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, 2001



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 March 31, 2001 and
           December 31, 2000							  5

           Statements of Operations for the three months
           ended March 31,2001 and 2000                             6

     	     Statements of Cash Flows for three months ended
     March 31, 2001 and 2000                                 7

     Statements of Partnership Equity for the period
           January 1, 2000 through March 31, 2001                  	 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 March 31, 2001 (unaudited) and
statements of operations, partnership equity, and cash flows for the
three  months ended March 31, 2001 (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 2000 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 March 31, 2001 and the
related statements of operations, partnership equity, and cash flows
for the three months and 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, 2000, were
audited by other accountants, and they expressed an unqualified opinion
on them in their report dated February 6, 2001, but they have not
performed any auditing procedures since that date.


May 10, 2001



				            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,
                                       2001            2000

             Assets

Cash				$  662,897	$  495,790

Escrow deposits	36,510	21,204

Tenant receivables     	578	422

Property & improvements, net of
	accumulated depreciation of
	$1,937,097 & $1,895,961	3,473,937	3,515,073

Investment in limited partnership	1,000	1,000

Other assets		   828,546	   852,018

	Total Assets	$ 5,003,468	$ 4,885,507

	Liabilities & Partnership Equity

Accounts payable	$       761	$       163

Accrued expenses	38,580	20,274

Notes payable 	    3,872,827	  3,915,764

	Total Liabilities	  3,912,168	  3,936,201

Minority partner's interest in JV	(59,912)	(89,447)

Partnership equity
	Gen. Partners, no units authorized	(158,816)	(164,439)
	Limited Partners, 4,858 units
		authorized, issued,
		and outstanding	  1,310,028	  1,203,192

	Total Partnership Equity	  1,151,212	  1,038,753

	Total Liabilities & Partnership
		Equity	$ 5,003,468	$ 4,885,507



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

Statements of Operations

For the Three Months Ended
March 31, 2001 and 2000

	                 Unaudited              Unaudited
	                 3 Months	               3 Months
	                   2001                   2000
Revenues
	Rental income	$ 255,019		$ 243,625
	CAM reimbursements	23,083		14,758
	Interest income	  6,213		  4,513

			284,315		262,896

Expenses
	Interest	70,714		74,448
	Professional fees	600		2,850
	Depreciation	41,136		38,887
	Amortization	18,049		18,049
	Property taxes	18,306		21,110
	Leasing & admin.	35,742		40,728
	Management fees	11,025		10,502
	Repairs	9,679		11,434
	Utilities	2,819		2,357
	Insurance	   1,134		    735

			209,204		221,100

Net income before minority partner's
	share of income	75,111		41,796

Minority partner's interest
	in operating profit	(29,535)		(21,373)

Income (Loss) from
	operation	45,576		20,423

Income from investment
	in Joint Venture	 66,883		          0

Net Income (Loss)	$112,459		$ 20,423

Net Income (Loss)
	per Unit           $  21.99    	           $   3.99

Weighted Avg. No.
	of Units	   4,858		   4,858



U.S. Realty Income Partners L.P.
(A Limited Partnership)
Statements of Cash Flows

                                            Unaudited  Unaudited
                                             3 Months   3 Months
                                              Ending     Ending
                                              3/31/01   3/31/00
Cash Flows From Operating Activities
	Net income (loss) from operations	$  45,576	$   20,423
	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	29,535	21,373
		Depreciation	41,136	38,887
		Amortization	18,049	18,049
		(Increase) decrease in:
			Escrow deposits	(15,306)	(33,971)
			Tenant receivables	(156)	21,000
			Other assets	5,423	5,138
		Increase (decrease) in:
			Accounts payable	598	3,881
			Accrued expenses	18,306	18,306
			Tenant deposits	      0	    2,041
	Net cash provided by (used in)
		operating activities	143,161	115,127

Cash Flows From Investing Activities
	Distribution from joint venture	 66,883	        0
	Net cash provided by (used in)
		investing activities	 66,883	        0

Cash Flows From Financing Activities
	Payments on mortgage note	(42,937)	  (39,204)
	Net cash provided by (used in)
		financing activities	(42,937)	    (39,204)

Net increase (decrease) in cash
	and cash equivalents	167,107	75,923

Cash & cash equivalents at beginning
	of period	 495,790	 393,227

Cash & cash equivalents at end of period	$662,897	$469,150
Supplemental Disclosures
	Interest paid	$ 70,714	$ 74,448






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

Statements of Partnership Equity

Period from January 1, 2000 to March 31, 2001



                                   Limited     General
                                  Partners     Partner     Total


Distributive share of net earnings	95%	5%	100%

Balance at January 1, 2000	$1,180,971	$(186,661)	$  994,310

Cash distributions	(400,000)		(400,000)

Net earnings of 2000	  422,221	  22,222	  444,443

Balance at December 31, 2000	1,203,192	(164,439)	1,038,753

Net earnings of 2001	  106,836	   5,623	  112,459

Balance at March 31, 2001	$1,310,028	$(158,816)	$1,151,212









                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                              March 31, 2001

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 2000 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, 2001.

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
	March 31, 2001


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,
                                     2001                     2000

   Administrative expenses          $ 18,000               $ 66,000


	Guarantee fees, which are related to the note payable, were paid
to affiliates in the amount of $40,000 in 2000.

      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, 2000, the partnership had $495,792 in cash and
cash equivalents.  This represents 10.2% of capital raised.  At March
31, 2001, the Partnership had $662,897 in cash and cash equivalents.
This represents 13.6% 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 2001.

          The General Partner anticipates that cash distributions will
be made in 2001.  The amount of the distributions has not been
determined.


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.


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.

	In addition, there was a hold back of $69,000 for future
contingencies.  This amount was released and was received by the
partnership the first quarter.

	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 three months ending March 31, 2001 are summarized
below.

                                 Bellevue  Partnership    Total

Revenues	$276,856	$ 74,342	$ 351,198

Operating expenses	61,261	18,345	 79,606
Interest	70,414	-	 70,414
Depreciation & amortization	 56,577	  2,607	 59,184
		188,252	 20,952	209,204

Net income (loss)	88,604	53,390	141,994

Partnership share	                 66 2/3%	        100%

Partnership net income	$ 59,069 	$ 53,390	$112,459

Partnership operating
	cash flow	$ 87,997	$ 55,997	$143,994


		Operational results for the comparable three month period
ended March 31, 2000 were:


                                 Bellevue  Partnership     Total

Revenues	$261,704	$  1,192	$262,896

Operating expenses	68,808	20,908	 89,716
Interest	74,448	-	74,448
Depreciation & amortization	 54,329	  2,607	 56,936
		197,585	 23,515	221,100

Net income (loss) 	64,119	(22,323)	41,796

Partnership share                  	66.67%	        100%

Partnership net income	$ 42,746	$(22,323)	$ 20,423

Partnership operating
	cash flow	$134,843	$(19,716)	$115,127









	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


May 10, 2001










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See Accountants' Compilation Report & Notes to Financial Statements.
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