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

                                Form 10-Q


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

For the quarterly period ended                    September 30, 2004


Commission file number                                      33-17577



                   U.S. Realty Income Partners L.P.
    (Exact name of small business issuer as specified in its charter)


            DELAWARE                                       62-1331754
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                   (Identification No.)


 P.O. Box 58006, Nashville, TN                                 37205
(Address of principal executive offices)                   (Zip Code)


                            (615) 665-5959
          (Registrant's telephone number, including area code)




(Former name, former address and former fiscal year,
if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
                     YES    X          NO

	Indicate by check mark whether the registrant is an accelerated
filer (as defined by Exchange Act Rule 12b-2).

			   YES               NO     X






                     U.S. REALTY INCOME PARTNERS L.P.
                     (A Delaware Limited Partnership)
                                  INDEX



PART I	Financial Information

Item 1.	Financial Statements	                        3


	Balance Sheets at September 30, 2004 and
	December 31, 2003	                                    4

	Statements of Operations for the three months
	and nine months ended September 30, 2004
	and 2003	                                          5

	Statements of Cash Flows for nine months
	ended September 30, 2004 and 2003	                  6

	Notes to Financial Statements	                        7

Item 2.	Management's Discussion and Analysis of
	Financial Condition and Results of Operations	   8-11

Item 3.     Quantitative and Qualitative Disclosures
            about Market Risk                              12

Item 4.     Controls and Procedures                        12

PART II	Other Information

Item 1.	Legal Proceedings	                             13

Item 2.	Changes in Securities	                       13

Item 3.	Default Upon Senior Securities	           13

Item 4.	Submissions of Matters to a Vote of
	      Security Holders	                             13

Item 5.	Other Information	13

Item 6.	Exhibits and Reports on Form 8-K	           13

SIGNATURES		                                         14

	Certification of Principal Executive Officer
	and Chief Financial Officer under Securities
	Exchange Act Rules 13a-14 and 15d-14	        15-17









                     PART I - FINANCIAL INFORMATION


ITEM 1.  Financial Statements

          The following balance sheet at September 30, 2004 (unaudited) and
statements of operations for the three months and nine months ended September
30, 2004 and 2003 (unaudited) and statements of cash flows for the nine months
ended September 30, 2004 and 2003(unaudited), for U.S. Realty Income Partners
L.P. (a Delaware limited partnership) (the "Partnership"), have not been
examined by independent public accountants but reflect, in the opinion of
management, all adjustments (consisting of normal recurring accruals) necessary
to present fairly the information required.

         These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 2003 Annual
Report, as reported on Form 10-K.





































                    U.S Realty Income Partners, L.P.
                    (A Delaware Limited Partnership)
                      Consolidated Balance Sheets

                                      Unaudited          Audited
                                     September 30,      December 31,
                                          2004             2003

             Assets
Cash				              $  871,804	$  757,636

Escrow deposits	                        70,741	    18,477

Prepaid state taxes	                  12,514	       -

Tenant receivables     	                  79,802	     6,111

Property and improvements, net of
 accumulated depreciation of
 $2,511,409 and $2,386,374,
 respectively 	                     3,118,474	 3,219,610

Other assets		                 523,579	   595,004

	Total Assets	             $ 4,676,914     $ 4,596,838

	Liabilities and Partnership Equity
Accounts payable	                   $     8,432     $    15,373

Accrued expenses	                        74,338	    32,405

Note payable	 	               3,198,092	 3,357,658

	Total Liabilities	               3,280,862	 3,405,436

Minority partner's interest in
  joint venture	                       207,927	   121,240

Partnership equity
  General partners, no units
  authorized	                       (71,970)	   (77,869)
  Limited partners, 4,858 units
  authorized, issued, and outstanding  1,260,095	 1,148,031

	Net Partnership Equity	         1,188,125	 1,070,162

 Total Liabilities and Partnership
		Equity	             $ 4,676,914     $ 4,596,838

Note:  The balance sheet presented above at December 31, 2003 has
been derived from the audited financial statements at that date but
does not include all of the information and disclosures required by
accounting principles generally accepted in the United States of
America for complete financial statements.

               See Notes to Consolidated Financial Statements.


                      U.S. Realty Income Partners L.P.
                      (A Delaware Limited Partnership)

                    Consolidated Statements of Operations

                 For the Three Months and Nine Months Ended
                         September 30, 2004 and 2003

	                Unaudited    Unaudited  Unaudited  Unaudited
	                3 Months      3 Months    9 Months   9 Months
                       2004         2003        2004       2003
Revenues
	Rental income	$191,883	$182,064	$668,645	$659,100
	Common area
		maintenance	  21,998	  21,112	 122,176	 103,404
	Interest income	   1,027	   1,288	   2,900	   4,674

			       214,908	204,464	 793,721	 767,178

Expenses
	Interest	        59,926	 63,776	 181,388	 191,944
	Professional fees	   5,247	  7,500	  14,566	  23,578
	Depreciation	  41,678	 41,678	 125,035	 125,035
	Amortization	  18,049	 18,049	  54,146	  54,146
	Property taxes	  19,005	 19,005	  57,015	  57,015
	State taxes       	 0	      0	   4,729	     916
	Leasing and
		administrative31,387	 31,416	  90,631	  78,485
	Management fees	   7,165	  7,795	  28,035	  27,869
	Repairs and
		maintenance	   6,891	  5,539	  18,199	  20,080
	Insurance	         7,877	      0	   7,879	       0
	Utilities            1,916      2,284	   7,448	   7,104

			       199,141	197,042	 589,071	 586,172

Net income before
	minority partner's
	share of income	  15,767	  7,422	 204,650	 181,006

Minority partner's interest
	in operating profit(13,424) 	(11,429) 	 (86,687)	 (81,516)

Net Income (Loss)	    $    2,343   $ (4,007)   $ 117,963   $  99,490

Net Income (Loss)
     per Unit         $      .46   $   (.78)   $   23.07   $   19.46

Weighted Average
	Number of Units	  4,858	  4,858	  4,858	  4,858



                See Notes to Consolidated Financial Statements.


                      U.S. Realty Income Partners L.P.
                      (A Delaware Limited Partnership)
                   Consolidated Statements of Cash Flows

                                            Unaudited  Unaudited
                                            9 Months   9 Months
                                             Ending     Ending
                                             9/30/04    9/30/03
Cash Flows From Operating Activities
	Net income from operations	       $  117,963	$  99,490
	Adjustments to reconcile net income
		to net cash provided by (used in)
		operating activities:
		Minority partner's interest in operating
			profit of consolidated
			partnership	                86,687	   81,516
		Depreciation	               125,035	  125,035
		Amortization	                71,425	   71,425
		(Increase) decrease in:
			Escrow deposits	         (52,264)	  (62,042)
			Tenant receivables	   (73,691)	  (61,955)
			Prepaid state tax	         (12,514)	        0
		Increase (decrease) in:
			Accounts payable	          (6,941)	   (1,534)
			Accrued expenses	          41,933	   52,315
			Tenant deposits	               0	    1,000

		Net cash provided by (used in)
		operating activities	         297,633	  305,250

Cash Flows From Investing Activities
	Purchase of property and improvements  (23,899)  (110,560)

 Net cash used in
	investing activities	               (23,899)	 (110,560)

Cash Flows From Financing Activities
	Payments on mortgage note	        (159,566)	 (149,010)

	Net cash used in
		financing activities	        (159,566)  (149,010)

Net increase in cash
	and cash equivalents	               114,168	   45,680

Cash and cash equivalents at beginning
	of period	                           757,636	  814,043

Cash and cash equivalents at end
  of period	                              $  871,804 $  859,723

Supplemental Disclosures
	Interest paid	                 $  181,388  $  191,944


                   See Notes to Consolidated Financial Statements.




                    U.S. REALTY INCOME PARTNERS L.P.
                    (A Delaware Limited Partnership)

               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                Unaudited
                             September 30, 2004

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the
year ended December 31, 2003 for a description of the accounting
policies which have been continued without change.  Also, refer to
the footnotes of these annual statements for additional details of
the Partnership's financial condition.  The details in those notes
have not significantly changed except as a result of normal
transactions in the interim.  In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary have been included.  Operating results are not necessarily
indicative of the results that may be expected for the year ending
December 31, 2004.



B.  TRANSACTIONS WITH AFFILIATES

    Fees and other costs and expense paid to the general partner or
its affiliates were as follows:
                                      Nine Months
                                    Ended September 30,
                                    2004          2003

   Administrative expenses       $ 36,000      $ 36,300


      The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent
parties for similar services.

C.  NET INCOME PER UNIT

	In accordance with the partnership agreement, the limited
partners are allocated 95% of the net income of the partnership in
the relationship of units held to total units outstanding.










PART I - FINANCIAL INFORMATION
                                continued

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


Liquidity and Capital Resources

         At December 31, 2003, the partnership had $757,636 in cash
and cash equivalents.  This represents 15.6% of capital raised.  At
September 30, 2004, the Partnership had $871,804 in cash and cash
equivalents. This represents 17.9% of capital raised.  The
Partnership had established a working capital reserve of 5% of the
gross proceeds of the offering. After May 15, 1990, the Partnership's
Prospectus provided that the working capital reserve could be reduced
to 3% of capital raised depending upon the Partnership's experience
with its properties.  The General Partner does not anticipate having
to borrow for working capital reserves in 2004.

          The Partnership distributed $200,000 in December 2003. This
represented operating funds from Bellevue Plaza. The General Partner
is evaluating cash flow to determine whether cash distributions will
be made in 2004.


Bellevue

	In October 1988, the Partnership acquired a 66.67% interest in
a Tennessee joint venture known as Bellevue Plaza Partners holding as
its primary asset a shopping center located in Nashville, Tennessee
("Bellevue") which was renovated in 1988.  The Bellevue property is
100% leased. Lease rent from the tenants amounts to $61,641 per
occupancy month.  In addition to monthly rent, one tenant currently
pays 2.5% of their net profits annually which resulted in $110,442
collected during the nine months ended September 30, 2004. The
tenants also pay common area maintenance charges of $7,037 per month.


	On July 1, 1999, the joint venture obtained a $4,150,000 first
mortgage loan on this property from an unaffiliated lender.  The
mortgage bears interest at a rate of 7.25% per annum and requires
monthly installments of principal and interest of $37,884. The loan
fully amortizes over 15 years.  After paying off the previous debt,
the partnership had enough cash to pay for the improvements made to
the T. J. Maxx space.  These funds had previously been advanced by T.
J. Maxx to the Partnership.  This resulted in T. J. Maxx beginning
monthly rental payments in November of 1999.  T. J. Maxx/Marshalls
moved into the center in November 1999 as planned.  They occupy
28,300 square feet.  Due to the refinancing, payments from T. J. Maxx
have increased the gross cash flow from the center by approximately
$50,000 a year over the previous tenant.

In 2003, $110,560 was spent on capitalized roof repairs.  In 2004,
$23,899 has been spent on capitalized roof repairs.  The total cost
is expected to be $150,000.





                     PART I - FINANCIAL INFORMATION
                                continued


Results of Operations

		The Partnership holds a majority joint venture interests
in Bellevue Plaza Partners (66 2/3%).  The operational results of the
Partnership for the nine months ending September 30, 2004 are
summarized below.


                                 Bellevue  Partnership    Total

Revenues	                     $790,978	 $   2,742	  $ 793,721

Operating expenses	          178,168	    50,333	    228,502
Interest	                      181,388	       -	    181,388
Depreciation and amortization	    171,361	     7,820	    179,181
		                      530,917	    58,153	    589,071

Net income (loss)	                260,061	 (  55,411)	    204,650

Partnership share	                 66 2/3%	            100%

Partnership net income (loss)	  $ 173,374  $( 55,411)   $ 117,963

Partnership operation
	cash flow	              $ 345,224	 $( 47,590)	  $ 297,634


		Operational results for the comparable nine month period
ended September 30, 2003 were:


                                 Bellevue  Partnership     Total

Revenues	                     $762,773	 $   4,405	   $ 767,178

Operating expenses	          154,922	    60,124	     215,046
Interest	                      191,944	       -	     191,944
Depreciation and amortization	    171,361	     7,821	     179,182
		                      518,227	    67,945	     586,172

Net income (loss) 	          244,546	   (63,540)	     181,006

Partnership share                 66 2/3%	                   100%

Partnership net income (loss)   $ 163,030	 $ (63,540)	   $  99,490

Partnership operating
	cash flow	              $ 360,969	 $ (55,719)    $ 305,250









	The Partnership utilized the proceeds of the offering to
acquire, operate and hold for investment existing income producing
commercial real estate properties.  Since the proceeds of the
offering were less than the maximum amount, the Partnership was
unable to diversify its investments to the extent initially desired.



Financial Position

The primary changes in financial position from December 31, 2003 to
September 30, 2004 are as follows:

*	The increase in cash of $114,168 is due to cash from
operations of $297,633 net of debt repayments of $159,566 and
capitalized improvements of $23,899.
*	The decrease in property and improvements of $101,136 is
attributable to $125,035 of depreciation offset by capitalized
improvements of $23,899.
*	The decrease in the note payable of $159,566 is the result
of the debt amortization.
*	Partnership equity increased by the amount of earnings for
the nine month period of $117,963.
*	The increase in the minority partner's interest of $86,687
occurred from the partner's proportionate share of earnings in
the joint venture since December 31, 2003.
*	The increase in tenant receivables of $73,691 from December
31, 2003 to September 30, 2004, was attributable to the common
area maintenance billed in the second and third quarter
according to the lease agreements.
*	Escrow deposits increased $52,264 from December 31, 2003 to
September 30, 2004 as tenant payments for escrow items occur
monthly and the primary disbursements for escrow items occur in
the last quarter of the calendar year.
*	A decrease of $71,425 from December 31, 2003 to September
30, 2004 for other assets occurred as the result of periodic
amortization of capitalized lease related costs.



Results of Operations

The more significant changes in the results of operations  when
comparing the three months and nine months ended September 30, 2004
with the corresponding periods of 2003 are as follows:

*	For the three months ended September 30, 2004 as compared to
the three months ended September 30, 2003, the following are
the most significant changes in the results of operations:
*	Rental income decreased $5,816 or 3% as a result of a
credit given to one of the tenants for rent charged in
error.
*	The change in expenses for the current three month
period to that of the previous years three month period
was an increase of $6,163 or 4% and was primarily related
to increased professional fees and leasing and
administrative costs while being offset by a decline in
interest expense due to reduced borrowing levels from
continued debt amortization.

*	For the nine months ended September 30, 2004 as compared to
the nine months ended September 30, 2003, the following is the
most significant change in the results of operations:
*	Common area maintenance revenue increased in the first
half of 2004 over the corresponding period for 2003 by
$16,842 or 20%.  This increase was due in part to
increased billings related to recovery of additional
outlays for real property taxes and site maintenance in
accordance with the lease terms.





































Item 3:  Quantitative and Qualitative Disclosures about Market Risk

	As the partnership's debt has a fixed rate of interest, which
is the Partnership's primary financial instrument, quantitative and
qualitative risks are not deemed significant.


Item 4:  Controls and Procedures

      The Partnership maintains disclosure controls and procedures,
as defined in Rule 13a-15(e) promulgated under the Securities
Exchange Act of 1934 (the "Exchange Act") that are designed to insure
that information required to be disclosed by it in the reports that
it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified under the
SEC's rules and forms and that such information is accumulated and
communicated to the Partnership's management, including its Chief
Executive Officer and Chief Accounting Officer, as appropriate, to
allow timely decision making regarding required disclosure.  The
Partnership, under the supervision and participation of its
management, including the Partnership's Chief Executive Officer and
Chief Accounting Officer, carried out an evaluation of the
effectiveness of the design and operation of the Partnership's
disclosure controls and procedures as of the end of the period
covered by this report pursuant to the Exchange Act.  Based upon that
evaluation, the Chief Executive Officer and Chief Accounting Officer
concluded that the Partnership's disclosure controls and procedures
are effective in ensuring that all material information required to
be disclosed in this annual report has been accumulated and
communicated to them in a manner appropriate to allow timely
decisions regarding required disclosures.  During the quarter ended
September 30, 2004, there have been no changes in the Partnership's
internal control over financial reporting that have materially
affected or are reasonably likely to materially affect, the
Partnership's internal control over financial reporting.






















                         PART II - OTHER INFORMATION


ITEM 1.    Legal Proceedings

               None.

ITEM 2.	Changes in Securities, Use of Proceeds and Issuer
		Purchases of Equity Securities

               None.

ITEM 3.    Default 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

               1.  Exhibits

                   31  CEO and CFO Certification
		           Pursuant Rule 13a-14(a)/15d-A(a)

                   32  CEO and CFO Certification
                       Pursuant 18 USC, Section 1350
                       Sarbanes - Oxley Act 2002

               2.  Form 8-K.

                     None.






















                               SIGNATURES




     Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.


	                           U.S. REALTY INCOME PARTNERS L.P.
	                           By:  Vanderbilt Realty Joint Venture,
		                          The General Partner

	                           By:  Vanderbilt Realty Associates, Inc.
		                          Its Managing General Partner

	                           By:  s/n  Robert Bond Miller
		                          Robert Bond Miller
		                          President, Director, Chief
		                          Executive Officer, Chief Financial
		                          Officer and Chief Accounting
		                          Officer


November 5, 2004



























                               EXHIBIT 31


Certification of Principal Executive Officer and Chief Financial
Officer Under Securities Exchange Act Rules 13a-14 and 15d-14

I, Robert Bond Miller, certify that:
1)	I have reviewed this Quarterly Report on Form 10-Q of U.S.
Realty Income Partners, LP;
2)	Based on my knowledge, this quarterly report does not
contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made,
in light of the circumstances under which such statements
were made, not misleading with respect to the period covered
by this annual report;
3)	Based on my knowledge, the financial statements and other
financial information included in this quarterly report,
fairly present in all material respects the financial
condition, results of operations and cash flows of the
Registrant as, and for, the periods presented in this
quarterly report;
4)	I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules
13a-14 and 15d-14) for the Registrant and I have:
      1.	Designed such disclosure controls and procedures to
ensure that material information relating to the
Registrant is made known to us by others, particularly
during the period in which this quarterly report is
being prepared;
      2.	Evaluated the effectiveness of the Registrant's
disclosure controls and procedures as of a date within
45 days prior to the filing date of this quarterly
report ("Evaluation Date"); and
      3.	Presented in this quarterly report my conclusions
about the effectiveness of the disclosure controls and
procedures based on my evaluation as of the Evaluation
Date;
5)	I have disclosed, based on my most recent evaluation, to the
Registrant's auditors:
      1.	All significant deficiencies in the design and
operation of internal controls which could adversely
affect the Registrant's ability to record, process,
summarize and report financial data and have
identified for the Registrant's auditors any material
weaknesses in internal controls; and












      2.	Any fraud, whether or not material, that involves
management or other employees who have a significant
role in the Registrant's internal controls; and

6)  I have indicated in this quarterly report whether or ot
there were significant changes in internal controls or in other
factors that could significantly affect internal controls
subsequent to the date of the most recent evaluation, including
any corrective actions with regard to significant deficiencies
and material weaknesses.

	                        By:   /s/Robert Bond Miller___
November 5, 2004			      President, Director, Chief
                                    Executive Officer, Chief
                                    Financial Officer and Chief
       					Accounting Officer









































                                 EXHIBIT 32


Certification Pursuant to
18 USC Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002


In connection with the Quarterly Report of U.S. Realty Income
Partners, LP, (the "Partnership") on Form 10-Q for the period ending
September 30, 2004, as filed with the Securities and Exchange
Commission on the date hereof (the "Report"), I, Robert B. Miller,
President, Director, Chief Executive Officer, Chief Financial
Officer, and Chief Accounting Officer of the Partnership, certify,
pursuant to 18 USC Section 1350, as adopted pursuant to Section 906
of the Sarbanes-Oxley Act of 2002, that:

1.	The Report fully complies with the requirements of section
13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.	The information contained in the Report fairly presents, in
all material respects, the financial condition and result of
operations of the Partnership.



                                     By: /s/ Robert B. Miller______
			                       President, Director, Chief
						     Executive Officer, Chief
						     Financial Officer and Chief
						     Accounting Officer

Date:  November 5, 2004
















                                      17