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, 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 September 30, 2000 and
           December 31, 1999							  5

           Statements of Operations for the three months
           and nine months ended September 30, 2000 and 1999        6

     	     Statements of Cash Flows for nine months ended
     September 30, 2000 and 1999                             7

     Statements of Partnership Equity for the period
           January 1, 1999 through September 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 September 30, 2000 (unaudited)
and statements of operations, partnership equity, and cash flows for
the three  months and nine months ended September 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 September 30, 2000 and the
related statements of operations, partnership equity, and cash flows
for the three months and nine 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.


October 17, 2000



				            Osborne & Co., P.C
						Certified Public Accountants





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

Balance Sheets


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

             Assets

Cash				$  853,295	$  393,227

Escrow deposits	80,078	18,362

Tenant receivables     	6,580	21,127

Property & improvements, net of
	accumulated depreciation of
	$1,852,293 and $1,735,633	3,464,051	3,580,711

Investment in limited partnership	1,000	1,000

Other assets		   865,915	   935,038

	Total Assets	$ 5,270,919	$ 4,949,465

	Liabilities & Partnership Equity

Accounts payable	$       143	$       462

Accrued expenses	72,992	16,032

Notes payable 	    3,956,362	  4,075,341

	Total Liabilities	  4,029,497	  4,091,835

Minority partner's interest in JV	(126,937)	(136,680)

Partnership equity
	Gen. Partners, no units authorized	(167,958)	(186,661)
	Limited Partners, 4,858 units
		authorized, issued,
		and outstanding	  1,536,317	  1,180,971

	Total Partnership Equity	  1,368,359	    994,310

	Total Liabilities & Partnership
		Equity	$ 5,270,919	$ 4,949,465



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

Statements of Operations

For the Three Months & Nine Months Ended
September 30, 2000 and 1999

	                 Unaudited    Unaudited   Unaudited  Unaudited
	                 3 Months	     3 Months    9 Months   9 Months
	                   2000         1999        2000       1999
Revenues
	Rental income	$ 177,247	$ 166,684	$597,486  $ 529,683
	CAM reimbursements	24,963	14,544	72,532	43,378
	Interest income	  13,035	  1,247	 22,407	  5,523

			215,245	182,475	692,425	578,584

Expenses
	Interest	73,803	107,584	221,976	253,078
	Loan costs	0	40,000	0	40,000
	Professional fees	3,620	8,090	15,470	22,266
	Depreciation	38,887	38,846	116,660	116,537
	Amortization	17,833	4,072	53,710	12,215
	Property taxes	18,306	5,352	57,722	44,466
	Leasing & admin.	15,219	30,793	87,450	77,750
	Management fees	7,736	6,889	25,880	23,557
	Repairs	4,745	5,956	120,326	55,661
	Utilities	1,492	6,157	5,403	6,157
	Insurance	      0	    127	  1,473	  6,555

			181,641	253,866	706,070	658,242

Net income before minority partner's
	share of income	33,604	(71,391)	(13,645)	(79,658)

Minority partner's interest
	in operating profit	(9,266)	 14,630	 (9,743)	  5,905

Income (Loss) from
	operation	24,338	(56,761)	(23,388)	(73,753)

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

Net Income (Loss)	$ 24,338	$(56,761)	$374,049	$ 22,281

Net Income (Loss)
	per Unit           $    4.76    $ (11.10) $  73.15   $   4.36

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
                                             9 Months   9 Months
                                              Ending     Ending
                                              9/30/00   9/30/99
Cash Flows From Operating Activities
	Net income (loss) from operations	$ (23,388)	$ (73,753)
	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	9,743	(6,403)
		Depreciation	116,660	116,537
		Amortization	53,710	12,215
		(Increase) decrease in:
			Escrow deposits	(61,716)	0
			Tenant receivables	14,547	(113,848)
			Other assets	15,414	11,626
		Increase (decrease) in:
			Accounts payable	(319)	1,744
			Accrued expenses	54,918	(23,311)
			Accrued interest payable	0	(29,213)
			Tenant deposits	  2,041	      0
	Net cash provided by (used in)
		operating activities	181,610	(104,406)

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
	Proceeds from refinancing	0	4,150,000
	Escrow deposits	0	(400,000)
	Mortgage loan costs	0	(126,880)
	Receivable from joint venture	0	(12,377)
	Payments on mortgage note	(118,979)	(3,542,558)
	Net cash provided by (used in)
		financing activities	(118,979)	     68,185

Net increase (decrease) in cash
	and cash equivalents	460,068	59,813

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

Cash & cash equivalents at end of period	$853,295	$355,298
Supplemental Disclosures
	Interest paid	$221,976	$253,078




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

Statements of Partnership Equity

Period from January 1, 1999 to September 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	  355,346	  18,703	  374,049

Balance at September 30, 2000	$1,536,317	$(167,958)	$1,368,359









                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                            September 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
	September 30, 2000


C.  TRANSACTIONS WITH AFFILIATES

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

                                  Nine Month            Year Ended
                                  Ended September 30,      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
September 30, 2000, the Partnership had $853,295 in cash and cash
equivalents.  This represents 17.6% 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 nine months ending September 30, 2000 are
summarized below.

                                 Bellevue  Partnership    Total

Revenues	$675,331	$414,531	$1,089,862

Operating expenses	261,578	52,146	 313,724
Interest	221,976	-	 221,976
Depreciation & amortization	162,549	  7,821	170,370
		646,103	 59,967	706,070

Net income (loss)	29,228	354,564	383,792

Partnership share	                  66 2/3%	       100%

Partnership net income	$ 19,485 	$354,564	$374,049

Partnership operating
	cash flow	$216,662	$(35,052)	$181,610


		Operational results for the comparable nine month period
ended September 30, 1999 were:


                                 Bellevue  Partnership     Total

Revenues	$575,144	$ 99,474	$674,618

Operating expenses	218,852	57,561	 276,413
Interest	253,078	-	253,078
Depreciation & amortization	120,931	  7,821	128,752
		592,861	 65,382	658,243

Net income (loss) 	(17,717)	34,092	16,375

Partnership share                  	66.67%	        100%

Partnership net income	$(11,811)	$ 34,092	$ 22,281

Partnership operating
	cash flow	$(50,285)	$ 41,913	$ (8,372)









	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


November 8, 2000









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See Accountants' Compilation Report & Notes to Financial Statements.
10