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, 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 June 30, 1999 and December
           31, 1998                                                	  5

           Statements of Operations for the three months
           and six months ended June 30, 1999 and 1998              6

           Statements of Cash Flows for the six months ended
           June 30, 1999 and 1998                                   7

     Statements of Partnership Equity for the period
           January 1, 1998 through June 30, 1999                    8


           Notes to Financial Statements                     	   9 - 10


Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations               	  11 - 14

PART II    Other Information

Item 1.    Legal Proceedings                                       	 15

Item 2.    Changes in Securities                                    15

Item 3.    Default Upon Senior Securities                           15

Item 4.    Submissions of Matters to a Vote of Security Holders     15

Item 5.    Other Information                                        15

Item 6.    Exhibits and Reports on Form 8-K                         15

SIGNATURES                                                          16







                     PART I - FINANCIAL INFORMATION


ITEM 1.  Financial Statements

          The following balance sheet at June 30, 1999 (unaudited) and
statements of operations, partnership equity, and cash flows for the
three  months  and six months ended June 30, 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 June 30, 1999 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, 1998, 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.


June 23, 1999



				            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,
                                        1999          1998

             Assets

Cash				$  210,528	$  295,485

Tenant receivables                     124,164		32,901

Property & improvements, net of
	accumulated depreciation of
	$1,657,797 & $1,580,106	3,652,130	3,729,821

Investment in limited partnership	1,000	1,000

Other assets		   537,303	   413,928

	Total Assets	$ 4,525,125	$ 4,473,135

	Liabilities & Partnership Equity

Accounts payable	$    61,673	$       874

Accrued expenses	55,145	123,474

Notes payable 	    3,477,825	  3,505,577

	Total Liabilities	  3,594,643	  3,629,925

Minority partner's interest in JV	(122,301)	(130,529)

Partnership equity
	Gen. Partners, no units authorized	(183,738)	(187,690)
	Limited Partners, 4,858 units
		authorized, issued,
		and outstanding	  1,236,521	  1,161,429

	Total Partnership Equity	    930,482	    843,210

	Total Liabilities & Partnership
		Equity	$ 4,525,125	$ 4,473,135







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

Statements of Operations

For the Three Months and Six Months Ended
June 30, 1999 and 1998


                        Unaudited   Unaudited   Unaudited   Unaudited
                        3 Months    3 Months    6 Months    6 Months
                            1999       1998        1999        1998

Revenues
	Rental income	$ 155,953	$ 115,569	$ 362,999	$ 283,219
	CAM reimbursements	15,446	15,881	28,775	32,396
	Miscellaneous	59	178	59	178
	Interest income	  1,719	   5,274	   4,276	   9,700

		173,177	136,902	396,109	325,494

Expenses
	Interest	58,043	88,412	145,493	177,133
	Professional fees	13,576	12,295	14,176	14,237
	Depreciation	38,846	38,858	77,691	77,715
	Amortization	4,072	2,607	8,143	5,214
	Property taxes	19,557	18,872	39,114	37,745
	Leasing & admin.	7,962	32,699	46,957	41,615
	Management fees	9,579	4,781	16,668	12,120
	Repairs	29,959	8,934	49,706	18,665
	Insurance	   2,143	   2,941	   6,426	   8,734

		 183,737	 210,398	 404,374	 393,179

Net income before minority partner's
	share of income	(10,560)	(73,496)	(8,265)	(67,685)

Minority partner's interest in
	operating profit	  (1,387)	  12,952	  (8,725)	  10,308

Inc (Loss) from operation	(11,947)	(60,544)	(16,990)	(57,377)

Income from investment in
	Joint Venture	       0	       0	  96,034	  47,344

Net Income (Loss)	$ (11,947)	$ (60,544)	$  79,044	$ (10,033)

Net Inc (Loss) per unit$   (2.34)  $  (11.84)   $  15.46    $   (1.96)

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
                                             6 Months   6 Months
                                              Ending     Ending
                                              6/30/99   6/30/98
Cash Flows From Operating Activities
	Net income (loss)	$ 79,044	$(10,033)
	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	8,228     (10,308)
		Depreciation	77,691	77,715
		Amortization	8,143	5,214
		(Increase) decrease in:
			Tenant receivables	(91,263)    ( 3,488)
			Other assets	9,180	4,332
		Increase (decrease) in:
			Accounts payable	60,799	618
			Accrued expenses	(39,115)	(67,358)
			Accrued interest payable	(29,213)	0
			Tenant deposits	     0	   587
	Net cash provided by (used in)
		operating activities	83,494	(2,721)


Cash Flows From Financing Activities
	Mortgage loan costs	(125,700)	0
	Receivable from joint	(15,000)	0
	Payments on mortgage note	(27,751)	 (29,424)
	Net cash provided by (used in)
		financing activities	(168,451)	 (29,424)

Net increase (decrease) in cash
	and cash equivalents	(84,957)    (32,145)

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

Cash & cash equivalents at end of period	$210,528	$444,990

Supplemental Disclosures
	Interest paid	$145,493	$177,133






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

Statements of Partnership Equity

Period from January 1, 1998 to June 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)	   75,092	   3,952	   79,044

Balance at June 30, 1999	$1,236,521	$(183,738)	$1,052,783









                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                              June 30, 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
	June 30, 1999


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 June 30,         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 June
30, 1999, the Partnership had $210,528 in cash and cash equivalents.
This represents 4.33% 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.


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
currently 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 will result in T. J. Maxx beginning monthly
rental payments in August 1999.

The lender required the Partnership to purchase insurance to cover any
pollution problems.  Efforts will be made to recover the premiums from
Ted's Cleaners.  Work will continue throughout the summer cleaning up
the site.


T. J. Maxx/Marshalls moved into the center in November 1998 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.  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.

	A nationally-known brokerage firm (Rockwood) has been retained
to market the office buildings.  Plans call for all offers to be
reviewed prior to September.  If accepted, some or all of the
properties would be sold before year end.  There is no assurance that
any offer will be acceptable.






                     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, 1999 are summarized
below.

                                 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 (loss)	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


		Operational results for the comparable six month period
ended June 30, 1998 were:

                                 Bellevue  Partnership     Total

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

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

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

Partnership share                  	66.67%	        100%

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

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









	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


July 24, 1999







?






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120
8

See Accountants' Compilation Report & Notes to Financial Statements.
16