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, 1997                   

                                   OR

[ ]            TRANSITION REPORT PURSUANT TO SECTION 13 OR
              15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                   to                      


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 March 31, 1997 and December                
           31, 1996                                                     5
                
           Statements of Partnership Equity for the period 
           January 1, 1996 through March 31, 1997                       6

           Statements of Operations for the three months         
           ended March 31, 1997 and 1996                                7
                                                                       
           Statements of Cash Flows for the three months ended     
           March 31, 1997 and 1996                                      8    
   
           Notes to Financial Statements                           9 - 10
               

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                    11 - 13

PART II    Other Information

Item 1.    Legal Proceedings                                           14

Item 2.    Changes in Securities                                       14

Item 3.    Default Upon Senior Securities                              14
                      
Item 4.    Submissions of Matters to a Vote of Security Holders        14

Item 5.    Other Information                                           14 
   
Item 6.    Exhibits and Reports on Form 8-K                            14

SIGNATURES                                                             15







                     PART I - FINANCIAL INFORMATION


ITEM 1.  Financial Statements

          The following balance sheet at March 31, 1997 (unaudited) and 
statements of operations, partnership equity, and cash flows for the three
months ended March 31, 1997 (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 1996
Annual Report, as reported on Form 10-K.




























<PAGE>



                           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 March 31, 1997, 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, 1996, were audited by
other accountants, and they expressed an unqualified opinion on them in their
report dated January 21, 1997, but they have not performed any auditing
procedures since that date.

May 9, 1997


                              
                                    Osborne & Co., P.C 
                                    Certified Public Accountants




<PAGE>
                       U.S. REALTY INCOME PARTNERS L.P.

                            (A LIMITED PARTNERSHIP)

                                BALANCE SHEETS

                                          Unaudited            Audited
                                           March 31,         December 31, 
                                             1997               1996    

                  ASSETS

CASH                                      $  359,234        $  291,829

TENANT RECEIVABLES                             2,434             6,035

PREPAID ADMINISTRATIVE FEES                    9,000                 0

PROPERTY AND IMPROVEMENTS, net of
  accumulated depreciation of         
  $1,308,139 and $1,269,294                4,001,788         4,040,633

INVESTMENT IN LIMITED PARTNERSHIP              1,000             1,000

OTHER ASSETS                                 261,378           266,984

     TOTAL ASSETS                         $4,634,834        $4,606,481


       LIABILITIES AND PARTNERSHIP EQUITY

ACCOUNTS PAYABLE                          $   33,972        $    2,548

ACCRUED EXPENSES                              32,457            83,492

NOTES PAYABLE                              3,588,713         3,600,032

     TOTAL LIABILITIES                     3,655,142         3,686,072


MINORITY PARTNER'S INTEREST IN JOINT
  VENTURE                                (   106,796)      (   121,073)

PARTNERSHIP EQUITY                         1,086,488         1,041,482

     TOTAL PARTNERSHIP EQUITY                979,692           920,409

  TOTAL LIABILITIES & PARTNERSHIP EQUITY  $4,634,834        $4,606,481<PAGE>
        
            U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                    STATEMENTS OF PARTNERSHIP EQUITY

                Period from January 1, 1996 to March 31, 1997                 


                                      Limited     General
                                     Partners     Partner       Total

Distributive share of 
  net earnings                         95%           5%          100%    

Balance at January 1, 1996        $1,275,793    ($181,671)   $1,094,122

Net loss                         (    50,008)   (   2,632)  (    52,640)

Balance at December 31, 1996       1,225,785    ( 184,303)    1,041,482

Net income                            42,756        2,250        45,006 

Balance at March 31, 1997         $1,268,541    ($182,053)   $1,086,488 



<PAGE>
                       U.S. REALTY INCOME PARTNERS L.P.

                            (A LIMITED PARTNERSHIP)

                           STATEMENTS OF OPERATIONS

              For the Three Months Ended March 31, 1997 and 1996 

                            Unaudited    Unaudited 
                            3 Months     3 Months  
                              1997         1996                            
Revenues
  Rental income             $ 192,194    $ 182,177   
  CAM reimbursements           27,223       42,234   
  Interest income                 840        1,416   
 
                              220,257      225,827   
Expenses
  Interest                     89,910       90,980   
  Loan costs                    1,500            0   
  Professional fees             3,026            0
  Depreciation                 38,845       38,857   
  Amortization                  3,440        5,214   
  Property taxes               17,012       17,012       
  Leasing & admin.             14,150       46,079       
  Management fees               8,341        7,882       
  Repairs                      10,435        8,522       
  Insurance                     5,023        3,183   

                              191,682      217,729   
Net Income Before
  Minority Partner's 
    Share of Income            28,574        8,098   

Minority Partner's 
  Interest in  
    Operating Profit       (   14,277)  (   16,026)  

Income (Loss) from 
  Operations                   14,297   (    7,928)  

Income from Investment
  in Joint Venture             30,709            0   

Net Income (Loss)           $  45,006   ($   7,928)  

Net Income (Loss) per
  Unit                      $    8.80   ($    1.55)  

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
                                             Three Months     Three Months 
                                                Ending           Ending
                                            March 31, 1997   March 31, 1996

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                            $ 45,006      ($  7,928)
  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              14,277         16,026
      Depreciation                               38,845         38,857
      Amortization                                3,440          5,214
      (Increase) decrease in:
        Tenant receivables                        3,601      (   9,167)
        Prepaid administrative fees           (   9,000)             0
        Other assets                              2,166         32,445 
      Increase (decrease) in:
        Accounts payable                         31,424            329 
        Accrued expenses                      (  51,035)     (  51,035)
        Tenant Deposits                       (       0)     (     300)
NET CASH PROVIDED (USED) BY OPERATING
    ACTIVITIES                                   87,724         24,441 

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on mortgage note                   (  11,319)     (  10,249)

  NET CASH USED IN FINANCING ACTIVITIES       (  11,319)     (  10,249)
                                    
NET INCREASE IN CASH/EQUIVALTNES                 76,405         14,192 
  
CASH & CASH EQUIVALENTS AT BEGINNING PERIOD     291,829        155,183

CASH & CASH EQUIVALENTS AT END OF PERIOD      $ 368,234      $ 169,375
 
SUPPLEMENTAL DISCLOSURES:

  INTEREST PAID                               $  89,910      $  90,980







                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                               March 31, 1997  

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1996 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, 1997.

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 valueofthe
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, 1997 




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,
                                     1997                  1996    
   
   Administrative expenses          $ 18,000            $ 65,000


      In 1996, the Partnership paid $29,000, in deferred payments in addition to
normal recurring charges.

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



<PAGE>
                     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, 1996, the partnership had $291,829 in cash and
cash equivalents.  This represents 6.01% of capital raised.  At March 31, 1997,
the Partnership had $359,231 in cash and cash equivalents.  This
represents 7.39% 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 1997.

          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 firstmortgage
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 of August 1997.  The Partnership is currently negotiating
refinancing this loan.The Partnership has paid debt service on a current basis.

      The pollution problem is moving slowly.  The State of Tennessee plans to
promulgate rules and regulations pertaining to state-wide pollution problems in
the next three months.  Hopefully, we would then know what it takes to resolve
the problem.  As part of the overall solution, a "super fund" of money would be
made available for participants such as Ted's Cleaners to pay for the cleanup of
the pollutants.  In the meantime, Ted's has accepted responsibility and has
funded various expenses.

      In January, Haverty's did not extend their lease by exercising their
option.  This means their lease terminates at the end of October 1997.They have
requested to remain in the center for an additional year from October 1996 at a
slightly higher rental rate but with a thirty-day termination rate.  Their lease
would essentially be a month to month lease.  At this time, we do not feel that
we need to commit to this.  A search has started for a replacement tenant who
could go into the center as early as November 1997.  If a tenant is not forth
coming, we would then grant Haverty's request.

      In the meantime, Mass Mutual as part of their mortgage extension, is
requiring that all cash-flow be placed in escrow in case the partnership has any
expense for Ted's Cleaners and for tenant improvements and commissions for re-
leasing the Haverty's space.  Unfortunately, this provision prevents the
partnership from paying any distributions from Bellevue Plaza.


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 isDaniel West End Limited Partnership,the generalpartner
of which is the Daniel Corporation (Daniel").  The property was 95% occupied at
December 31, 1994, 1995 and 1996.  There are no tenant leases currently under
negotiation.  One tenant occupied 45.9% of the space with payments providing
annual lease income of $932,000.

      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.  Of course, they are still liable for the rent until their lease
termination.  Management has known about their planned move for several months
and most of the space should be re-leased within six months with a number of
tenants which have equal or better credit.  The positive aspect of this is the
building will not have any loss of rental revenue.  However, their is a cost of
over $1,100,000 that must be paid for tenant improvements and commissions.  This
expense will be paid for from rental cash flow.

      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.

                     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 theee months ending March 31, 1997 are summarized below.

                          Bellevue         Partnership     Total 

Revenues                  $219,900          $ 31,066      $250,966

Operating expenses          47,481            12,007        59,488
Interest                    89,910              -           89,910
Depreciation & amort.       39,679             2,606        42,285
                           177,070            14,613       191,683

Net income (loss)           42,830            16,453        59,283 

Partnership share           66 2/3%              100%

Partnership net income
  (loss)                  $ 28,553          $ 16,453      $ 45,006  
Partnership Oper. cash        
  flow                    $ 68,665          $ 19,059      $ 87,724

          Operational results for the comparable three month period ended
March 31, 1996 were:
                          Bellevue         Partnership      Total    

Revenues                  $225,093          $    734      $225,827

Operating expenses          44,573            38,105        82,678
Interest                    90,980              -           90,980
Depreciation & amort.       41,464             2,607        40,071
                           177,017            40,712       217,729

Net income (loss)           48,076         (  39,978)    (   8,098)

Partnership share           66 2/3%              100%            %

Partnership net income
  (loss)                  $ 32,050         ($ 39,978)    ($  7,928)

Partnership Operating
  cash flow               $ 61,812         ($ 37,371)     $ 24,441         

      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:      Robert Bond Miller             
                                      Robert Bond Miller
                                      President, Director, Chief Executive 
                                      Officer, Chief Financial Officer and
                                      Chief Accounting Officer



May 12, 1997