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, 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 September 30, 1999 and December
           31, 1998                                                	      5

           Statements of Operations for the three months
           and nine months ended September 30, 1999 and 1998             6

	     Statements of Cash Flows for the nine months ended
           September 30, 1999 and 1998                                    7

     Statements of Partnership Equity for the period
           January 1, 1998 through September 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 September 30, 1999 (unaudited) and
statements of operations, partnership equity, and cash flows for the three
months  and nine months ended September 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 September 30, 1999 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, 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.


October 28, 1999



				            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,
                                        1999          1998

             Assets

Cash				$  355,299	$  295,485

Escrow deposits	402,144	0

Tenant receivables	146,749	32,901

Property & improvements, net of
	accumulated depreciation of
	$1,696,643 and $1,580,106	3,613,284	3,729,821

Investment in limited partnership	1,000	1,000

Other assets		   527,198	   413,928

	Total Assets	$ 5,045,674	$ 4,473,135

	Liabilities & Partnership Equity

Accounts payable	$    2,618	$       874

Accrued expenses	70,949	123,474

Notes payable 	    4,113,019	  3,505,577

	Total Liabilities	  4,186,586	  3,629,925

Minority partner's interest in JV	(136,932)	(130,529)

Partnership equity
	Gen. Partners, no units authorized	(183,576)	(187,690)
	Limited Partners, 4,858 units
		authorized, issued,
		and outstanding	  1,182,596	  1,161,429

	Total Partnership Equity	    859,088	    843,210

	Total Liabilities & Partnership
		Equity	$ 5,045,674	$ 4,473,135





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

Statements of Operations

For the Three Months and Nine Months Ended
September 30, 1999 and 1998

                        Unaudited   Unaudited   Unaudited   Unaudited
                        3 Months    3 Months    9 Months    9 Months
                          1999         1998        1999        1998

Revenues
	Rental income	$ 166,684	$ 111,288	$ 529,683	$ 394,508
	CAM reimbursements	14,603	13,578	43,378	45,974
	Miscellaneous	(59)	349	0	527
	Interest income	  1,247	   4,514	   5,523	   14,214

		182,475	129,729	578,584	455,223

Expenses
	Interest	107,584	88,300	253,078	265,433
	Loan costs	40,000	0	40,000	0
	Professional fees	8,090	3,554	22,266	17,792
	Depreciation	38,846	38,858	116,537	116,573
	Amortization	4,072	2,607	12,215	7,821
	Property taxes	5,352	18,872	44,466	56,617
	Leasing & admin.	30,793	21,871	77,750	63,486
	Management fees	6,889	4,797	23,557	16,917
	Repairs	12,113	11,239	61,819	29,904
	Insurance	    127	    (19)	   6,554	   8,715

		 253,866	 190,079	 658,242	 583,258

Net income before minority partner's
	share of income	(71,391)	(60,350)	(79,658)	(128,035)

Minority partner's interest in
	operating profit	  14,630	  12,340	  5,905	  22,648

Inc (Loss) from operation	(56,761)	(48,010)	(73,753)	(105,387)

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

Net Income (Loss)	$ (56,761)	$ (48,010)	$  22,281	$ (58,043)

Net Inc (Loss) per unit$  (11.10)  $   (9.39)   $   4.36    $  (11.35)

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 Partnership Equity

Period from January 1, 1998 to September 30,1999



                                   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)	   21,167	   1,114	   22,281

Balance at September 30, 1999	$1,182,596	$(186,576)	$  996,020








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

Statements of Cash Flows

                                            Unaudited  Unaudited
                                             9 Months   9 Months
                                              Ending     Ending
                                              9/30/99   9/30/98
Cash Flows From Operating Activities
	Net income (loss)	$ 22,281	$(58,043)
	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	(6,403)	(22,648)
		Depreciation	116,537	116,573
		Amortization	12,215	7,821
		(Increase) decrease in:
			Escrow deposits	(2,144)	0
			Tenant receivables	(113,848)    ( 3,427)
			Other assets	13,770	(48,703)
		Increase (decrease) in:
			Accounts payable	1,744	32,673
			Accrued expenses	(23,311)	(48,486)
			Accrued interest payable	(29,213)	0
			Tenant deposits	     0	   587
	Net cash provided by (used in)
		operating activities	(8,372)	(24,053)

Cash Flows From Investing Activities
	Purchase of property and improvements	      0	 (57,304)
	Net cash provided by (used in)
		investing activities	      0	 (57,304)

Cash Flows From Financing Activities
	Proceeds from refinancing	4,150,000	0
	Escrow deposits	(400,000)	0
	Mortgage loan costs	(126,880)	0
	Receivable from joint venture	(12,377)	0
	Payments on mortgage note	(3,542,558)	  (42,353)
	Net cash provided by (used in)
		financing activities	    68,185	  (42,353)

Net increase (decrease) in cash
	and cash equivalents	59,813    (123,710)

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

Cash & cash equivalents at end of period	$355,298	$353,425
Supplemental Disclosures
	Interest paid				 $253,078	 $265,433
                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                             September 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
	September 30, 1999


C.  TRANSACTIONS WITH AFFILIATES

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

                                 Nine Months          Year Ended
                               Ended June 30,         December 31,
                                     1999                  1998

   Administrative expenses          $ 36,000             $ 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
September 30, 1999, the Partnership had $355,299 in cash and cash
equivalents.  This represents 7.31% 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 fall 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,
1997 and 1998.

	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
according 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.  At this time negotiations are under way with
several buyers.  At this time it is not possible to know the final
results.




                     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, 1999 are summarized
below.

                                 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)


		Operational results for the comparable nine month period
ended September 30, 1998 were:

                                 Bellevue  Partnership     Total

Revenues	$453,218	$ 49,349	$502,567

Operating expenses	138,976	54,455     193,431
Interest	265,433	-	265,433
Depreciation & amortization	116,573	  7,821	124,394
		520,982	 62,276	583,258

Net income (loss)	(67,764)	(12,927)	(80,691)

Partnership share                  	66.67%	        100%

Partnership net income 	$(45,116)	$(12,927)	$(58,043)

Partnership operating
	cash flow	$(18,947)	$ (5,106)	$(24,053)








	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, 1999








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