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      March 31, 1999                    


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)
  
                                                                       
  
P. O. Box 50507, Nashville, TN  37205
(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          





                    U.S. REALTY INCOME PARTNERS L.P.

                                  INDEX



PART I      Financial Information


Item l.    Financial Statements                                    	  3

           Compilation Report                                      	  4
           
           Balance Sheets at March 31, 1999 and December               
           31, 1998                                                	  5
                
           Statements of Operations for the three months          
           ended March 31, 1999 and 1998                             6 
			                                                    
           Statements of Cash Flows for three months ended       
           March 31, 1999 and 1998                                  7  
 
     Statements of Partnership Equity for the period 
           January 1, 1998 through March 31, 1999             	  8
   
           Notes to Financial Statements                     	   9 - 10
               

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations               	  11 - 15

PART II    Other Information

Item 1.    Legal Proceedings                                       	 16

Item 2.    Changes in Securities                                    16

Item 3.    Default Upon Senior Securities                           16
                      
Item 4.    Submissions of Matters to a Vote of Security Holders     16
Item 5.    Other Information                                        16 

   
Item 6.    Exhibits and Reports on Form 8-K                         16

SIGNATURES                                                          17









                     PART I - FINANCIAL INFORMATION


ITEM 1.  Financial Statements

          The following balance sheet at March 31, 1999 (unaudited) and 
statements of operations, partnership equity, and cash flows for the 
three  months  ended March 31, 1999 (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 1998 Annual Report, as reported on Form 10-K.































                           OSBORNE & CO., P.C.
                    761 OLD HICKORY BLVD., SUITE 201
                          BRENTWOOD, TN  37027





To the Partners
U.S. Realty Income Partners L.P.
P. O. Box 58006
Nashville, TN  37205

We have compiled the accompanying balance sheet of U.S. Realty Income 
Partners L.P. (a limited partnership) as of September 30, 1998 and the 
related statements of operations, partnership equity, and cash flows 
for the three months then ended, in accordance with Statements on 
Standards for Accounting and Review Services issued by the American 
Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial 
statements information that is the representation of management.  We 
have not audited or reviewed the accompanying financial statements and, 
accordingly, do not express an opinion or any other form of assurance 
on them.

We are not considered to be independent with respect to U.S. Realty 
Income Partners L.P. according to Securities and Exchange Commission 
regulations.

The financial statements for the year ended December 31, 1997, were 
audited by other accountants, and they expressed an unqualified opinion 
on them in their report dated January 26, 1999, but they have not 
performed any auditing procedures since that date.


May 6, 1999


					
				            Osborne & Co., P.C 
						Certified Public Accountants




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

Balance Sheets


                                     Unaudited       Audited
                   ??                  March 31,    December 31,
                                        1999          1998     

             Assets

Cash				$  280,237	$  295,485

Tenant receivables     	75,971	32,901

Property & improvements, net of
	accumulated depreciation of
	$1,618,952 & $1,580,106	3,690,975	3,729,821

Investment in limited partnership	1,000	1,000

Other assets		   417,766	   413,928

	Total Assets	$ 4,465,949	$ 4,473,135

	Liabilities & Partnership Equity

Accounts payable	$     1,555	$       874

Accrued expenses	35,587	123,474

Notes payable 	    3,487,268	  3,505,577

	Total Liabilities	  3,524,410	  3,629,925

Minority partner's interest in JV	(123,191)	(130,529)

Partnership equity
	Gen. Partners, no units authorized	(183,140)	(187,690)
	Limited Partners, 4,858 units
		authorized, issued, 
		and outstanding	  1,247,870	  1,161,429

	Total Partnership Equity	    941,539	    843,210

	Total Liabilities & Partnership
		Equity	$ 4,465,949	$ 4,473,135







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

Statements of Operations

For the Three Months Ended
March 31, 1999 and 1998


	                             Unaudited          Unaudited
                                  3 Months           3 Months
                                     1999              1998    

Revenues
	Rental income	$   207,047	$   167,650
	CAM reimbursements	13,329	16,516
	Interest income	    2,556	   4,426

		222,932	188,592

Expenses
	Interest	87,450	88,721
	Professional fees	600	1,942
	Depreciation	38,846	38,858
	Amortization	4,072	2,607
	Property taxes	19,557	18,872
	Leasing & admin.	38,994	8,917
	Management fees	7,089	7,339
	Repairs	19,747	9,731
	Insurance	    4,283	    5,793

		  220,637	  182,780

Net income before minority partner's
	share of income	2,295	5,812

Minority partner's interest
	in operating profit	   (7,338)	   (2,644)

Inc (Loss) from operation	(5,043)	3,168

Income from investment
	in Joint Venture	   96,034	   47,344

Net Income (Loss)	$   90,991	$   50,512

Net Inc (Loss) per Unit          $    17.79        $     9.88

Weighted Average
	Number of Units	    4,858	    4,858







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

Statements of Cash Flows

                                            Unaudited  Unaudited
                                             3 Months   3 Months
                                              Ending     Ending
                                              3/31/99   3/31/98
Cash Flows From Operating Activities
	Net income (loss)	$ 90,991	$ 50,512
	Adjustments to reconcile net income (loss)
		to net cash provide by (used in)
		operating activities:
		Minority partner's interest in operating
			profit (loss) of consolidated 
			partnership	7,338	2,644
		Depreciation	38,846	38,858
		Amortization	4,072	2,607
		(Increase) decrease in:
			Tenant receivables	(43,071)	(26)
			Other assets	4,590	2,166
		Increase (decrease) in:
			Accounts payable	681	103
			Accrued expenses	(58,672)	(86,231)
			Accrued interest payable	(29,213)	0
			Tenant deposits	     0	   587
	Net cash provided by (used in)
		operating activities	15,562	11,220


Cash Flows From Financing Activities
	Receivable from joint venture	(12,500)	0
	Payments on mortgage note	 (18,310)	 (16,608)
	Net cash provided by (used in)
		financing activities	 (30,810)	 (16,608)

Net increase (decrease) in cash
	and cash equivalents	(15,248)	(5,388)

Cash & cash equivalents at beginning
	of period	 295,485	 477,135

Cash & cash equivalents at end of period	$280,237	$471,747

Supplemental Disclosures
	Interest paid	$ 87,450	$ 88,721





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

Statements of Partnership Equity

Period from January 1, 1998 to March 31, 1999



                                   Limited     General    
                                  Partners     Partner     Total


Distributive share of net earnings	95%	5%	100%

Balance at January 1, 1998	$1,229,647	$(184,100)	$1,045,547

Net loss	  (68,218)	  (3,590)	  (71,808)

Balance at December 31, 1998	1,161,429	(187,690)	973,739

Net income (loss)	   86,441	   4,550	   90,991

Balance at September 30, 1999	$1,247,870	$(183,140)	$1,064,730








                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                             March 31, 1999

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1998 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, 1999.

B.  INVESTMENT IN JOINT VENTURES

    The Partnership had a 50% interest in DR/US West End General
Partnership, a joint venture formed to own and operate a commercial 
office building in Nashville, Tennessee.  The Company's initial 
investment of $900,000 in the general partner joint venture was made on 
November 1, 1988.  Effective December 31, 1991, the Partnership adopted 
the liquidation method of accounting for its investment in the joint 
venture.  Accordingly, the basis has been held at $1,000 since December 
31, 1991.

Effective July 28, 1995, the partnership exchanged its interest in the 
assets of DR/US West End General Partnership (DR/US) for an indirect 
4.17% equity interest (held through a limited partnership interest in 
Daniel S. E. Office Limited Partnership) in Prudential/Daniel Office 
Venture, LLC (the LLC).  The LLC owns six office buildings (including 
the DR/US property) located in Nashville, Tennessee and Raleigh, North 
Carolina.  Management believes the fair value of the partnership's 
interest in the LLC approximates capital contributions recognized by 
the LLC (for the 4.17% interest) amounting to $1,361,445.  Such capital 
contributions were valued based on management's (unaudited) estimated 
values of the contributed properties.  







	U.S. REALTY INCOME PARTNERS L.P.

	(A LIMITED PARTNERSHIP)

	NOTES TO FINANCIAL STATEMENTS

	Unaudited
	March 31, 1999


C.  TRANSACTIONS WITH AFFILIATES

    Fees and other costs and expense paid to the general partner or its
affiliates were as follows:
                                       
                                  Three Months          Year Ended     
                                Ended March 31,         December 31,
                                     1999                  1998    
   
   Administrative expenses          $ 18,000             $ 36,000



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




                     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, 1998, the partnership had $295,485 in cash and 
cash equivalents.  This represents 6.08% of capital raised.  At March 
31, 1999, the Partnership had $280,237 in cash and cash equivalents.  
This represents 5.77% 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 working capital was reduced to allow the Partnership to pay costs 
associated with the DR/US refinancing.  In the event such reserves are 
insufficient to satisfy unanticipated costs, the Partnership will be 
required to borrow additional funds to meet such costs.  The General 
Partner does not anticipate having to borrow for working capital 
reserves in 1999.

          The General Partner has deemed it advisable not to make any 
cash distributions since May 1990.  The General Partner cannot 
determine whether any cash will be available for distribution until the 
Bellevue mortgage is refinanced.

                                    
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 was 
100% leased at the end of 1993 - 1996.  Lease rent from the tenants 
amounts to $48,367 per occupancy month.  In addition, the tenants pay 
common area maintenance charges of $5,881 per month for a total of 
$54,248 per month.

	On February 1, 1989, the joint venture obtained a $3,800,000 
first mortgage loan on this property from an unaffiliated lender.  The 
mortgage bears interest at a rate of 10% per annum and requires monthly 
installments of interest only through February 1, 1991.  Monthly debt 
service was $31,667 until March 1991 at which time monthly installments 
of principal and interest rose to $33,743.  The loan became due on 
February 1, 1997.  The mortgage holder,Mass Mutual, has continued to 
extend the mortgage.  A refinancing will occur when the vacant space






 is released and the pollution problem with Ted's Cleaners is resolved. 
 The State of Tennessee has promulgated rules and regulations 
pertaining to state wide pollution problems.  Ted's Cleaners has made 
application to the Industry "Super Fund" to obtain money to clean up 
the pollution.  The problem should be addressed this spring.  
Hopefully, there will be a final resolution this year.

	Haverty's moved from the center at the end of October, 1997.  We 
have reached an agreement with T. J. Maxx/Marshalls for 28,300 sq. ft.. 
Plans call for the store to open November 8, 1998. Our Partnership has 
completed work on the space which includes tear out, removal of 
existing fixtures, providing a separate meter, upgrading the electrical 
supply, and putting the HVAC in good working order.  The tenant was 
responsible for the completion of any work to make the space suitable 
for the tenant. As our Partnership does not have extensive reserves, 
the tenant has fronted the cost of this and the Partnership will repay 
the amount from the first two years lease payments.  The term of the 
lease is 10 years. Lease payments will yield approximately $50,000 more 
revenue to the Partnership each year after the first two years than 
received from the lease with Haverty's.  However, for the next two 
years, this center will only break even on a cash flow basis.  The 
Partnership has paid debt service on a current basis.


DR/US WEST END

	In November 1988, the Partnership acquired a 50% ownership 
interest in a joint venture known as DR/US West End General Partnership 
(the "Joint Venture") which owns an office building located in 
Nashville, Tennessee.  The Partnership's Joint Venture partner is 
Daniel West End Limited Partnership, the general partner of which is 
the Daniel Corporation (Daniel").  The property was 95% occupied at 
December 31, 1994, 1995 and 1996.  

	The partnership contributed 3310 West End office building to a 
new partnership in July 1995.  A major reason for this was we had one 
tenant, Gresham and Smith, leasing 65,000 square feet out of a total of 
107,000 square feet with their lease ending in 1998.  They terminated 
their lease and moved from the building.  However, the total space has 
been re-leased.

	Our contribution of 3310 in 1995 to the new partnership with 
Prudential Life Insurance paying off the mortgage was a wise decision. 
It now enables that partnership to have sufficient cash flow to pay 
their these costs.  If we had not made that change, our partnership 
would not have the cash flow to pay these expenses and the partnership 
would stand a good chance of losing the building.




Properties in Raleigh, NC

	These properties consist of one 110,000 sq. ft. building (Center 
98) and four sq. ft. buildings (Park).  These buildings are operating 
accounting to schedule.  Prudential Life Insurance Company has funded 
the partnership with approximately 7,280,000 to build a garage and a 
new 55,600 sq. ft. building which was completed at the end of 1998.  
Approximately 95% of this space has been already pre-leased.  The new 
parking garage will have 178 spaces.

	In the next couple of months a nationally known brokerage firm 
will be retained to determine the market value of the office buildings 
and secure any interest in the purchase of them.

	With the circumstances regarding the shopping center and the 
$1,000,000 payment due on the 3310 Office Building, it does not appear 
there will be any cash distribution in 1999 from operations.  However, 
if the study and interest regarding the office buildings prove 
positive, there is a possibility of one or more sales of the office 
buildings.  The Partnership would make distributions to the partners if 
this occurs.








                     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 three months ending March 31, 1999 are summarized 
below.

                                 Bellevue  Partnership    Total

Revenues	$222,044	$ 96,922	$318,966

Operating expenses	72,270	18,000	 90,270
Interest	87,450	-	 87,450
Depreciation & amortization	 40,310	  2,607	 42,917
		200,030	 20,607	220,637

Net income (loss)	22,014	76,315	98,329

Partnership share	                  66.67%	        100%	

Partnership net income	$ 14,676	$ 76,315	$ 90,991

Partnership operating
	cash flow	$(63,360)	$ 78,922	$ 15,562


		Operational results for the comparable three month period 
ended March 31, 1998 were:

                                 Bellevue  Partnership     Total

Revenues	$188,105	$ 47,831	$235,936

Operating expenses	52,594	-	 52,594
Interest	88,721	-	88,721
Depreciation & amortization	 38,858	  2,607	 41,465
		180,173	  2,607	182,780

Net income (loss)	7,932	45,224	53,156

Partnership share                  	66.23%	        100%

Partnership net income (loss)	$  5,288	$ 45,224	$ 50,512

Partnership operating
	cash flow	$(36,611)	$ 47,831	$ 11,220






				 


	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.



                       PART II - OTHER INFORMATION


ITEM 1.    Legal Proceedings

               None.

ITEM 2.    Changes in 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

                     None.
                                               
               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


May 7, 1999






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1


120
8

See Accountants' Compilation Report & Notes to Financial Statements.
17