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, 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 March 31, 1998 and December
           31, 1997                                                     	5

           Statements of Partnership Equity for the period
           January 1, 1997 through March 31,1998                   		6

           Statements of Operations for the three months
           ended March 31,1998 and 1997                     			7

           Statements of Cash Flows for the three months ended
           March 31, 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 - 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, 1998 (unaudited) and
statements of operations, partnership equity, and cash flows for the three
months ended March 31, 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 March 31, 1998 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, 1996, 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.

April 23, 1998



                                    Osborne & Co., P.C
						Certified Public Accountants





	U.S. REALTY INCOME PARTNERS L.P.

	(A LIMITED PARTNERSHIP)

	BALANCE SHEETS

                                          Unaudited            Audited
                                          March 31,          December 31,
                                             1997               1997
                  ASSETS

CASH                                      $  471,747        $  477,135

TENANT RECEIVABLES                             2,022             1,996

PREPAID ADMINISTRATIVE FEES

PROPERTY AND IMPROVEMENTS, net of
  accumulated depreciation of
  $1,463,533 and $1,424,675                3,846,394         3,885,251

INVESTMENT IN LIMITED PARTNERSHIP              1,000             1,000

OTHER ASSETS                                 251,306           256,080

     TOTAL ASSETS                         $4,572,469        $4,621,462


       LIABILITIES AND PARTNERSHIP EQUITY

ACCOUNTS PAYABLE                          $    1,290        $    1,187

ACCRUED EXPENSES                              34,904           120,548

NOTES PAYABLE                              3,540,497         3,557,105

     TOTAL LIABILITIES                     3,576,691         3,678,840

MINORITY PARTNER'S INTEREST IN JOINT
  VENTURE                                (   100,281)      (   102,925)

PARTNERSHIP EQUITY
  General Partners, no units authorized  (   181,574)      (   184,100)
  Limited Partners, 4,858 units
    authorized, issued, and outstanding    1,277,633         1,229,647

     TOTAL PARTNERSHIP EQUITY                995,778           942,622

  TOTAL LIABILITIES & PARTNERSHIP EQUITY  $4,572,469        $4,621,462

                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                    STATEMENTS OF PARTNERSHIP EQUITY

	Period from January 1, 1997 to March 31, 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 loss                         (     3,862)   (     203)  (     4,065)

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

Net income (loss)                     47,986        2,526        50,512

Balance at March 31, 1998         $1,277,633    ($181,574)   $1,096,059




	U.S. REALTY INCOME PARTNERS L.P.

	(A LIMITED PARTNERSHIP)
	STATEMENTS OF OPERATIONS

	For the Three Months Ended March 31, 1998 and 1997

                            Unaudited    Unaudited
                            3 Months     3 Months
                              1998         1997
      Revenues
  Rental income             $ 167,650    $ 192,194
  CAM reimbursements           16,516       27,223
  Miscellaneous                     0            0
  Interest income               4,426          840
                              188,592      220,257
Expenses
  Interest                     88,721       89,910
  Loan costs                        0        1,500
  Professional fees             1,942        3,026
  Depreciation                 38,854       38,845
  Amortization                  2,607        3,440
  Property taxes               18,872       17,012
  Leasing & admin.              8,917       14,150
  Management fees               7,339        8,341
  Repairs                       9,731       10,435
  Insurance                     5,793        5,023

                              182,780      191,682
Net Income Before
  Minority Partner's
    Share of Income             5,812       28,574

Minority Partner's
  Interest in
    Operating Profit       (    2,644)   (  14,277)

Income (Loss) from
  Operations                    3,168       14,297

Income from Investment
  in Joint Venture             47,344       30,709

Net Income (Loss)           $  50,512    $  45,006

Net Income (Loss) per
  Unit                      $    9.88    $    8.80
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, 1998    Sept. 30, 1997

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                            $ 50,512         $ 45,006
  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               2,644           14,277
      Depreciation                               38,858           28,845
      Amortization                                2,607            3,440
      (Increase) decrease in:
        Tenant receivables                    (      26)           3,601
	Prepaid administrative fees			     0        (   9,000)
        Other assets                              2,166            2,166
      Increase (decrease) in:
        Accounts payable                            103           31,424
        Accrued expenses                      (  86,231)       (  51,035)
        Tenant Deposits                             587                0
NET CASH PROVIDED (USED) BY OPERATING
    ACTIVITIES                                   11,220           87,724

CASH FLOWS FROM INVESTING ACTIVITIES:
  Distributions from Limited Partnership              -                -

NET CASH PROVIDED BY INVESTING ACTIVITIES             -                -

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on mortgage note                   (  16,608)       (  11,319)

  NET CASH USED IN FINANCING ACTIVITIES       (  16,608)       (  11,319)

NET INCREASE (decrease) IN CASH/EQUIVALTNES   (   5,388)          76,405

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

CASH & CASH EQUIVALENTS AT END OF PERIOD      $ 471,747        $ 368,234

SUPPLEMENTAL DISCLOSURES:

  INTEREST PAID                               $  88,721        $  89,910








                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
	March 31, 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
	March 31, 1998


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,
                                     1998                  1997

   Administrative expenses          $    -0-              $ 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, 1996, the partnership had $291,829 in cash and
cash equivalents.  This represents 6.01% of capital raised.  At September 30,
1997, the Partnership had $400,524 in cash and cash equivalents.  This
represents 8.24% 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 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.  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 by
year end.  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 any event, management anticipates no liability to the
partnership due to the existence of this fund since management believes the
current tenant is responsible for the cost of cleanup.

	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 was made for a replacement
tenant who could go into the center as early as November 1997.  Two tenants
have been secured to replace the Haverty lease.

	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 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.  Of course, they are still liable for the rent until
their lease termination.  Management has known about their planned move for
several months and all of the space has been re-leased.  The positive aspect of
this is the building will not have any loss of rental revenue.  However, their
is a cost of over $1,300,000 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 nine months ending September 30, 1997 are summarized below.

                          Bellevue         Partnership     Total

Revenues                  $585,069          $ 32,057      $617,126

Operating expenses         136,150            51,223       187,373
Interest                   268,860              -          268,860
Depreciation & amort.      116,536             8,655       125,191
                           521,546            59,878       581,424

Net income (loss)           63,523         (  27,821)       35,702

Partnership share           66 2/3%              100%

Partnership net income
  (loss)                  $ 42,349         ($ 27,821)     $ 14,528
Partnership Oper. cash
  flow                    $162,686         ($ 19,166)     $143,520

          Operational results for the comparable nine month period ended
September 30, 1996 were:
                          Bellevue         Partnership      Total

Revenues                  $569,639          $  1,334      $570,973

Operating expenses         126,319            87,590       213,909
Interest                   272,720              -          272,720
Depreciation & amort.      124,393             7,821       132,214
                           523,432            95,411       618,843

Net income (loss)           46,207         (  94,077)    (  47,870)

Partnership share           66 2/3%              100%

Partnership net income
  (loss)                  $ 30,805         ($ 94,077)    ($ 63,272)

Partnership Operating
  cash flow               $190,070         ($ 91,589)     $ 98,481

	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



November 12, 1997











	See Accountants' Compilation Report and Notes to Financial Statements.