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, 1998


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 50507, 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, 1998 and December
           31, 1997                                                     	  5

           Statements of Partnership Equity for the period
           January 1, 1997 through June 30,1998                   		  6

           Statements of Operations for the three months
           and six months ended June 30,1998 and 1997                      7

           Statements of Cash Flows for the six months ended
           June 30, 1998 and 1997                                          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, 1998 (unaudited) and
statements of operations, partnership equity, and cash flows for the three
months and six months ended June 30, 1998 (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 1997
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 50507
Nashville, TN  37205

We have compiled the accompanying balance sheet of U.S. Realty Income Partners
L.P. (a limited partnership) as of June 30, 1998 and the related statements of
operations, partnership equity, and cash flows for the three months and six
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 27, 1998, but they have not performed any auditing
procedures since that date.

July 17, 1998



				            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,
                                             1998               1997
                  ASSETS

CASH                                      $  444,990        $  477,135

TENANT RECEIVABLES                             5,484             1,996

PREPAID ADMINISTRATIVE FEES

PROPERTY AND IMPROVEMENTS, net of
  accumulated depreciation of
  $1,502,391 and $1,424,675                3,807,536         3,885,251

INVESTMENT IN LIMITED PARTNERSHIP              1,000             1,000

OTHER ASSETS                                 246,533           256,080

     TOTAL ASSETS                         $4,505,543        $4,621,462


       LIABILITIES AND PARTNERSHIP EQUITY

ACCOUNTS PAYABLE                          $    1,805        $    1,187

ACCRUED EXPENSES                              53,776           120,548

NOTES PAYABLE                              3,527,681         3,557,105

     TOTAL LIABILITIES                     3,583,262         3,678,840

MINORITY PARTNER'S INTEREST IN JOINT
  VENTURE                                (   113,233)      (   102,925)

PARTNERSHIP EQUITY
  General Partners, no units authorized  (   184,602)      (   184,100)
  Limited Partners, 4,858 units
    authorized, issued, and outstanding    1,220,116         1,229,647

     TOTAL PARTNERSHIP EQUITY                922,281           942,622

  TOTAL LIABILITIES & PARTNERSHIP EQUITY  $4,505,543        $4,621,462


                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                    STATEMENTS OF PARTNERSHIP EQUITY

	Period from January 1, 1997 to June 30, 1998


                                      Limited     General
                                     Partners     Partner       Total

Distributive share of
  net earnings                         95%           5%          100%

Balance at January 1, 1997        $1,225,785    ($184,303)   $1,041,482

Net income                             3,862          203         4,065

Balance at December 31, 1997       1,229,647    ( 184,100)    1,045,547

Net income 				      ( 9,531)   (     502)  (    10,003)

Balance at June 30, 1998          $1,220,116    ($184,602)   $1,035,514





	U.S. REALTY INCOME PARTNERS L.P.

	(A LIMITED PARTNERSHIP)
	STATEMENTS OF OPERATIONS

	For the Three Months and Six Months Ended June 30, 1998 and 1997

                            Unaudited    Unaudited   Unaudited    Unaudited
                            3 Months     3 Months    6 Months     6 Months
                              1998         1997         1998         1997

Revenues
  Rental income             $ 115,569    $ 149,868 	$283,219	$ 342,062
  CAM reimbursements           15,881       30,921 	  32,396	   58,144
  Miscellaneous                   178          144 	     178	      144
  Interest income               5,274          958 	   9,700        1,798
                              136,902      181,891 	 325,494	  402,148
Expenses
  Interest                     88,412       59,780	 177,133 	  149,690
  Loan costs                        0            0 	       0	    1,500
  Professional fees            12,295           31       14,237	    3,057
  Depreciation                 38,858       38,845     	  77,715	   77,691
  Amortization                  2,607        2,607  	   5,214	    6,047
  Property taxes               18,872       17,012  	  37,745	   34,023
  Leasing & admin.             32,699       21,618  	  41,615	   35,768
  Management fees               4,781        6,394  	  12,120	   14,735
  Repairs                       8,934       10,755  	  18,665	   21,190
  Insurance                     2,941        2,515  	   8,734        7,538

                              210,398      159,557  	 393,179      351,239
Net Income Before
  Minority Partner's
    Share of Income         (  73,496)      22,334     ( 67,685)	   50,909

Minority Partner's
  Interest in
    Operating Profit           12,952   (    10,304)     10,308    (   24,581)

Income (Loss) from
  Operations                (  60,544)       12,030    ( 57,377)	    26,328

Income from Investment
  in Joint Venture                  0             0      47,344        30,709
Net Income (Loss)           ($ 60,544)    $ 12,030    ($10,033)    $  57,037
Net Income (Loss) per
  Unit                      ($  11.84)     $   2.35     ($ 1.96)    $   11.15

Weighted Average
  Number 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
                                             Six Months         Six Months
                                                Ending            Ending
                                           June 30, 1998    June 30, 1997


CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                           ($ 10,033)        $ 57,037
  Adjustments to reconcile net income (loss)
    to net cash provided by (used in)
    operating activities:
    Minority partner's interest in net loss
        of consolidated partnership           (  10,308)          24,581
      Depreciation                               77,715           77,691
      Amortization                                5,214            6,047
      (Increase) decrease in:
        Tenant receivables                    (   3,488)        (  2,041)
	  Other assets					 4,332			4,332
      Increase (decrease) in:
        Accounts payable                            618        (     888)
        Accrued expenses                      (  67,358)       (  34,024)
        Tenant Deposits                             587                0
 CASH FLOWS FROM INVESTING ACTIVITIES
   Net cash provided by (used in)             (   2,721)        132,735

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on mortgage note                   (  29,424)       (  19,026)

  NET CASH USED IN FINANCING ACTIVITIES       (  29,424)       (  19,026)

NET INCREASE (decrease) IN CASH/EQUIVALENTS   (  32,145)         113,709

CASH & CASH EQUIVALENTS AT BEGINNING PERIOD     477,135          291,829

CASH & CASH EQUIVALENTS AT END OF PERIOD      $ 444,990        $ 405,538

SUPPLEMENTAL DISCLOSURES:

  INTEREST PAID                               $ 177,133        $ 149,690










                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                              June 30, 1998

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1997 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, 1998.

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
	June 30, 1998


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,
                                     1998                  1997

   Administrative expenses          $ 22,500             $ 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, 1997, the partnership had $477,135 in cash and cash
equivalents.  This represents 9.08% of capital raised.  At June 30, 1998, the
Partnership had $444,990 in cash and cash equivalents.  This represents 9.2% 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 1998.

          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.  However, the lender has
extended the maturity date, with the expectation of additional extensions.  The
Partnership is currently negotiating refinancing this loan.  A refinancing will




occur when the vacant space is released and the pollution problem with Ted's
Cleaners is financed.  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. and the lease
has been negotiated.  Our Partnership will complete work on the space with
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 will be responsible for the completion of any work to make the space
suitable to the tenant.  As our Partnership does not have extensive reserves,
the tenant will front 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 have terminated their lease and are
moving from the building.

	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 should be completed by the end of 1998.  Approximately 25% 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.  	A report will be made when there is any
significant news.

	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 1998 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 six months ending June 30, 1998 are summarized below.

                          Bellevue         Partnership     Total

Revenues                  $324,266          $ 48,572      $372,838

Operating expenses         100,073            33,044       133,117
Interest                   177,133              -          177,133
Depreciation & amort.       77,715             5,214        82,929
                           354,921            38,258       393,179

Net income (loss)          (30,655)           10,314       (20,341)

Partnership share           66 2/3%              100%

Partnership net income   ($ 20,347)         $ 10,314     ($ 10,033)

Partnership Oper. cash
  flow                   ($ 17,275)         $ 14,554     ($  2,721)

          Operational results for the comparable six month period ended
June 30, 1997 were:
                          Bellevue         Partnership      Total

Revenues                  $401,220          $ 31,637      $432,857

Operating expenses          99,264            18,547       117,811
Interest                   149,690              -          149,690
Depreciation & amort.       78,524             5,214        83,738
                           327,478            23,761       351,239

Net income (loss)           73,742             7,876        81,618

Partnership share           66 2/3%              100%

Partnership net income
  (loss)                  $ 49,161          $  7,876      $ 57,037

Partnership Operating
  cash flow               $119,645          $ 13,090      $132,735




	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 7, 1998


















17