1997       $ (48,104)  $14,784,134  $14,736,030    21,764.38
                              =========   ===========  ===========  ===========


BALANCE, December 31, 1997   $ (46,818)  $14,911,469  $14,864,651    21,487.28

  Distributions                 (5,346)     (529,253)    (534,599)

  Redemption Payments           (1,303)     (128,961)    (130,264)     (161.00)

  Net Income                     5,090       503,885      508,975
                              ---------   -----------  -----------  -----------
BALANCE, June 30, 1998       $ (48,377)  $14,757,140  $14,708,763    21,326.28
                              =========   ===========  ===========  ===========


 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
                                
                          JUNE 30, 1998
                                
                           (Unaudited)
                                

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

     AEI Real Estate Fund XVIII Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  AEI  Fund  Management XVIII, Inc.  (AFM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  AFM,  serves  as  the
     Individual General Partner of the Partnership.  An affiliate
     of   AFM,   AEI   Fund   Management,  Inc.,   performs   the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced  operations  on February  15,  1989  when  minimum
     subscriptions    of   1,500   Limited   Partnership    Units
     ($1,500,000)  were  accepted.   The  Partnership's  offering
     terminated  December  4,  1990 when  the  extended  offering
     period expired.  The Partnership received subscriptions  for
     22,783.05 Limited Partnership Units ($22,783,050).
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $22,783,050, and $1,000, respectively.  During the operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.   In the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those Partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate -

     The  Partnership  owned  a 4.1022%  interest  in  a  Sizzler
     restaurant  in  Cincinnati, Ohio, a 93.2478% interest  in  a
     Sizzler  restaurant in Springboro, Ohio, and a 100% interest
     in  a  Sizzler restaurant in Fairfield, Ohio.  In  November,
     1993,  after  reviewing the lessee's operating results,  the
     Partnership  determined that the lessee would be  unable  to
     operate  the  restaurants in a manner capable of  maximizing
     the  restaurants' sales.  Consequently, at the direction  of
     the  Partnership,  a multi-unit restaurant operator  assumed
     operation of the restaurants while the Partnership  reviewed
     the available options.  In January, 1994 and June, 1994, the
     Partnership   closed  the  restaurants  in  Cincinnati   and
     Springboro, respectively, and listed them for sale or lease.
     While  the  properties  were  vacant,  the  Partnership  was
     responsible  for  the  real estate  taxes  and  other  costs
     required to maintain the properties.
     
     No  rents were collected from the Sizzler restaurants in the
     first six months of 1998 and 1997.  The total amount of rent
     not  collected  in 1998 and 1997 was $91,840  and  $198,471,
     respectively, for the three properties.  These amounts  were
     not accrued for financial reporting purposes.
     
     On  January  23, 1997, the Partnership sold its interest  in
     the  Cincinnati restaurant to an unrelated third party.  The
     Partnership  received net sales proceeds of  $19,867,  which
     resulted in a net loss of $31,700, which was recognized as a
     real estate impairment in 1996.
     
     In  December,  1996,  the Partnership,  in  order  to  avoid
     additional property management expenses, decided to sell the
     Sizzler  properties in Springboro and Fairfield rather  than
     to  continue  to attempt to re-lease the properties.   As  a
     result,  the  properties were reclassified  on  the  balance
     sheet  to Real Estate Held for Sale.  In addition, based  on
     an  analysis  of  market conditions  in  the  area,  it  was
     determined that a sale of the properties would result in net
     proceeds of approximately $800,000.  The Partnership's share
     of  the  proceeds would be approximately $773,000.  A charge
     to  operations  for  real  estate impairment  of  $1,654,600
     ($693,500 for the Springboro Sizzler, and $961,100  for  the
     Fairfield  Sizzler) was recognized in the fourth quarter  of
     1996, which is the difference between book value at December
     31,  1996  of  $2,427,600  ($1,066,500  for  the  Springboro
     Sizzler  and $1,361,100 for the Fairfield Sizzler)  and  the
     estimated  market  value  of  $773,000  ($373,000  for   the
     Springboro Sizzler and $400,000 for the Fairfield  Sizzler).
     The  charge  was  recorded against the  cost  of  the  land,
     building and equipment.
     
     On  September  22,  1997, the Partnership sold  the  Sizzler
     restaurant  in Fairfield, Ohio to an unrelated third  party.
     The  Partnership  received net sale  proceeds  of  $528,476,
     which  is in excess of the book value of the property  after
     the recognition of the real estate impairment.  As a result,
     the Partnership recognized a net gain of $128,498.
     
     On  July 21, 1998, the Partnership sold its interest in  the
     Sizzler restaurant in Springboro, Ohio to an unrelated third
     party.   The  Partnership  received  net  sale  proceeds  of
     approximately $350,000, which resulted in a net loss on  the
     sale of approximately $21,000.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)

     In  August,  1995, the lessee of the two Rally's  properties
     filed  for  reorganization.  After reviewing  the  operating
     results  of the lessee, the Partnership agreed to amend  the
     Leases  of the two properties.  Effective December 1,  1995,
     the Partnership amended the Leases to reduce the annual base
     rent  from $47,498 and $48,392 to $15,000 for each property.
     The  Partnership could receive additional rent in the future
     equal  to 6.75% of the amount by which gross receipts exceed
     $275,000.   In 1997, the Leases, as amended, were  confirmed
     as  part of the reorganization plan.  The lessee has  agreed
     to  pay  all  pre-petition and post-petition  rents  due  of
     $75,775  and  the  Partnership's related administrative  and
     legal   expenses.   However,  due  to  the  uncertainty   of
     collection,  the Partnership has not accrued  any  of  these
     amounts for financial reporting purposes.
     
     As  of  December  31, 1997, based on an analysis  of  market
     conditions in the area, it was determined the fair value  of
     the  Rally's properties was approximately $270,000.  In  the
     fourth  quarter  of  1997, a charge to operations  for  real
     estate  impairment of $220,500 was recognized, which is  the
     difference  between the book value at December 31,  1997  of
     $490,500  and  the  estimated fair value of  $270,000.   The
     charge  was  recorded against the cost of the  building  and
     equipment.
     
     In February, 1996, the Partnership called a letter of credit
     for  $109,393  related  to  the Taco  Cabana  restaurant  in
     Brownsville,  Texas.  The Partnership applied the  funds  to
     satisfy  1996 rent income and real estate taxes  due  and  a
     portion of the real estate taxes due in 1997.  In 1997,  the
     Partnership  took possession of the property and  listed  it
     for  sale  or  lease.   The  Partnership  was  scheduled  to
     receive, but did not collect, $59,160 and $56,884 in rent in
     the  first six months of 1998 and 1997, respectively.  These
     amounts  were not accrued for financial reporting  purposes.
     While the property is vacant, the Partnership is responsible
     for  real  estate taxes and other costs required to maintain
     the property.
     
     As  of  December  31, 1997, based on an analysis  of  market
     conditions in the area, it was determined the fair value  of
     the Brownsville property was approximately $466,600.  In the
     fourth  quarter  of  1997, a charge to operations  for  real
     estate  impairment of $239,600 was recognized, which is  the
     difference  between the book value at December 31,  1997  of
     $706,200  and  the  estimated fair value of  $466,600.   The
     charge  was  recorded  against the  cost  of  the  land  and
     building.
     
     Through December 31, 1997, the Partnership sold 94.1709%  of
     the  Applebee's  restaurant  in  Destin,  Florida  in  seven
     separate  transactions  to  unrelated  third  parties.   The
     Partnership  received total net sale proceeds of  $1,413,627
     which  resulted in a total net gain of $481,379.  The  total
     cost  and  related accumulated depreciation of the interests
     sold was $1,053,565 and $121,317, respectively.  For the six
     months ended June 30, 1997, the net gain was $153,716.
     
     Through December 31, 1997, the Partnership sold 90.6301%  of
     a  Taco  Cabana  restaurant in San Antonio, Texas  in  seven
     separate  transactions  to  unrelated  third  parties.   The
     Partnership  received total net sale proceeds of  $1,520,182
     which  resulted in a total net gain of $562,654.  The  total
     cost  and  related accumulated depreciation of the interests
     sold was $1,043,983 and $86,455, respectively.  For the  six
     months ended June 30, 1997, the net gain was $69,649.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)

     Through December 31, 1997, the Partnership sold 77.4842%  of
     its  interest  in  the  Tractor Supply Company  in  Bristol,
     Virginia  in seven separate transactions to unrelated  third
     parties.   The Partnership received total net sale  proceeds
     of  $1,189,572  which  resulted  in  a  total  net  gain  of
     $217,301.    The   total   cost  and   related   accumulated
     depreciation of the interests sold was $997,602 and $25,331,
     respectively.  For the six months ended June 30,  1997,  the
     net gain was $72,607.
     
     Through December 31, 1997, the Partnership sold 26.0312%  of
     its   interest  in  the  Champps  Americana  restaurant   in
     Columbus,  Ohio in three separate transactions to  unrelated
     third  parties.   The Partnership received  total  net  sale
     proceeds of $807,777 which resulted in a total net  gain  of
     $151,139.    The   total   cost  and   related   accumulated
     depreciation of the interests sold was $667,813 and $11,175,
     respectively.  For the six months ended June 30,  1997,  the
     net gain was $80,490.
     
     During  the  first  six  months  of  1997,  the  Partnership
     distributed $60,467 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
     $2.75 per Limited Partnership Unit.
     
     On  July  30, 1997, the Partnership purchased a Fuddrucker's
     restaurant  in  Thornton,  Colorado  for  $1,405,771.    The
     property  is  leased  to Fuddrucker's, Inc.  under  a  Lease
     Agreement with a primary term of 20 years and annual  rental
     payments of $148,387.
     
     On  December  23, 1997, the Partnership purchased  a  23.95%
     interest in a parcel of land in Troy, Michigan for $361,889.
     The  land is leased to Champps Entertainment, Inc. (Champps)
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $25,332.  Effective June 20, 1998,
     the  annual  rent was increased to $37,998.   Simultaneously
     with  the purchase of the land, the Partnership entered into
     a   Development   Financing  Agreement   under   which   the
     Partnership   will  advance  funds  to   Champps   for   the
     construction of a Champps Americana restaurant on the  site.
     Through June 30, 1998, the Partnership had advanced $417,607
     for  the  construction  of  the property  and  was  charging
     interest  on  the advances at a rate of 7%.  Effective  June
     20,  1998,  the interest rate was increased to  10.5%.   The
     Partnership's  share of the total purchase price,  including
     the  cost  of  the  land, will be approximately  $1,077,750.
     After the construction is complete, the Lease Agreement will
     be   amended   to   require  annual   rental   payments   of
     approximately  $113,000.   The remaining  interests  in  the
     property  are  owned  by  AEI Real Estate  Fund  XV  Limited
     Partnership,  AEI Real Estate Fund XVII Limited Partnership,
     and   AEI  Net  Lease  Income  &  Growth  Fund  XIX  Limited
     Partnership, affiliates of the Partnership.
     
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(3)  Investments in Real Estate - (Continued)

     In  January, 1998, the Partnership entered into an agreement
     to  purchase  a  45% interest in a Tumbleweed restaurant  in
     Chillicothe,  Ohio.   On  April 13,  1998,  the  Partnership
     purchased its share of the land for $216,915.  The  land  is
     leased  to  Tumbleweed, LLC (TLLC) under a  Lease  Agreement
     with  a  primary term of 15 years and annual rental payments
     of  $18,438.  Simultaneously with the purchase of the  land,
     the   Partnership  entered  into  a  Development   Financing
     Agreement under which the Partnership will advance funds  to
     TLLC for the construction of a Tumbleweed restaurant on  the
     site.   Through June 30, 1998, the Partnership had  advanced
     $70,688  for  the  construction  of  the  property  and  was
     charging  interest on the advance at a rate  of  8.5%.   The
     Partnership's  share of the total purchase price,  including
     the cost of the land, will be approximately $610,650.  After
     the  construction is complete, the Lease Agreement  will  be
     amended  to  require annual rental payments of approximately
     $62,600.  The remaining interests in the property are  owned
     by the Individual General Partner and AEI Net Lease Income &
     Growth  Fund  XIX  Limited Partnership,  affiliates  of  the
     Partnership.
     
     In April, 1998, the Partnership entered into an agreement to
     purchase a Tumbleweed restaurant in Columbus, Ohio.  On  May
     1,  1998,  the Partnership purchased the land for  $503,832.
     The  land is leased to TLLC under a Lease Agreement  with  a
     primary  term  of  15  years and annual rental  payments  of
     $42,826.  Simultaneously with the purchase of the land,  the
     Partnership  entered into a Development Financing  Agreement
     under  which the Partnership will advance funds to TLLC  for
     the  construction of a Tumbleweed restaurant  on  the  site.
     Through  June 30, 1998, the Partnership had advanced $34,200
     for  the  construction  of  the property  and  was  charging
     interest  on  the  advances at a rate of  8.5%.   The  total
     purchase  price,  including the cost of the  land,  will  be
     approximately   $1,490,000.   After  the   construction   is
     complete,  the  Lease Agreement will be amended  to  require
     annual rental payments of approximately $153,000.
     
     In April, 1998, the Partnership entered into an Agreement to
     purchase an Old Country Buffet restaurant to be constrructed
     in  Northlake,  Illinois.  On May 18, 1998, the  Partnership
     purchased  the  land  for  $330,000.   The  Partnership   is
     charging  interest on the land at a rate of  10%  until  the
     building  is  completed.  The total purchase price  will  be
     approximately   $1,300,000.   After  the   construction   is
     complete, the Partnership will pay approximately $970,000 of
     the  construction costs.  The remainder of the  construction
     costs will be paid by the tenant.  The property is leased to
     OCB  Realty Co. under a Lease Agreement with a primary  term
     of  20  years  and  annual rental payments of  approximately
     $130,000, which begin after construction is completed.
     
     During   1997  and  the  first  six  months  of  1998,   the
     Partnership  incurred net costs of $134,364 related  to  the
     review  of potential property acquisitions.  Of these costs,
     $25,429  have  been  capitalized  and  allocated  to   land,
     building  and  equipment.  The remaining costs  of  $108,935
     have  been  capitalized  and will be allocated  to  property
     acquisitions in future periods.

                                
         AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                           (Continued)
                                
(4)  Payable to AEI Fund Management  -

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


ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the  six  months ended June 30, 1998 and  1997,  the
Partnership  recognized rental income of $703,326  and  $704,088,
respectively.   During the same periods, the  Partnership  earned
investment  income  of  $117,453 and $86,606,  respectively.   In
1998,  rental income decreased as a result of the property  sales
discussed  below.  The decrease in rental income  was  offset  by
additional rent received from four property acquisitions in  1997
and  1998,  rent  increases  on ten  properties,  and  additional
investment  income earned on the net proceeds from  the  property
sales.

        The  Partnership owned a 4.1022% interest  in  a  Sizzler
restaurant in Cincinnati, Ohio, a 93.2478% interest in a  Sizzler
restaurant in Springboro, Ohio, and a 100% interest in a  Sizzler
restaurant   in  Fairfield,  Ohio.   In  November,  1993,   after
reviewing   the  lessee's  operating  results,  the   Partnership
determined  that  the  lessee would  be  unable  to  operate  the
restaurants  in  a manner capable of maximizing the  restaurants'
sales.   Consequently,  at the direction of  the  Partnership,  a
multi-unit   restaurant  operator  assumed   operation   of   the
restaurants while the Partnership reviewed the available options.
In  January,  1994  and  June, 1994, the Partnership  closed  the
restaurants  in  Cincinnati  and  Springboro,  respectively,  and
listed them for sale or lease.  While the properties were vacant,
the  Partnership  was responsible for the real estate  taxes  and
other costs required to maintain the properties.

        No  rents were collected from the Sizzler restaurants  in
the  first six months of 1998 and 1997.  The total amount of rent
not  collected  in  1998  and  1997  was  $91,840  and  $198,471,
respectively, for the three properties.  These amounts  were  not
accrued for financial reporting purposes.

        On January 23, 1997, the Partnership sold its interest in
the  Cincinnati  restaurant  to an unrelated  third  party.   The
Partnership  received  net  sales  proceeds  of  $19,867,   which
resulted in a net loss of $31,700, which was recognized as a real
estate impairment in 1996.


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

        In  December,  1996, the Partnership, in order  to  avoid
additional  property  management expenses, decided  to  sell  the
Sizzler  properties in Springboro and Fairfield  rather  than  to
continue to attempt to re-lease the properties.  As a result, the
properties were reclassified on the balance sheet to Real  Estate
Held  for  Sale.   In  addition, based on an analysis  of  market
conditions  in  the area, it was determined that a  sale  of  the
properties   would  result  in  net  proceeds  of   approximately
$800,000.   The  Partnership's share of  the  proceeds  would  be
approximately $773,000.  A charge to operations for  real  estate
impairment  of  $1,654,600 ($693,500 for the Springboro  Sizzler,
and  $961,100  for the Fairfield Sizzler) was recognized  in  the
fourth  quarter  of  1996, which is the difference  between  book
value  at  December  31, 1996 of $2,427,600 ($1,066,500  for  the
Springboro Sizzler and $1,361,100 for the Fairfield Sizzler)  and
the   estimated  market  value  of  $773,000  ($373,000  for  the
Springboro Sizzler and $400,000 for the Fairfield Sizzler).   The
charge  was  recorded against the cost of the land, building  and
equipment.

        On  September 22, 1997, the Partnership sold the  Sizzler
restaurant  in Fairfield, Ohio to an unrelated third party.   The
Partnership received net sale proceeds of $528,476, which  is  in
excess of the book value of the property after the recognition of
the  real  estate  impairment.   As  a  result,  the  Partnership
recognized a net gain of $128,498.

       On July 21, 1998, the Partnership sold its interest in the
Sizzler  restaurant  in Springboro, Ohio to  an  unrelated  third
party.    The   Partnership  received  net   sale   proceeds   of
approximately $350,000, which resulted in a net loss on the  sale
of approximately $21,000.

        In August, 1995, the lessee of the two Rally's properties
filed  for reorganization.  After reviewing the operating results
of  the lessee, the Partnership agreed to amend the Leases of the
two  properties.   Effective December 1,  1995,  the  Partnership
amended  the  Leases to reduce the annual base rent from  $47,498
and  $48,392 to $15,000 for each property.  The Partnership could
receive  additional  rent in the future equal  to  6.75%  of  the
amount  by  which gross receipts exceed $275,000.  In  1997,  the
Leases,  as amended, were confirmed as part of the reorganization
plan.   The  lessee has agreed to pay all pre-petition and  post-
petition  rents  due  of  $75,775 and the  Partnership's  related
administrative  and  legal  expenses.   However,   due   to   the
uncertainty of collection, the Partnership has not accrued any of
these amounts for financial reporting purposes.

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

        In  February, 1996, the Partnership called  a  letter  of
credit  for  $109,393  related to the Taco Cabana  restaurant  in
Brownsville, Texas.  The Partnership applied the funds to satisfy
1996  rent income and real estate taxes due and a portion of  the
real  estate  taxes due in 1997.  In 1997, the  Partnership  took
possession of the property and listed it for sale or lease.   The
Partnership  was  scheduled  to receive,  but  did  not  collect,
$59,160  and $56,884 in rent in the first six months of 1998  and
1997, respectively.  These amounts were not accrued for financial
reporting   purposes.   While  the  property   is   vacant,   the
Partnership is responsible for real estate taxes and other  costs
required to maintain the property.


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

        As  of  December 31, 1997, based on an analysis of market
conditions in the area, it was determined the fair value  of  the
Brownsville property was approximately $466,600.  In  the  fourth
quarter  of  1997,  a  charge  to  operations  for  real   estate
impairment  of  $239,600 was recognized, which is the  difference
between  the book value at December 31, 1997 of $706,200 and  the
estimated  fair  value  of  $466,600.  The  charge  was  recorded
against the cost of the land and building.

        During  the six months ended June 30, 1998 and 1997,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $131,137 and $134,031, 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  $34,428 and $49,747, 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.  The  decrease
in  these expenses in 1998, when compared to 1997, is the  result
of  expenses incurred in 1997 related to the Sizzler and  Rally's
situations discussed above.

        As  of  June 30, 1998, the Partnership's annualized  cash
distribution  rate  was  6.1%,  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.

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the Partnership.  AEI is currently  analyzing  its
computer hardware and software systems to determine what, if any,
resources  need to be dedicated regarding Year 2000 issues.   The
Partnership  does  not  anticipate  any  significant  operational
impact  or  incurring material costs as a result of AEI  becoming
Year 2000 compliant.

Liquidity and Capital Resources

         During   the  six  months  ended  June  30,  1998,   the
Partnership's  cash  balances decreased $1,417,009  mainly  as  a
result of cash used to purchase additional properties.  Net  cash
provided by operating activities increased from $545,933 in  1997
to  $725,498  in  1998.  The increase was due to an  increase  in
income  and  a  decrease  in expenses in  1998,  and  net  timing
differences  in the collection of payments from the  lessees  and
the payment of expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  During the six months ended  June
30,  1997, the Partnership generated cash flow from the  sale  of
real estate of $1,553,191.  During the six months ended June  30,
1998,  the  Partnership expended $1,541,787  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)

        Through  December 31, 1997, the Partnership sold 94.1709%
of the Applebee's restaurant in Destin, Florida in seven separate
transactions   to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $1,413,627 which resulted  in
a  total  net  gain  of  $481,379.  The total  cost  and  related
accumulated depreciation of the interests sold was $1,053,565 and
$121,317, respectively.  For the six months ended June 30,  1997,
the net gain was $153,716.

        Through  December 31, 1997, the Partnership sold 90.6301%
of  a  Taco  Cabana  restaurant in San Antonio,  Texas  in  seven
separate   transactions   to  unrelated   third   parties.    The
Partnership received total net sale proceeds of $1,520,182  which
resulted  in  a total net gain of $562,654.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$1,043,983  and $86,455, respectively.  For the six months  ended
June 30, 1997, the net gain was $69,649.

        Through  December 31, 1997, the Partnership sold 77.4842%
of  its  interest  in  the  Tractor Supply  Company  in  Bristol,
Virginia  in  seven  separate  transactions  to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$1,189,572  which resulted in a total net gain of $217,301.   The
total  cost and related accumulated depreciation of the interests
sold  was $997,602 and $25,331, respectively.  For the six months
ended June 30, 1997, the net gain was $72,607.

        Through  December 31, 1997, the Partnership sold 26.0312%
of  its interest in the Champps Americana restaurant in Columbus,
Ohio  in  three separate transactions to unrelated third parties.
The  Partnership  received total net sale  proceeds  of  $807,777
which  resulted in a total net gain of $151,139.  The total  cost
and  related accumulated depreciation of the interests  sold  was
$667,813  and  $11,175, respectively.  For the six  months  ended
June 30, 1997, the net gain was $80,490.

        During  the  six  three months of 1997,  the  Partnership
distributed  $60,467 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 $2.75 per
Limited Partnership Unit.

       On July 30, 1997, the Partnership purchased a Fuddrucker's
restaurant in Thornton, Colorado for $1,405,771.  The property is
leased  to  Fuddrucker's, Inc. under a  Lease  Agreement  with  a
primary term of 20 years and annual rental payments of $148,387.

        On  December 23, 1997, the Partnership purchased a 23.95%
interest in a parcel of land in Troy, Michigan for $361,889.  The
land  is leased to Champps Entertainment, Inc. (Champps) under  a
Lease Agreement with a primary term of 20 years and annual rental
payments  of  $25,332.  Effective June 20, 1998, the annual  rent
was  increased to $37,998.  Simultaneously with the  purchase  of
the  land,  the Partnership entered into a Development  Financing
Agreement  under  which  the Partnership will  advance  funds  to
Champps for the construction of a Champps Americana restaurant on
the  site.   Through June 30, 1998, the Partnership had  advanced
$417,607  for  the construction of the property and was  charging
interest  on  the advances at a rate of 7%.  Effective  June  20,
1998,   the   interest  rate  was  increased   to   10.5%.    The
Partnership's  share of the total purchase price,  including  the
cost  of  the land, will be approximately $1,077,750.  After  the
construction is complete, the Lease Agreement will be amended  to
require  annual rental payments of approximately  $113,000.   The
remaining interests in the property are owned by AEI Real  Estate
Fund  XV  Limited Partnership, AEI Real Estate Fund XVII  Limited
Partnership, and AEI Net Lease Income & Growth Fund  XIX  Limited
Partnership, affiliates of the Partnership.


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

         In  January,  1998,  the  Partnership  entered  into  an
agreement  to purchase a 45% interest in a Tumbleweed  restaurant
in  Chillicothe,  Ohio.   On  April  13,  1998,  the  Partnership
purchased its share of the land for $216,915.  The land is leased
to  Tumbleweed, LLC (TLLC) under a Lease Agreement with a primary
term   of  15  years  and  annual  rental  payments  of  $18,438.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership will advance funds to TLLC for the construction of  a
Tumbleweed  restaurant on the site.  Through June 30,  1998,  the
Partnership  had  advanced $70,688 for the  construction  of  the
property  and was charging interest on the advance at a  rate  of
8.5%.   The  Partnership's  share of the  total  purchase  price,
including  the cost of the land, will be approximately  $610,650.
After  the construction is complete, the Lease Agreement will  be
amended  to  require  annual  rental  payments  of  approximately
$62,600.   The remaining interests in the property are  owned  by
the  Individual General Partner and AEI Net Lease Income & Growth
Fund XIX Limited Partnership, affiliates of the Partnership.

        In April, 1998, the Partnership entered into an agreement
to purchase a Tumbleweed restaurant in Columbus, Ohio.  On May 1,
1998, the Partnership purchased the land for $503,832.  The  land
is  leased to TLLC under a Lease Agreement with a primary term of
15  years  and annual rental payments of $42,826.  Simultaneously
with  the  purchase of the land, the Partnership entered  into  a
Development Financing Agreement under which the Partnership  will
advance  funds  to  TLLC  for the construction  of  a  Tumbleweed
restaurant  on the site.  Through June 30, 1998, the  Partnership
had advanced $34,200 for the construction of the property and was
charging  interest on the advances at a rate of 8.5%.  The  total
purchase  price,  including  the  cost  of  the  land,  will   be
approximately  $1,490,000.  After the construction  is  complete,
the  Lease  Agreement  will be amended to require  annual  rental
payments of approximately $153,000.

        In April, 1998, the Partnership entered into an Agreement
to  purchase  an Old Country Buffet restaurant to be constrructed
in  Northlake,  Illinois.   On  May  18,  1998,  the  Partnership
purchased  the  land for $330,000.  The Partnership  is  charging
interest  on  the  land at a rate of 10% until  the  building  is
completed.   The  total  purchase  price  will  be  approximately
$1,300,000.   After the construction is complete, the Partnership
will  pay approximately $970,000 of the construction costs.   The
remainder  of the construction costs will be paid by the  tenant.
The  property is leased to OCB Realty Co. under a Lease Agreement
with  a  primary term of 20 years and annual rental  payments  of
approximately   $130,000,  which  begin  after  construction   is
completed.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate  from  quarter to  quarter.   Prior  to  1998,
redemption payments were paid to redeeming Partners in the fourth
quarter  of  each  year.  Beginning in 1998, redemption  payments
will  be  paid to redeeming Partners on a quarterly  basis.   The
redemption  payments generally are funded with  cash  that  would
normally  be paid as part of the regular quarterly distributions.
As  a  result, total distributions and distributions payable have
fluctuated  from year to year due to cash used to fund redemption
payments.

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


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

       On April 1, 1998, six Limited Partners redeemed a total of
161.0  Partnership  Units for $128,961  in  accordance  with  the
Partnership  Agreement.   On  July  1,  1998,  nineteen   Limited
Partners  redeemed  a  total  of  199.0  Partnership  Units   for
$159,399.   The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years, a total  of  sixty-eight
Limited   Partners  redeemed  1,295.52  Partnership   Units   for
$1,028,771.   The  redemptions  increase  the  remaining  Limited
Partners' ownership interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash generated from the property sales, should be  adequate
to  fund  continuing  distributions and  meet  other  Partnership
obligations on both a short-term and long-term basis.
                                
Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

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

<bullet>  Market  and economic conditions which affect the  value
          of  the  properties the Partnership owns and  the  cash
          from rental income such properties generate;
       
<bullet>  the  federal income tax consequences of rental  income,
          deductions,  gain  on  sales and other  items  and  the
          affects of these consequences for investors;
       
<bullet>  resolution  by  the General Partners of conflicts  with
          which they may be confronted;
       
<bullet>  the   success  of  the  General  Partners  of  locating
          properties with favorable risk return characteristics;
       
<bullet>  the effect of tenant defaults; and
       
<bullet>  the condition of the industries in which the tenants of
          properties owned by the Partnership operate.
                                
                                
                   PART II - OTHER INFORMATION
                                
ITEM 1.LEGAL PROCEEDINGS

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

ITEM 2.CHANGES IN SECURITIES

      None.

                   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 -
                         Description

         10.1  Purchase  Agreement  dated  May  12,
               1998  between  the Partnership,  AEI  Real
               Estate  Fund 86-A Limited Partnership  and
               Unlimited Development, P.L.L. relating  to
               the  property  at  950 W. Central  Avenue,
               Springboro, Ohio.

         10.2  Assignment of Lease  dated  May  18,
               1998  between  the Partnership  and  Alpha
               Group,  LLC  relating to the  property  at
               North  Avenue  and  Wolf Road,  Northlake,
               Illinois.

         27    Financial Data Schedule  for  period
               ended June 30, 1998.

      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:  July 31, 1998         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)