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      June 30, 2000


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






                    U.S. REALTY INCOME PARTNERS L.P.

                                  INDEX



PART I     Financial Information


Item l.    Financial Statements                                    	  3

           Compilation Report                                      	  4

           Balance Sheets at June 30, 2000 and December 31, 1999	  5

           Statements of Operations for the three months
           and six months ended June 30, 2000 and 1999               6

           Statements of Cash Flows for six months ended June 30,
           2000 and 1999                                            7
     Statements of Partnership Equity for the period
           January 1, 1999 through June 30, 2000              	 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 June 30, 2000 (unaudited) and
statements of operations, partnership equity, and cash flows for the three
months and six months ended June 30, 2000 (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 1999
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 March 31, 2000 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, 1999, were audited by
other accountants, and they expressed an unqualified opinion on them in their
report dated January 25, 2000, but they have not performed any auditing
procedures since that date.


July 27, 2000



				            Osborne & Co., P.C
						Certified Public Accountants





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

Balance Sheets


                                     Unaudited       Audited
                   ??                  June 30,      December 31,
                                        2000          1999

             Assets

Cash				$  798,120	$  393,227

Escrow deposits	66,206	18,362

Tenant receivables     	1,954	21,127

Property & improvements, net of
	accumulated depreciation of
	$1,813,406 and $1,735,633	3,502,938	3,580,711

Investment in limited partnership	1,000	1,000

Other assets		   888,885	   935,038

	Total Assets	$ 5,259,103	$ 4,949,465

	Liabilities & Partnership Equity

Accounts payable	$       390	$       462

Accrued expenses	54,686	16,032

Notes payable 	    3,996,210	  4,075,341

	Total Liabilities	  4,051,286	  4,091,835

Minority partner's interest in JV	(136,203)	(136,680)

Partnership equity
	Gen. Partners, no units authorized	(169,175)	(186,661)
	Limited Partners, 4,858 units
		authorized, issued,
		and outstanding	  1,513,195	  1,180,971

	Total Partnership Equity	  1,344,020	    994,310

	Total Liabilities & Partnership
		Equity	$ 5,259,103	$ 4,949,465




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

Statements of Operations

For the Three Months & Six Months Ended
June 30, 2000 and 1999

	                Unaudited	    Unaudited	   Unaudited  Unaudited
	                3 Months	     3 Months    6 Months   6 Months
	                  2000         1999        2000       1999
Revenues
	Rental income	$ 176,614	$ 155,953	$420,239  $ 362,999
	CAM reimbursements	32,811	15,505	47,570	28,834
	Interest income	  4,860	  1,719	  9,372	  4,276

			214,285	173,177	477,181	396,109

Expenses
	Interest	73,725	58,043	148,172	145,493
	Professional fees	9,000	13,576	11,850	14,176
	Depreciation	38,887	38,846	77,774	77,691
	Amortization	17,829	4,072	35,878	8,143
	Property taxes	18,306	19,557	39,416	39,114
	Leasing & admin.	31,502	7,962	72,230	46,957
	Management fees	7,643	9,579	18,145	16,668
	Repairs	104,148	29,959	115,581	49,706
	Utilities	1,554	0	3,911	0
	Insurance	    737	  2,143	  1,474	  6,426

			303,331	183,737	524,431	404,374

Net income before minority partner's
	share of income	(89,046)	(10,560)	(47,250)	(8,265)

Minority partner's interest
	in operating profit	20,896	(1,387)	   (477)	  (8,725)

Income (Loss) from
	operation	(68,150)	(11,947)	(47,727)	(16,990)

Income from investment
	in Joint Venture	0	0	0	96,034
Income from
  	Partnerships	 397,437	      0	397,437	      0

Net Income (Loss)	$329,287	$(11,947)	$349,710	$ 79,044

Net Income (Loss)
	per Unit           $   64.39    $  (2.34) $  68.39   $  15.46

Weighted Avg. No.
	of Units	   4,858	   4,858	   4,858	   4,858
U.S. Realty Income Partners L.P.
(A Limited Partnership)

Statements of Cash Flows

                                            Unaudited  Unaudited
                                             6 Months   6 Months
                                              Ending     Ending
                                              6/30/00   6/30/99
Cash Flows From Operating Activities
	Net income (loss) from operations	$ (47,728)	$ (16,990)
	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	477	8,228
		Depreciation	77,774	77,691
		Amortization	35,878	8,143
		(Increase) decrease in:
			Escrow deposits	(47,844)	0
			Tenant receivables	19,173	(91,263)
			Other assets	10,276	9,180
		Increase (decrease) in:
			Accounts payable	(72)	60,799
			Accrued expenses	36,612	(39,115)
			Accrued interest payable	0	(29,213)
			Tenant deposits	  2,041	      0
	Net cash provided by (used in)
		operating activities	86,587	(12,540)

Cash Flows From Investing Activities
	Income from partnership	397,437	0
	Distribution from joint venture	      0	  96,034
	Net cash provided by (used in)
		investing activities	397,437	  96,034

Cash Flows From Financing Activities
	Mortgage loan costs	0	(125,700)
	Receivable from joint venture	0	(15,000)
	Payments on mortgage note	 (79,131)	 (27,751)
	Net cash provided by (used in)
		financing activities	 (79,131)	  (168,451)

Net increase (decrease) in cash
	and cash equivalents	404,893	(84,957)

Cash & cash equivalents at beginning
	of period	 393,227	 295,485

Cash & cash equivalents at end of period	$798,120	$210,528

Supplemental Disclosures
	Interest paid	$148,172	$145,493




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

Statements of Partnership Equity

Period from January 1, 1999 to June 30, 2000



                                   Limited     General
                                  Partners     Partner     Total


Distributive share of net earnings	95%	5%	100%

Balance at January 1, 1999	$1,161,429	$(187,690)	$  973,739

Net earnings of 1999	   19,542	   1,029	   20,571

Balance at December 31, 1999	1,180,971	(186,661)	994,310

Net earnings of 2000	  332,224	  17,486	  349,710

Balance at June 30, 2000	$1,513,195	$(169,175)	$1,344,020









                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                             June 30, 2000

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1999 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, 2000.

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.

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, which is controlled by Prudential Life Insurance Company of America, 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.  The LLC interest has been valued in
these financial statements at $1,000, the partnership's carrying value in the
DR/US investment.








	U.S. REALTY INCOME PARTNERS L.P.

	(A LIMITED PARTNERSHIP)

	NOTES TO FINANCIAL STATEMENTS

	Unaudited
	June 30, 2000


C.  TRANSACTIONS WITH AFFILIATES

    Fees and other costs and expense paid to the general partner or its
affiliates were as follows:

                                  Six Months           Year Ended
                          Ended March 31,       December 31,
                                     2000                  1999

   Administrative expenses          $ 36,000             $ 54,000


	Guarantee fees, which are related to the note payable, were paid to
affiliates in the amount of $40,000 in 1999.

      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, 1999, the partnership had $393,227 in cash and cash
equivalents.  This represents 8.08% of capital raised.  At June 30, 2000, the
Partnership had $798,120 in cash and cash equivalents.  This represents 16.4%
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
2000.

          The General Partner anticipates that a cash distribution will be
made in 2000.  The amount of the distribution is anticipated to be $400,000,
which represents proceeds from the sale of the 3310 West End property.


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 $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 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 $37,656. The loan fully amortizes over 15 years.
After paying off Mass Mutual, the partnership has 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 will increase the
gross cash flow from the center by approximately $50,000 a year over the
previous tenant.




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.





Properties in Raleigh, NC

	These properties consist of one 110,000 sq. ft. building (Center 98) and
four 50,000 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 leased.  The new parking garage will have 178 spaces.

	During early second quarter 1999, the partners of the Prudential/Daniel
Office Venture decided to investigate the potential for a sale of the entire
portfolio.  In April 1999 representatives of the partners toured the
properties and each partner submitted an independent list of potential
brokerage firms that could handle the sale of a $50 million portfolio located
in Raleigh and Nashville.  After the review of these lists, the partners
reduced the list to three qualified groups:  Trammell Crow Company, Cushman &
Wakefield and Rockwood Realty Associates.  All three groups made presentations
and were interviewed in Atlanta on May 12, 1999.  All three firms were asked
to make site visits and to value the portfolio.  Based on such indicators as
current work load/listings, national focus, regional market knowledge, past
performance and pricing, Rockwood was selected on June 16, 1999.

	During June and throughout July, Rockwood did an exhaustive review of
the properties and of the Raleigh and Nashville markets.  Introductory letters
were distributed to a list of 257 national, regional and local prospective
purchasers.  Forty-eight responded to the introductory letter, executed
confidentially agreements and then received the sales package prepared by
Rockwood with a portfolio price of $57,000,000.  During the month of September
on-site property inspections were coordinated for all of the interested
purchasers.  A call for offers was set for August 31.  Rockwood received seven
offers, two of which were for just Nashville or Raleigh.  The balance of the
six were for the entire portfolio.  The offers ranged from $43,000,000 to
$51,500,000 for the portfolio.  After analyzing the offers, the Lord Baltimore
Group was selected in late September at a price of $51,500,000.  Lord
Baltimore's investment committee rejected the purchase due to single market
exposure in Raleigh of 370,000 square feet (the Somerset Properties).  The
next highest offer for the entire portfolio was $49,400,000.  However, the
individual offers from two different prospective purchasers totaled
$50,500,000 and accordingly, the partnership accepted an offer for Raleigh at
$38,250,000 from Drucker and Faulk and for Nashville at $12,250,000 from
Highwood Properties.  Both of the purchasers agreed on these prices, but
failed to execute a purchase contract and terminated their respective interest
during the month of November.

	During December and January, Rockwood re-contracted the remaining
prospective purchasers who had made offers, as well as other groups who were
initially interested but did not make offers.

	However, in July 2000, the 3310 office property was sold.  The
partnerships share of the proceeds will be approximately $397,000.  These
proceeds will be distributed to the partners before the end of the year.










                     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 six months ending June 30, 2000 are summarized below.

                                 Bellevue  Partnership    Total

Revenues	$472,016	$402,602	$874,618

Operating expenses	213,976	48,631	 262,607
Interest	148,172	-	 148,172
Depreciation & amortization	108,437	  5,215	113,652
		470,585	 53,846	524,431

Net income (loss)	1,431	348,756	350,187

Partnership share	                  66 2/3%	        100%

Partnership net income	$    954 	$348,756	$349,710

Partnership operating
	cash flow	$130,053	$ (43,466)	$ 86,587


		Operational results for the comparable six month period ended
June 30, 1999 were:


                                 Bellevue  Partnership     Total

Revenues	$393,867	$ 98,276	$492,143

Operating expenses	141,579	31,468	 173,047
Interest	145,493	-	145,493
Depreciation & amortization	 80,620	  5,214	 85,834
		367,692	 36,682	404,374

Net income 	26,175	61,594	87,769

Partnership share                  	66.67%	        100%

Partnership net income	$ 17,450	$ 61,594	$ 79,044

Partnership operating
	cash flow	$ 16,686	$ 66,808	$ 83,494









	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


August 10, 2000








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1


1720
8

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