UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C.  20549
                          Form 10-K/A
                         Amendment No. 2

(Mark One)
(X)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
     THE SECURITIES EXCHANGE ACT OF 1934  (NO FEE REQUIRED)

For the fiscal year ended     December 31, 1996
                             or
( )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934     (NO FEE REQUIRED)
For the transition period from                to

Commission file number             0-16171

USAA Income Properties IV Limited Partnership
(Exact name of registrant as specified in its charter)

     Delaware                            74-2449334
(State of Organization)        (I.R.S. Employer Identification No.)

8000 Robert F. McDermott Fwy., IH 10 West,  Suite  600,
             San Antonio, Texas  78230-3884 
       (Address of principal executive offices)      (Zip Code)

Registrant's telephone number, including area code:(210)498-7391

Securities registered pursuant to Section 12(b) of the Act:

                                     Name of each exchange on
Title of each class                    which registered  
   None                                     None

Securities registered pursuant to section 12(g) of the Act:

             UNITS OF LIMITED PARTNERSHIP INTERESTS
                        (Title of class)

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

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.                                                  [ X ]

<PAGE>
State the aggregate market value of the voting stock held by non-
affiliates of the registrant:  Not Applicable

DOCUMENTS INCORPORATED BY REFERENCE:

Certain  portions of the prospectus of the registrant dated  June
8,  1987, as supplemented, filed pursuant to Rule 424(b)  or  (c)
under the Securities Act of 1933 are incorporated by reference in
Parts I and III.

<PAGE>
                       INTRODUCTORY NOTE

This Amendment No. 2 to the Annual Report on Form 10-K of USAA
Income Properties IV Limited Partnership is being filed for the
purpose of changing the method for accounting for the Partnership's
55.84% interest in USAA Chelmsford Associates Joint Venture.  Prior
financial statements of the Partnership were prepared on a consolidated
basis with USAA Chelmsford Associates Joint Venture.  For all periods
presented in the accompanying financial statements, the Partnership's
55.84% interest in USAA Chelmsford Associates Joint Venture is accounted
for using the equity method.  Only those sections affected by the change
are being filed in this amendment.

<PAGE>
                    TABLE OF CONTENTS


PART I

Item 1.  Business

Item 2.  Properties

Item 3.  Legal Proceedings

Item 4.  Submission of Matters to a Vote of Security
         Holders

PART II

Item 5.  Market for the Registrant's Limited Partnership
         Interests and Related Security Holder Matters

Item 6.  Selected Financial Data

Item 7.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations

Item 8.  Financial Statements and Supplementary Data

Item 9.  Changes in and Disagreements with Accountants on
         Accounting and Financial Disclosure

PART III

Item 10. Directors and Executive Officers of the General Partner

Item 11. Executive Compensation

Item 12. Security  Ownership of Certain Beneficial  Owners  and
         Management

Item 13. Certain Relationships and Related Transactions

PART IV

Item 14. Exhibits, Financial Statement Schedule and Reports  on
         Form 8-K

Signatures

Index to Exhibits

<PAGE>

                               PART I

Item 2. Properties

       The  Partnership owns, either directly or through a  joint
venture, the properties described below as of December 31, 1996:

       Location                   Description of Property

Milpitas, California        Linear      Technology      Corporate
                            Headquarters:   An  office   building
                            containing  approximately 42,130  net
                            leasable  square  feet  situated   on
                            2.66  acres.  At December  31,  1996,
                            the  property  was 100% occupied  and
                            average   monthly  cash  rental   was
                            approximately $32,000.  There  is  no
                            debt    on   this   property.     The
                            Partnership   has   100%   fee-simple
                            ownership.

San Diego, California       Eastman  Kodak Building:   An  office
                            building   containing   approximately
                            57,747   net  leasable  square   feet
                            situated  on 4.64 acres.  At December
                            31,   1996,  the  property  was  100%
                            occupied  and  average  monthly  cash
                            rental  was  $49,000.   The  mortgage
                            payable    on   this   property    is
                            $1,131,500.    The  Partnership   has
                            100% fee-simple ownership.

St. Louis, Missouri         1881    Pine   Street:    An   office
                            building   containing   approximately
                            106,340  net  leasable  square   feet
                            situated  on  approximately  1  acre.
                            At  December  31, 1996, the  property
                            was  82%  leased and average  monthly
                            cash  rental was $24,000.   There  is
                            no   debt  on  this  property.    The
                            Partnership   has   100%   fee-simple
                            ownership.

Chelmsford, Massachusetts   Apollo  Computer  Research   and
                            Development         Headquarters
                            Building:    An  office/research
                            and     development     facility
                            containing         approximately
                            291,424   net  leasable   square
                            feet  situated on 26.651  acres.
                            At   December  31,   1996,   the
                            property  was  100%  leased  and
                            average monthly cash rental  was
                            $235,000.  The mortgage  payable
                            on      this     property     is
                            $15,287,583.  This  building  is

<PAGE>

                            100%  owned  in  fee-simple   by
                            USAA    Chelmsford    Associates
                            Joint  Venture.  The Partnership
                            holds  a 55.8% interest in  this
                            joint venture.

See  notes  3,  4,  5,  6, 7 and 10 of  Notes  to  Financial
Statements in Item 8, for further discussion relating to the
properties and encumbrances thereon.
                              
<PAGE>                              
                           PART II
<TABLE>
Item 6.  Selected Financial Data
<CAPTION>
                 USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP

                             SELECTED FINANCIAL DATA
           Years Ended December 31, 1996, 1995, 1994, 1993 and 1992

                                     1996             1995             1994             1993             1992
<S>                               <C>               <C>              <C>              <C>              <C>      
Rental Income                     $ 1,227,447        1,687,107        2,522,901        2,498,802        2,616,995
Equity in earnings of
  Joint Venture                       234,212          215,804          228,842          220,713          212,566
Interest Income                        75,275          121,801           50,775           13,815           18,279
Net Income(Loss)                     (887,393)        (267,510)         557,195          622,013          731,669
Net Income(Loss) per Limited
  Partnership Interest (1)             (14.52)           (4.38)            9.12            10.18            11.97
Taxable Income(Loss)                 (497,321)         122,089        1,053,107          920,808          979,092
Taxable Income(Loss) per
  Limited Partnerhip
  Interest (1)                          (8.14)            2.00            17.23            15.07            16.02
Cash Distributions                    595,784          916,591          916,592        1,191,567        1,649,864
Cash Distributions per
  Limited Partnership
  Interest (2)                           9.75            15.00            15.00            19.50            27.00
Total Assets at Period End         27,353,443       28,782,408       30,020,710       30,533,629       31,158,659
Total Mortgages and Note
  Payable at Period End             7,131,500        7,192,098        7,247,175        7,297,216        7,342,683



     (1)  Based on limited partnership interests issued at period end and net
          income(loss)/taxable income(loss) allocated to Limited Partners.

     (2)  Based on limited partnership interests issued at each quarter end and
          cash distributions allocated to Limited Partners.

     The above selected financial data should be read in conjunction with the 
     financial statements and related notes appearing elsewhere in this report.
</TABLE>
<PAGE>
Item  7.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL
           CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

At  December  31, 1996, the Partnership had cash of  $33,233  and
temporary  investments of $753,756.  Included  in  these  amounts
were  the  working capital reserve and funds held for payment  of
current  obligations  of  the Partnership.   Accounts  receivable
consisted  of  amounts  due from tenants.  Deferred  charges  and
other assets consisted primarily of deferred rent resulting  from
recognition   of   income  as  required  by  generally   accepted
accounting  principles  and lease commissions.  Accounts  payable
consisted  of amounts due to affiliates for management  fees  and
reimbursable  expenses  and amounts  due  to  third  parties  for
expenses  incurred  for operations. Accrued  expenses  and  other
liabilities consisted of security deposits and prepaid rent.

During  the  third quarter of 1996, a five-year lease was  signed
with  Sherwood Medical Company at 1881 Pine Street in St.  Louis,
Missouri.  Sherwood occupied the building on August 24, 1996  and
the  lease  will expire August 2001.  The lease provides  for  an
annual  rental  rate of $12.75 per square foot for 22,376  square
feet of space and annual parking revenue of $21,600.  In addition
to  rent,  Sherwood  will pay their pro rata share  of  operating
expenses in excess of their base year of 1996.  An allowance  for
tenant  improvements in the approximate amount  of  $259,600  was
provided which was paid out of the working capital reserve of the
Partnership.   In addition, Sherwood paid a security  deposit  of
$23,774.

During  the fourth quarter of 1996, a five-year lease was  signed
with  Busch Creative Services Corporation for 64,805 square  feet
at  1881 Pine Street.  This lease commenced February 1, 1997  and
will  expire  on  January 31, 2002.  The lease  provides  for  an
annual  rental rate of approximately $12.25 per square  foot  and
annual parking revenue of $71,400.  In addition, this tenant will
pay their pro rata share of operating expenses in excess of their
base  year  of  1997.   An allowance for tenant  improvements  of
$1,036,880  was  provided to be paid out of the  working  capital
reserve of the Partnership.  These two leases at 1881 Pine Street
have  resulted in 87,181 square feet of the 106,340  square  feet
leased at December 31, 1996.

During  1995, the lease with Hewlett-Packard Company, the  single
tenant  at  the Apollo Building in Chelmsford, Massachusetts  was
renewed for an additional 41 months.  The new monthly rental rate
of approximately $.57 per square foot for the 291,424 square foot
building began in January 1997.  This rate is lower than the rate
paid  in  1996 of approximately $.76 per square foot and reflects
the  market conditions in the area surrounding the property.   An
allowance  for  tenant improvements was provided at  a  total  of
$565,000 to be paid from the joint venture working capital. During
1996,   Hewlett-Packard  used  approximately  $260,000   of   the
allowance for tenant improvements.  Approximately $197,000 of the
tenant improvement allowance remains as of December 31, 1996.

<PAGE>             
The  Kodak  Building was 100% occupied at December 31, 1996  with
Eastman   Kodak  occupying  34,600  square  feet  and  Invitrogen
Corporation  occupying  the remaining 23,147  square  feet.   The
lease  with  Invitrogen was scheduled to expire  in  April  1996;
however,   the   lease  was  extended  through   December   1996.
Invitrogen paid an extension fee of $20,000.  Invitrogen remained
in the building until February 1997 paying holdover rent (200% of
December  1996  rent)  for January and  February  1997.   Eastman
Kodak's  lease is scheduled to expire February 1998.  Discussions
have  commenced  with Eastman Kodak regarding the possibility  of
renewing early and leasing the entire building.

During  the year ended December 31, 1996, quarterly distributions
totaling  $589,826  and $5,958 were distributed  to  the  Limited
Partners  and  General  Partner,  respectively  for  a  total  of
$595,784 in cash distributions.  Cash distributions were  reduced
to  $2.00 per unit for the quarter ended March 31, 1996 in  order
to  build  working capital reserves to meet the cash requirements
needed for tenant improvements and lease commissions at 1881 Pine
Street   as   new   leases  are  signed.   In  addition,   tenant
improvements and lease commissions will be required at Kodak  due
to   Invitrogen  vacating  the  premises.   Management  evaluates
reserves  and  the  availability of  funds  for  distribution  to
Partners  on  a  continuing basis based  on  anticipated  leasing
activity   and   cash  flows  available  from   the   Partnership
investments. Due to the significant amount of the working capital
reserve that was used and will be needed for leasing costs at all
Partnership properties, the Partnership borrowed $1,200,000  from
USAA  Real  Estate Company, an affiliate of the General  Partner,
subsequent  to  year-end to fund working capital needs  in  1997.
The  $6,000,000 note payable was thereby increased to  $7,200,000
with a decrease in the interest rate from 10% to 9%. The maturity
date  of  the note was extended from September 1997 to  March  1,
1999.

Future  liquidity is expected to result from cash generated  from
the   operations  of  the  properties,  interest   on   temporary
investments and ultimately through the sale of the properties.


Results of Operations

For the three-years ended December 31, 1996, income was generated
from   rental  income  from  the  income-producing  real   estate
properties,  interest  income earned on the  funds  in  temporary
investments and earnings from the joint venture interest.

Expenses  incurred during the same periods were  associated  with
the operation of the Partnership's properties,  interest  on  the
mortgage and note payable and various other costs required  for
administration of the Partnership.

<PAGE>
During  1996, 1995 and 1994, one of the Partnership's  properties
was  a  single-tenant property with an absolute triple net lease.
Under  an  absolute triple net lease, the lessee is  required  to
make  all payments for expenses related to the use and occupation
of   the  leased  premises,  including  real  estate  taxes   and
assessments,  property  and  liability  insurance,  repairs   and
maintenance, utilities and other operating costs associated  with
the property. Accordingly, the Partnership received rental income
and the lessee absorbed all such expenses on this property.

Rental  properties decreased as of December 31, 1996 as  compared
to  December  31,  1995  due to depreciation,  offset  by  tenant
improvements  at  1881  Pine Street.  Cash and  cash  equivalents
decreased  as  of December 31, 1996 as compared to  December  31,
1995  due  to payment for tenant improvements.  Deferred  charges
and  other assets increased as of December 31, 1996 due to  lease
commissions at 1881 Pine Street.  Other liabilities increased  as
of December 31, 1996 due to prepaid rent at 1881 Pine Street.

Rental  income decreased for the year ended 1996 as  compared  to
the  year  ended 1995 primarily due to the vacancy at  1881  Pine
Street.  The  rental  rate decrease at Linear  due  to  the  1995
renewal  added to the variance for 1996.  Rental income decreased
for  1995 as compared to 1994 primarily due to the single  tenant
at  1881  Pine  Street vacating the property  in  May  1995  upon
expiration   of   the   lease.   The   single   tenant   provided
approximately  $1.3 million of rental income during  1994.   Also
contributing  to the decrease in rental income in  1995  was  the
rent  reduction  at Linear.  The tenant at Linear  renewed  at  a
monthly  rate of $.75 per square foot for the 42,130 square  foot
building, which is lower than the previous monthly rate of  $1.15
per square foot and reflects the current market conditions in the
area surrounding the property.

Equity  in  joint venture earnings increased for the  year  ended
1996  as  compared  to the year ended 1995  as  a  result  of  an
increase  in  net  income of the joint venture  property  due  to
decreases in parking lot repairs and interest expense.  Equity in
joint venture earnings decreased for 1995 as compared to 1994 due
to  a  decrease in net income of the joint venture property as  a
result  of parking lot repairs, offset somewhat by a decrease  in
interest expense.

Lower  cash  reserves caused the decrease in interest income  for
the  year ended 1996 as compared to the year ended 1995.   Higher
interest rates and an increase in cash reserves accounted for the
increase in interest income for 1995 as compared to 1994.

Depreciation  increased  for 1995 as  compared  to  1994  due  to
improvements  at  1881  Pine  Street  and  Kodak.   Other  direct
expenses  were  higher  for  1996 as  compared  to  1995  due  to
operating  expenses  at  1881  Pine  Street.   1881  Pine  Street
incurred legal fees for new leases,  expenses  for  utilities,
heating and  air  conditioning repairs and other building service
expenses previously  paid  by the single tenant.  Other direct

<PAGE>
expenses were higher for 1995 as compared  to  1994 as a result of
sidewalk repairs, property  tax payments and demolition costs at
the 1881 Pine Street property to enhance the appearance of the
property for showing to prospective tenants.

General and administrative expenses increased for the year  ended
1996  as  compared to the year ended 1995 primarily due to  lease
commission  expense.  Lease commissions were paid for the  Linear
Technology lease renewal and the Invitrogen lease renewal at  the
Kodak  Building.   General and administrative expenses  decreased
for  1995  as compared to 1994 due to a reduction in charges  for
preparation  of federal and state tax returns, a reduction  in  a
partnership  earnings tax paid to the City of  St.  Louis  and  a
decrease in printing charges.

The  management fee payable to the adviser is based on cash  flow
from operations of the Partnership adjusted for cash reserves and
fluctuated accordingly.  The decrease in the management  fee  for
1996 as compared to 1995 was a result of the decrease in revenues
and an increase in operating expenses at 1881 Pine Street.

Interest expense decreased in 1996 and 1995 as compared  to  1994
due to principal balance reductions.


Inflation

An   increase   in  inflation  could  affect  the   Partnership's
investments  through  increases in the  costs  of  operating  and
maintaining the properties and in various administrative costs of
the  Partnership  operations.  The adverse effect  inflation  may
have  on  operating expenses would be offset to  some  extent  by
increases  in  rental rates charged tenants at the  Partnership's
properties.  If  high  occupancy levels  are  maintained  at  the
properties,  increases in rental income should offset  increasing
property  operating  expenses with minimal  effect  on  operating
income.

<PAGE>
Item 8.  Financial Statements and Supplementary Data
<TABLE>
               USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                              BALANCE SHEETS
                        DECEMBER 31, 1996 AND 1995
<CAPTION>

                                                         1996              1995
ASSETS
<S>                                                  <C>               <C>             
Rental properties, net (notes 3 and 7)               $20,743,237        20,864,772
Investment in joint venture (note 4)                   5,183,456         5,451,804
Temporary investments, at cost which approximates
market value -
     Money market fund                                   753,756         1,905,792
Cash                                                      33,233            26,928
   Cash and cash equivalents                             786,989         1,932,720

Accounts receivable                                        5,600             7,600
Deferred charges and other assets                        634,161           525,512

                                                     $27,353,443        28,782,408


LIABILITIES AND PARTNERS' EQUITY

Mortgage payable (note 7)                            $ 1,131,500         1,192,098
Note payable to affiliate (notes 4, 7 and 8)           6,000,000         6,000,000
Accounts payable, including amounts due
   to affiliates of $29,082 and $44,045                   88,517            57,524
Other liabilities                                        102,743            18,926
         Total liabilities                             7,322,760         7,268,548

Partners' equity:
   General Partner:
      Capital contribution                                 1,000             1,000
      Cumulative net income                               43,804            52,678
      Cumulative distributions                          (127,834)         (121,876)
                                                         (83,030)          (68,198)
   Limited Partners (60,495 interests):
      Capital contributions, net of offering costs    28,432,650        28,432,650
      Cumulative net income                            4,336,617         5,215,136
      Cumulative distributions                       (12,655,554)      (12,065,728)
                                                      20,113,713        21,582,058
         Total Partners' equity                       20,030,683        21,513,860
                                                     $27,353,443        28,782,408


See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
             USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                        STATEMENTS OF OPERATIONS
              Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                         1996              1995             1994
INCOME
<S>                                                  <C>                 <C>              <C>     
Rental income                                        $ 1,227,447         1,687,107        2,522,901
Equity in earnings of joint venture                      234,212           215,804          228,842
Interest income, including $23 for 1995 and
  $473 for 1994 to affiliate (note 8)                     75,275           121,801           50,775
     Total income                                      1,536,934         2,024,712        2,802,518

EXPENSES
Direct expenses, including $55,629, $63,487
  and $55,195 to affiliate (note 8)                      524,608           317,618          233,111
Depreciation                                             905,195           959,962          952,743
General and administrative, including
  $140,202, $110,121 and $114,820
  to affiliates (note 8)                                 232,296           206,651          245,369
Management fee to affiliate (note 8)                      50,134            90,376           91,449
Interest, including $600,000 to
  affiliate (notes 7 and 8)                              712,094           717,615          722,651
     Total expenses                                    2,424,327         2,292,222        2,245,323

Net income (loss)                                    $  (887,393)         (267,510)         557,195

Net income (loss) per limited partnership interest   $    (14.52)            (4.38)            9.12



See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
               USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                       STATEMENTS OF PARTNERS' EQUITY
                Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                 General           Limited
                                                 Partner           Partners           Total
<S>                                        <C>                <C>              <C>        
Balances at December 31, 1993              $   (52,763)       23,110,121       23,057,358

Net income                                       5,572           551,623          557,195

Distributions                                   (9,166)         (907,426)        (916,592)

Balances at December 31, 1994                  (56,357)       22,754,318       22,697,961

Net loss                                        (2,675)         (264,835)        (267,510)

Distributions                                   (9,166)         (907,425)        (916,591)

Balances at December 31, 1995                  (68,198)       21,582,058       21,513,860

Net loss                                        (8,874)         (878,519)        (887,393)

Distributions                                   (5,958)         (589,826)        (595,784)

Balances at December 31, 1996              $   (83,030)       20,113,713       20,030,683


See accompanying notes to financial statements.
</TABLE>

<PAGE>
<TABLE>
            USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                      STATEMENTS OF CASH FLOWS
            Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                         1996              1995             1994
<S>                                                  <C>                <C>              <C>      
Cash flows from operating activities:
   Net income (loss)                                 $ (887,393)         (267,510)         557,195
   Adjustments to reconcile net income (loss) to net
      cash provided by operating activities:
         Depreciation                                   905,195           959,962          952,743
         Amortization                                    37,838            41,764           41,762
         Earnings from joint venture                   (234,212)         (215,804)        (228,842)
         Distributions from joint venture               502,560           558,400          725,920
         Loss on early retirement of assets              49,396            --                --
         Decrease (increase) in accounts receivable       2,000             1,398           (8,898)
         (Increase) decrease in deferred charges
           and other assets                            (146,487)           71,983           79,903
         Increase (decrease) in accounts payable,
           accrued expenses and other liabilities       114,810               876         (103,481)

           Cash provided by operating activities        343,707         1,151,069        2,016,302

Cash flows used in investing activities -
   Additions to rental properties                      (833,056)         (215,021)         (39,306)

Cash flows from financing activities:
   Repayment of mortgage payable                        (60,598)          (55,077)         (50,041)
   Distributions to partners                           (595,784)         (916,591)        (916,592)

           Cash used in financing activities           (656,382)         (971,668)        (966,633)

Net (decrease) increase in cash and cash equivalents (1,145,731)          (35,620)       1,010,363

Cash and cash equivalents at beginning
   of year                                            1,932,720         1,968,340          957,977

Cash and cash equivalents at end of year             $  786,989         1,932,720        1,968,340

See accompanying notes to financial statements.
</TABLE>

<PAGE>
          USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                December 31, 1996, 1995 and 1994


1. Organization, Summary of Significant Accounting  Policies  and
   Other

   USAA  Income  Properties  IV Limited  Partnership  is  engaged
   solely  in  the business of real estate investment; therefore,
   presentation  of  information about industry segments  is  not
   applicable.

   The   Partnership   owns   office   buildings   in   Milpitas,
   California; San Diego, California; St. Louis, Missouri  and  a
   joint  venture interest in a research and development property
   in  Chelmsford, Massachusetts.  The Partnership's  revenue  is
   subject  to  changes  in  the economic environments  of  these
   areas.

   The  General Partner, USAA Properties IV, Inc., is  a  wholly-
   owned  subsidiary of USAA Real Estate Company (Realco),  which
   is  a  wholly-owned  subsidiary of USAA  Capital  Corporation,
   which   is   a  wholly-owned  subsidiary  of  United  Services
   Automobile Association (USAA).

   The  preparation  of financial statements in  conformity  with
   generally  accepted accounting principles requires  management
   to  make  estimates and assumptions that affect  the  reported
   amounts   of   assets  and  liabilities  and   disclosure   of
   contingent  assets  and  liabilities  at  the  date   of   the
   financial statements and the reported amounts of revenues  and
   expenses  during the reporting period.  Actual  results  could
   differ from those estimates.

   Rental properties are valued at cost.  The carrying amount  of
   a  property is not changed for temporary fluctuations in value
   unless  the  carrying  value  is believed  to  be  permanently
   impaired.  In 1995, the Partnership adopted the provisions  of
   Financial  Accounting  Standards  Board  Statement  No.   121,
   "Accounting for Impairment of Long-Lived Assets and for  Long-
   Lived   Assets   to   Be  Disposed  Of,"  ("Statement   121").
   Statement 121 provides guidance for determining impairment  of
   long-lived  assets utilizing undiscounted future  cash  flows.
   The  assessment  for  and measurement of impairment  is  based
   upon  the  undiscounted  future cash  flows  and  fair  value,
   respectively,  of  the  individual  real  estate   properties.
   Based  on  the  provisions of Statement 121, the Partnership's
   long-lived  assets,   real  estate and  improvements  are  not
   considered  impaired.  The adoption of Statement  121  had  no
   financial statement impact.

<PAGE>
   Depreciation  is provided over the estimated useful  lives  of
   the  properties using the straight-line method.  The estimated
   lives  of the buildings and improvements is 30 years  (31.5  -
   39 years for Federal income tax purposes).

   Rental  income  is  recognized  under  the  operating  method,
   whereby  aggregate  rentals are reported  on  a  straight-line
   basis  as  income over the life of the lease.   Rental  income
   recognized  was  $36,947, $77,507 and $83,646  less  than  the
   amount  due  per  the  lease agreements for  the  years  ended
   December 31, 1996, 1995 and 1994, respectively.

   No  provision or credit for income taxes has been made as  the
   liability  for such taxes is that of the Partners rather  than
   the  Partnership.  The Partnership files its tax return on  an
   accrual basis.

   For  purposes  of  the Statements of Cash  Flows,  all  highly
   liquid  marketable securities that have a maturity at purchase
   of  three  months or less, and money market mutual  funds  are
   considered to be cash equivalents.
   
   Prior  financial statements of the Partnership  were  prepared
   on  a consolidated basis with USAA Chelmsford Associates Joint
   Venture.   For  all  periods  presented  in  the  accompanying
   financial  statements, the Partnership's  55.84%  interest  in
   USAA  Chelmsford  Associates Joint Venture  is  accounted  for
   using the equity method (note 4).

   For  financial reporting purposes, net income is allocated  1%
   to  the General Partner and 99% to the Limited Partners.   Net
   income  per  limited partnership interest is  based  upon  the
   limited  partnership interests outstanding at the end  of  the
   period and net income allocated to the Limited Partners.

   Cash  distributions  per  limited  partnership  interest  were
   $9.75  for  1996 and $15.00 for 1995 and 1994, and were  based
   on  the  limited  partnership interests  outstanding  at  each
   quarter  end and the cash distributions allocated  to  Limited
   Partners.



2. Partnership Agreement

   Pursuant  to the terms of the Partnership Agreement, Net  Cash
   from  Operations shall be allocated and paid 1% to the General
   Partner  and 99% to the Limited Partners.  Any Net  Cash  from
   Operations  received by a Limited Partner shall  count  toward
   his   6%  cumulative  Preferred  Return,  as  defined  in  the
   Partnership   Agreement.    Net   Proceeds   from   Sales   or
   Refinancings,  shall be allocated and paid 1% to  the  General
   Partner  and  99%  to the Limited Partners until  the  Limited
   Partners  have  been returned their Original Invested  Capital
   from  Net  Proceeds  from  Sales or Refinancings,  plus  their

<PAGE>
   Preferred  Return.   Second,  Net  Proceeds  from   Sales   or
   Refinancings  shall be allocated and paid to  the  Adviser  in
   payment  of  any unpaid Subordinated Disposition  Fee.  Third,
   Net  Proceeds  from Sales or Refinancings shall  be  allocated
   and  paid  90% to the Limited Partners and 10% to the  General
   Partner.

   Generally,  all  items of income, gain,  loss,  deduction  and
   credit  from  operations will be allocated 99% to the  Limited
   Partners and 1% to the General Partner.  Net gain or net  loss
   from  the  sale  or other disposition of a property  shall  be
   allocated as described in the Partnership Agreement.


3. Rental Properties

   Rental properties at December 31 consisted of the following:


                                       1996           1995
     Buildings and improvements   $ 24,125,536     23,360,493
     Land                            4,215,016      4,215,016
                                    28,340,552     27,575,509
     Less accumulated depreciation  (7,597,315)    (6,710,737)
                                  $ 20,743,237     20,864,772


4. Investment in Joint Venture

   On  May  31,  1988,  the  Partnership entered  into  the  USAA
   Chelmsford  Associates  Joint Venture with  USAA  Real  Estate
   Company,  the  parent  company of  the  Partnership's  General
   Partner,   for  the  ownership and  operation  of  the  Apollo
   Computer Research and Development Headquarters Building.   The
   Partnership   contributed  $9,000,000  for  its  55.8%   joint
   venture interest. The contribution consisted of $3,000,000  in
   remaining offering proceeds and $6,000,000 in proceeds from  a
   note  payable  to  USAA  Real Estate Company  (note  7).   The
   Partnership  accounts for its investment in the joint  venture
   using the equity method.

<PAGE>
   Summary  financial  information for the joint  venture  as  of
   December  31,  1996 and 1995 and for the years ended  December
   31, 1996, 1995 and 1994 follows:


                             ASSETS
                                            
                                       1996          1995
Cash                                $   416,888      346,262
Property, net                        24,288,391   24,957,807
Accounts receivable                      27,115       74,356
Deferred rent and other assets            4,663       64,102
                                    $24,737,057   25,442,527


                     LIABILITIES AND EQUITY

Liabilities:
Mortgage payable                    $15,287,583   15,446,788
Accounts payable                        167,247      232,946
                                     15,454,830   15,679,734

Equity:
  USAA Income Properties IV
    Limited Partnership               5,183,456    5,451,804
  Co-venturer - affiliate             4,098,771    4,310,989
         Total equity                 9,282,227    9,762,793
                                    $24,737,057   25,442,527


                           OPERATIONS

                           1996         1995         1994

Revenues               $ 2,789,770    2,771,135    2,771,501
Operating expenses         (28,053)     (63,018)     (30,885)
Other expenses              (9,802)      (8,967)      (5,484)
Depreciation              (929,511)    (895,877)    (895,877)
Interest expense        (1,402,970)  (1,416,805)  (1,429,437)
   Net income          $   419,434      386,468      409,818


Equity in net income:
  USAA Income Properties IV
   Limited Partnership $   234,212      215,804      228,843
 Co-venturer - affiliate   185,222      170,664      180,975
                       $   419,434      386,468      409,818

Cash distributions:
  USAA Income Properties IV
   Limited Partnership $   502,560      558,401      725,920
 Co-venturer - affiliate   397,440      441,599      574,080
                       $   900,000    1,000,000    1,300,000

<PAGE>
5. Minimum Future Rentals

   Operating  leases with tenants have remaining terms  from  one
   year  to five years.  Minimum future rentals are cash payments
   to  be  received  under non-cancelable leases over  the  lease
   terms  and  do  not necessarily represent rental income  under
   generally  accepted  accounting  principles.   Rental   income
   reported  in the Statements of Operations is recognized  under
   the  operating method, whereby aggregate rentals are  reported
   on  a  straight-line  basis as income over  the  life  of  the
   lease.  Approximate minimum future rentals are as follows:


            1997             $ 1,750,000
            1998               1,519,000
            1999               1,458,000
            2000               1,269,000
            2001                 984,000
            Thereafter            66,000
                             $ 7,046,000

6. Triple Net Leases

   During  1996,  1995  and 1994, the Partnership  had  ownership
   interests in one office building occupied by a single  tenant.
   The lease agreement between the tenant and the Partnership  is
   an  absolute triple net lease arrangement whereby  the  lessee
   is  required to make all payments for expenses related to  the
   use  and  occupation  of  the leased premises  including  real
   estate   taxes   and  assessments,  property   and   liability
   insurance,  repairs  and  maintenance,  utilities  and   other
   operating  costs  associated with the property.   Accordingly,
   net   operating  income  reflected  only  rental  income   and
   excluded  all  expenses directly related to the operations  of
   the  property as payments for such expenses are made  directly
   by the lessee.


7. Mortgage and Note Payable

   Mortgage payable at December 31:

                                           1996           1995
     9.625% first mortgage note,
     payable in monthly install-
     ments of $14,391, including
     interest, due August 1, 2008;
     secured by rental property
     with a depreciated cost of
     approximately  $5,902,000.      $   1,131,500      $ 1,192,098

   
   On   May   31,   1988,  $6,000,000  of  the  total  $9,000,000
   Partnership  investment  in USAA Chelmsford  Associates  Joint
   Venture  was borrowed from USAA Real Estate Company (note  4).

<PAGE>
   The  original  unsecured demand note payable  had  a  maturity
   date  of September 1, 1997 and included monthly interest  only
   payments  at  10%.   Subsequent  to  year-end,  the  note  was
   increased  to  $7,200,000 and was extended to  March  1,  1999
   with a decrease in the interest rate from 10% to 9%.

   Aggregate  maturities of mortgages and note payable  for  1997
   through  2001  are $66,714, $73,426, $7,280,814,  $88,925  and
   $97,891, respectively.

   Cash  payments  for  interest expense were $712,094,  $717,615
   and $722,651 for 1996, 1995 and 1994, respectively.


8. Transactions with Affiliates

   USAA  Real  Estate Company (the Adviser) may receive  property
   acquisition fees of up to 5% of gross offering proceeds,  real
   estate  brokerage  commissions of up to 2%  of  the  aggregate
   selling  prices of properties sold and management fees  of  9%
   of adjusted cash flow from operations.

   Through  January 1995, a portion of the Partnership's  working
   capital  reserve  and other available funds were  invested  in
   USAA  Mutual Fund, Inc. and earned interest thereon at  market
   rates.

   Quorum  Real  Estate Services Corporation (also known as USAA
   Realty   Company),  an  affiliate  of  the  General   Partner,
   provides  property  management and leasing  services  for  the
   properties  and may receive fees of up to 6% of property  cash
   receipts for those services.

<PAGE>
   A summary of transactions with affiliates follows:
<TABLE>
<CAPTION>
                         Reimbursement     Interest      Management         Lease            Interest
                        of Expenses (1)     Income          Fees         Commissions       Expense (2)      Total
<S>                <C>                    <C>            <C>               <C>              <C>           <C>           
USAA Mutual
Fund, Inc.:
  1996             $          --            --              --                --                --            --
  1995                        --           (23)             --                --                --           (23)
  1994                        --          (473)             --                --                --          (473)

USAA Real Estate
Company:
  1996                    109,255            --          50,134                --           600,000       759,389
  1995                    100,634            --          90,376                --           600,000       791,010
  1994                    105,955            --          91,449                --           600,000       797,404

Quorum Real Estate
Services Corporation:
  1996                     33,042            --          22,587            30,947                --        86,576
  1995                     36,559            --          26,928             9,487                --        72,974
  1994                     22,556            --          32,639             8,865                --        64,060


(1)  Reimbursement of expenses represents amounts paid or accrued as reimbursement of expenses
     incurred on behalf of the Partnership at actual cost and does not include any mark-up or
     items normally considered as overhead.
(2)  Represents interest expense incurred on a note payable.
</TABLE>
<PAGE>
9. Income Taxes

   A  reconciliation of financial statement net income (loss)  to
   taxable income (loss) follows:

                                           1996       1995         1994

   Net income (loss)-financial statement
        basis                        $   (887,393)   (267,510)    557,195
   Adjusted by:
     Taxable income over financial
      statement income - USAA
         Chelmsford   Associates           72,054      99,037     227,432
     Increase in deferred rent             36,947      77,506      83,647
     Excess financial statement depreciation
         over tax depreciation            166,438     233,836     230,903
     Other reconciling items              114,633     (20,780)    (46,070)
   Taxable income (loss)               $ (497,321)    122,089   1,053,107


10. Major Customer Information

   During  1996, the Partnership recorded approximately $420,000,
   $384,000  and  $292,000  of rental income  from  leases  which
   represented  approximately 34%, 31% and 24%  of  total  rental
   income, respectively.

   During  1995, the Partnership recorded approximately $543,000,
   $464,000,  $414,000 and $234,000 of rental income from  leases
   which  represented  approximately 32%, 25%,  23%  and  14%  of
   total rental income, respectively.

   During    1994,   the   Partnership   recorded   approximately
   $1,306,000,  $561,000  and  $408,000  of  rental  income  from
   leases  which represented approximately 52%, 26%  and  16%  of
   total rental income, respectively.
   
   In  addition,  see  note 4 regarding rental  income  from  the
   single  tenant  of  the  building  owned  by  USAA  Chelmsford
   Associates Joint Venture.


11. Fair Value of Financial Instruments

   The  carrying  value of cash and cash equivalents approximates
   fair value due to the short maturity of these instruments.
   
   The  fair value of mortgages and note payable at December  31,
   1996  and  1995  was $7,105,264 and $7,099,744,  respectively,
   and  was estimated by discounting the future cash flows  using
   interest rates currently being offered for mortgage loans  and
   notes with similar characteristics and maturities.

<PAGE>
                  Independent Auditors' Report
                                

The Partners
USAA Income Properties IV Limited Partnership:

   We  have  audited  the  accompanying balance  sheets  of  USAA
Income Properties IV Limited Partnership as of December 31,  1996
and  1995,  and  the related statements of operations,  partners'
equity,  and  cash flows for each of the years in the  three-year
period  ended December 31, 1996.  These financial statements  are
the   responsibility  of  the  Partnership's   management.    Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

   We  conducted our audits in accordance with generally accepted
auditing  standards.  Those standards require that  we  plan  and
perform  the  audit to obtain reasonable assurance about  whether
the  financial statements are free of material misstatement.   An
audit  includes  examining, on a test basis, evidence  supporting
the  amounts  and  disclosures in the financial  statements.   An
audit also includes assessing the accounting principles used  and
significant  estimates made by management, as well as  evaluating
the  overall  financial statement presentation.  We believe  that
our audits provide a reasonable basis for our opinion.

   In  our  opinion, the financial statements referred  to  above
present  fairly, in all material respects, the financial position
of  USAA  Income Properties IV Limited Partnership as of December
31, 1996 and 1995, and the results of its operations and its cash
flows  for  each  of  the  years in the three-year  period  ended
December   31,  1996,  in  conformity  with  generally   accepted
accounting principles.






                                     /S/KPMG PEAT MARWICK LLP
                                     KPMG PEAT MARWICK LLP


San Antonio, Texas
January 31, 1997, except for
paragraph 10 of note 1, as to
which the date is November 3, 1997


<PAGE>
                            Part III


Item 13.   Certain Relationships and Related Transactions


       The  Partnership  is permitted to engage  in  various
transactions   involving   the  General   Partner   or   its
affiliates.

       Pursuant  to the Advisory Agreement, the Adviser,  an
affiliate  of  the  General Partner,  can  receive,  in  the
aggregate,  property acquisition fees of up  to  5%  of  the
gross  offering proceeds; real estate brokerage  commissions
of  up  to  2% of the aggregate selling prices of properties
sold;  and 9% of adjusted cash flow from operations  as  its
management fee.

       An  affiliate of the General Partner, USAA Investment
Management Company, received selling commissions equal to 4%
of  the  gross  proceeds from sales of  limited  partnership
interests and an expense allowance equal to 2% of the  gross
offering  proceeds for organizational and offering expenses.
USAA  Investment  Management Company may receive  a  maximum
annual  advisory  fee  of 1/2 of 1% of  the  amount  of  any
temporary  investment in a money market fund or mutual  fund
sponsored  by USAA or any affiliate of USAA.  A  portion  of
the   Partnership's  working  capital  reserve   and   other
available funds were invested in USAA Mutual Fund, Inc.

       An  affiliate  of  the General Partner,  Quorum  Real
Estate  Services  Corporation (also  known  as  USAA  Realty
Company), provides property management and leasing  services
for  the  properties and may receive fees of  up  to  6%  of
property cash receipts for those services.

    A  summary  of transactions with affiliates follows  for
the years ended December 31, 1996, 1995 and 1994:

<PAGE>
<TABLE>
<CAPTION>
                    Reimbursement     Interest      Management         Lease            Interest
                   of Expenses (1)     Income          Fees         Commissions       Expense (2)        Total
<S>                <C>                    <C>           <C>               <C>              <C>           <C>   
USAA Mutual
Fund, Inc.:
  1996             $          --            --              --                --                --            --
  1995                        --           (23)             --                --                --           (23)
  1994                        --          (473)             --                --                --          (473)

USAA Real Estate
Company:
  1996                   109,255            --          50,134                --           600,000       759,389
  1995                   100,634            --          90,376                --           600,000       791,010
  1994                   105,955            --          91,449                --           600,000       797,404

Quorum Real Estate
Services Corporation:
  1996                    33,042            --          22,587            30,947                --        86,576
  1995                    36,559            --          26,928             9,487                --        72,974
  1994                    22,556            --          32,639             8,865                --        64,060


(1)  Reimbursement of expenses represents amounts paid or accrued as reimbursement of expenses
     incurred on behalf of the Partnership at actual cost and does not include any mark-up or
     items normally considered as overhead.
(2)  Represents interest expense incurred on a note payable.
</TABLE>
<PAGE>
                            PART IV


Item 14.   Exhibits,   Financial  Statement   Schedule   and
           Reports on Form 8-K

       The  following documents are filed as  part  of  this
report.

(a)     1. Financial Statements
           
           The  following  financial  statements,  notes  to
           financial  statements  and independent  auditors'
           report are included in Part II Item 8:

           Balance Sheets as of
             December 31, 1996 and 1995

           Statements of Operations
             for the Years Ended December 31,
             1996, 1995 and 1994

           Statements of Partners'
             Equity for the Years Ended
             December 31, 1996, 1995 and 1994

           Statements of Cash Flows
             for the Years Ended December 31,
             1996, 1995 and 1994

           Notes to Financial Statements

           Independent Auditors' Report

        2.Financial Statement Schedule

           Real Estate and Accumulated
             Depreciation as of December 31,
             1996 (Schedule III)

           Independent Auditors' Report
           
       All   other  schedules  have  been  omitted  as   the
schedules  are  not required under the related instructions,
are  not applicable, or the information required thereby  is
set forth in the financial statements or the notes thereto.

<PAGE>
Item 14.(a) 3.  Exhibits


          Exhibit
            No.              Description

            3(a)      Restated Certificate and Agreement  of
                      Limited Partnership dated as of June 8,
                      1987, attached as Exhibit A to the
                      Partnership's  Prospectus  dated  June
                      8,   1987   filed  pursuant  to   Rule
                      424(b),    (Regis.    No.    33-11892)
                      incorporated    herein     by     this
                      reference.

            27        Financial Data Schedule

            99(a)     "Glossary" pages 87-89 contained  in
                      the Prospectus dated June 8, 1987,
                      filed as a part of Amendment No. 2 to
                      the Registration Statement on Form S-11
                      (File No. 33-11892).

           99(b)      "Management Compensation" at pages 12-
                      15 and "Income and Losses and Cash 
                      Distributions" at pages 46-49 of the
                      Prospectus, dated June 8,  1987, filed
                      as part of Amendment No. 2 to the
                      Registration Statement on Form S-11 (File
                      No. 33-11892).

(b)  Reports filed on Form 8-K

    No  Current  Reports on Form 8-K have been filed  during
the last quarter covered by this Form 10-K.
       
(d)  The  following USAA Chelmsford Associates Joint Venture
       Financial Statements and Financial Statement Schedule are
       filed as part of this report:

       FINANCIAL STATEMENTS:
       
       Balance Sheets as of December 31, 1996 and 1995
       
       Statements of Income and Joint Venturers' Equity for
          the years ended December 31, 1996, 1995 and 1994
       
       Statements   of  Cash  Flows  for  the  years   ended
        December 31, 1996, 1995 and 1994
       
       Notes to Financial Statements
       
       Independent Auditors' Report on Financial  Statements
        and Financial Statement Schedule

       FINANCIAL STATEMENT SCHEDULE:
       
       Real Estate and Accumulated Depreciation as of
         December 31, 1996 (Schedule III)
       

<PAGE>
<TABLE>
       
SCHEDULE III        USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
                        Real Estate and Accumulated Depreciation
                                 December 31, 1996
<CAPTION>

                                                                                             Cost Capitalized
                                                            Initial Cost to                   Subsequent to
                                                               Partnership                     Acquisition
                                                                     Buildings
   Year of           Date                                                and                                Carrying
 Construction      Acquired        Description           Land        Improvements      Improvements           Costs
<S>             <C>             <C>               <C>                   <C>                 <C>                <C>
     1986       July 20, 1987   Linear Technology
                                Office Bldg.,
                                Milpitas, CA      $       777,000        4,936,164          --                 --

     1987       Oct. 26, 1987   Eastman Kodak
                                Office Bldg.,
                                San Diego, CA           2,425,416        4,419,437           1,543,630         --

     1987       Dec. 31, 1987   1881 Pine Street
                                Office Bldg.,
                                St. Louis, MO             500,000       12,428,162           1,563,482         --
                                                  $     3,702,416       21,783,763           3,107,112         --

<CAPTION>
                                Gross Amount at Which
                                 Carried at Close of
                                        Period
                                      Buildings      Total Investment   Accumulated         Related
                                         and            Properties     Depreciation        Mortgages
Description               Land        Improvements         (2)(4)         (1) (3)           Payable (5)
<S>                     <C>             <C>                 <C>                <C>         <C>    
Linear Technology
Office Bldg.,
Milpitas, CA              777,000        4,936,164           5,713,164         1,549,380       --

Eastman Kodak
Office Bldg.,
San Diego, CA           2,425,416        5,778,341           8,203,757         2,302,058   1,131,500

1881 Pine Street
Office Bldg.,
St. Louis, MO           1,012,600       13,411,031          14,423,631         3,745,877       --
                        4,215,016       24,125,536          28,340,552         7,597,315   1,131,500
<PAGE>
Schedule III (continued)

NOTES:
(1) Depreciation is based on a 30 year life, straight-line method for buildings.  Tenant improvements
    are amortized over the life of the related lease, straight-line method.
(2) Reconciliation of real estate:                                  
    Balance at December 31, 1993                           $     27,321,183
      Additions during period-improvements                           39,306
    Balance at December 31, 1994                                 27,360,489
      Additions during period-improvements                          215,020
    Balance at December 31, 1995                                 27,575,509
      Additions during period-improvements                          833,055
      Deductions during period-retirements                          (68,012)
    Balance at December 31, 1996                           $     28,340,552

(3) Reconciliation of accumulated depreciation:
    Balance at December 31, 1993                           $      4,798,032
      Depreciation during period                                    952,743
    Balance at December 31, 1994                                  5,750,775
      Depreciation during period                                    959,962
    Balance at December 31, 1995                                  6,710,737
      Depreciation during period                                    905,195
      Deductions during period-retirements                          (18,617)
    Balance at December 31, 1996                           $      7,597,315

(4) The aggregate cost of real estate owned by the Partnership at December 31, 1996 for Federal
    income tax purposes is $28,785,059.
(5) The investment property is pledged as security for the mortgage payable for which there is no
    recourse to the Partnership.
</TABLE>
<PAGE>
THE PARTNERS
USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP:


Under date of January 31, 1997, except for paragraph 10 of
note 1, as to which the date is November 3, 1997, we reported
on the  balance sheets  of USAA Income Properties IV Limited 
Partnership  as of December 31, 1996 and 1995, and the related
statements of operations, partners' equity, and cash flows for
each of the years in the three-year period ended December 31, 
1996.   In connection  with our audits of the aforementioned
financial statements,  we  also  have audited  the  related
financial statement  schedule as listed in Item 14(a)2. This
financial statement   schedule   is   the   responsibility
of the Partnership's management. Our responsibility is  to
express an  opinion on the financial statement schedule based
on our audits.

In  our  opinion,  such financial statement  schedule,  when
considered  in  relation to the basic  financial  statements
taken as a whole, presents fairly, in all material respects,
the information set forth therein.





                                        /s/KPMG PEAT MARWICK LLP
                                           KPMG PEAT MARWICK LLP

San Antonio, Texas
January 31, 1997, except
for paragraph 10 of note 1,
as to which the date is
November 3, 1997

<PAGE>
<TABLE>
                   USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                                BALANCE SHEETS
                           DECEMBER 31, 1996 AND 1995
<CAPTION>

                                                       1996              1995
ASSETS
<S>                                                 <C>                 <C>    
Rental property, net                              $ 24,288,391        24,957,807
Temporary investments, at cost which approximates
market value -
     Money market fund                                   223,756           311,547
Cash                                                     193,132            34,715
   Cash and cash equivalents                             416,888           346,262
Accounts receivable                                       27,115            74,356
Deferred charges and other assets                          4,663            64,102

                                                    $ 24,737,057        25,442,527


LIABILITIES AND JOINT VENTURERS' EQUITY

Mortgage payable                                    $ 15,287,583        15,446,788
Accounts payable and other liabilities, including
   amounts due to affiliates of $581 and $271            167,247           232,946
         Total liabilities                            15,454,830        15,679,734

Joint venturers' equity:
   USAA Income Properties IV Limited Partnership:
      Capital contribution                             9,000,000         9,000,000
      Cumulative net income                            1,862,384         1,628,172
      Cumulative distribution                         (5,678,928)       (5,176,368)
                                                       5,183,456         5,451,804
  USAA Real Estate Company:
      Capital contributions                            7,117,011         7,117,011
      Cumulative net income                            1,472,832         1,287,610
      Cumulative distributions                        (4,491,072)       (4,093,632)
                                                       4,098,771         4,310,989
         Total joint venturers' equity                 9,282,227         9,762,793
                                                    $ 24,737,057        25,442,527

See accompanying notes to financial statements.

</TABLE>
<PAGE>
<TABLE>
                   USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                            STATEMENTS OF INCOME
                 Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                                 1996              1995              1994
INCOME
<S>                                          <C>                 <C>               <C> 
Rental income                                $ 2,784,040         2,763,395         2,753,659
Interest income, including $4 for 1995 and
  $69 for 1994 from affiliate                     34,898            22,247            22,613
     Total income                              2,818,938         2,785,642         2,776,272

EXPENSES
Direct expenses, including $28,307, $25,874
  and $30,479 to affiliate                        57,221            77,525            35,656
Depreciation                                     929,511           895,877           895,877
General and administrative, including
  $4,916, $8,251 and $4,992 to affiliates          9,802             8,967             5,484
Interest                                       1,402,970         1,416,805         1,429,437
     Total expenses                            2,399,504         2,399,174         2,366,454

Net income                                    $  419,434           386,468           409,818

See accompanying notes to financial statements.

</TABLE>
<PAGE>
<TABLE>
                     USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                       STATEMENTS OF JOINT VENTURERS' EQUITY
                   Years Ended December 31, 1996, 1995 and 1994
<CAPTION>

                                            USAA Income
                                             Properties         USAA Real
                                             IV Limited          Estate
                                             Partnership         Company            Total
<S>                                     <C>                       <C>              <C>  
Balances at December 31, 1993           $       6,291,478         4,975,029        11,266,507

Net income                                        228,842           180,976           409,818

Distributions                                    (725,920)         (574,080)       (1,300,000)

Balances at December 31, 1994                   5,794,400         4,581,925        10,376,325

Net income                                        215,804           170,664           386,468

Distributions                                    (558,400)         (441,600)       (1,000,000)

Balances at December 31, 1995                   5,451,804         4,310,989         9,762,793

Net income                                        234,212           185,222           419,434

Distributions                                    (502,560)         (397,440)         (900,000)

Balances at December 31, 1996                 $ 5,183,456         4,098,771         9,282,227

See accompanying notes to financial statements.

</TABLE>
<PAGE>
<TABLE>
                   USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                           STATEMENTS OF CASH FLOWS
                  Years Ended December 31, 1996, 1995 and 1994
<CAPTION>
  

                                                          1996              1995              1994
<S>                                              <C>                      <C>               <C>                 
Cash flows from operating activities:
   Net income                                    $         419,434           386,468           409,818
   Adjustments to reconcile net income to net
      cash provided by operating activities:
         Depreciation                                      929,511           895,877           895,877
         Decrease in receivables and other assets          106,680            41,407            86,699
         Increase (decrease) in accounts payable
           and other liabilities                           (65,699)           (2,303)          230,864

           Net cash provided by operating activities     1,389,926         1,321,449         1,623,258

Cash flows used in investing activities -
   Additions to properties                                (260,095)          (70,220)           --

Cash flows from financing activities:
   Principal repayment                                    (159,205)         (145,371)         (132,739)
   Distributions                                          (900,000)       (1,000,000)       (1,300,000)

           Net cash used in financing activities        (1,059,205)       (1,145,371)       (1,432,739)

Net increase in cash and cash equivalents                   70,626           105,858           190,519

Cash and cash equivalents at beginning
   of year                                                 346,262           240,404            49,885

Cash and cash equivalents at end of year                $  416,888           346,262           240,404

See accompanying notes to financial statements.

</TABLE>

<PAGE>
            USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                                
                  NOTES TO FINANCIAL STATEMENTS
                December 31, 1996, 1995 and 1994


A. Organization, Summary of Significant Accounting  Policies  and
   Other

   USAA  Chelmsford Associates Joint Venture (the Joint Venture),
   is  a  corporate  joint venture formed  in  1988.   The  Joint
   Venture  is owned 55.84% by USAA Income Properties IV  Limited
   Partnership  (the Partnership) and 44.16% by USAA Real  Estate
   Company  (collectively, the Venturers).  The Joint Venture  is
   engaged solely in the business of real estate investment,  and
   is  the  sole  beneficiary of a trust  which  owns  an  office
   building  in  Chelmsford, Massachusetts.  The building  has  a
   single  tenant  occupying  100% of the  available  space.   As
   such,  the  operations  of the joint venture  are  subject  to
   changes  in  the economic environment in the area as  well  as
   the stability of the tenant.
   
   The  preparation  of financial statements in  conformity  with
   generally  accepted accounting principles requires  management
   to  make  estimates and assumptions that affect  the  reported
   amounts   of   assets  and  liabilities  and   disclosure   of
   contingent  assets  and  liabilities  at  the  date   of   the
   financial statements and the reported amounts of revenues  and
   expenses  during the reporting period.  Actual  results  could
   differ from those estimates.

   Rental property is valued at cost.  The carrying amount  of
   a  property is not changed for temporary fluctuations in value
   unless  the  carrying  value  is believed  to  be  permanently
   impaired.   In 1995, the Joint Venture adopted the  provisions
   of  Financial  Accounting Standards Board Statement  No.  121,
   "Accounting for Impairment of Long-Lived Assets and for  Long-
   Lived   Assets   to   Be  Disposed  Of,"  ("Statement   121").
   Statement 121 provides guidance for determining impairment  of
   long-lived  assets utilizing undiscounted future  cash  flows.
   The  assessment  for  and measurement of impairment  is  based
   upon  the  undiscounted  future cash  flows  and  fair  value,
   respectively,  of  the  individual  real  estate   properties.
   Based  on the provisions of Statement 121, the Joint Venture's
   long-lived  assets,   real  estate and  improvements  are  not
   considered  impaired.  The adoption of Statement  121  had  no
   financial statement impact.
   
   Depreciation  is provided over the estimated useful  life  of
   the  property using the straight-line method.  The estimated
   lives  of the buildings and improvements is 30 years  (31.5  -
   39 years for Federal income tax purposes).
   

<PAGE>
   For  purposes  of  the Statements of Cash  Flows,  all  highly
   liquid  marketable securities that have a maturity at purchase
   of  three  months or less, and money market mutual  funds  are
   considered to be cash equivalents.
   
   Rental  income  reported  in  the  Statements  of  Income   is
   recognized  under  the  operating  method,  whereby  aggregate
   rentals  are reported on a straight-line basis as income  over
   the  life  of the lease.  Rental income was $59,289,  $65,274,
   and  $65,274 less than the amount due per the lease  agreement
   for  the  years  ended  December 31,  1996,  1995,  and  1994,
   respectively.
   
   For  financial  reporting purposes, net  income  is  allocated
   based on the ownership interests of the Venturers.
   
   No  provision or credit for income taxes has been made as  the
   liability for such taxes is that of the Venturers.  The  Joint
   Venture is treated as a partnership for tax purposes.


B. Joint Venture Agreement

   Pursuant  to  the  terms of the Joint Venture Agreement,  cash
   flow,  if  any, attributable to each fiscal quarter  shall  be
   applied  and distributed within 45 days after the end of  such
   quarter.
   
   Generally,  all  items of income, gain,  loss,  deduction  and
   credit  from operations will be allocated to the Venturers  in
   relation  to  their ownership percentages.  Net  gain  or  net
   loss  from  the sale or other disposition of a property  shall
   be allocated as specified in the Joint Venture Agreement.
   

C. Rental Property

   Rental property at December 31 consisted of the following:


                                       1996           1995
     Building and improvements    $ 27,201,665     26,941,570
     Land                            4,805,000      4,805,000
                                    32,006,665     31,746,570
     Less accumulated depreciation  (7,718,274)    (6,788,763)
                                  $ 24,288,391     24,957,807

   Such  property  is pledged as collateral for  the  mortgage
   payable(see Note F).

<PAGE>
D. Minimum Future Rentals

   The  operating  lease with the single tenant has  a  remaining
   term of approximately four years.  Minimum future rentals  are
   cash  payments  to be received under the non-cancelable  lease
   over  the  lease term and do not necessarily represent  rental
   income   under   generally  accepted  accounting   principles.
   Approximate minimum future rentals are as follows:


            1997             $ 2,000,000
            1998               2,000,000
            1999               2,000,000
            2000                 833,000
            2001                   --
            Thereafter             --
                             $ 6,833,000

E. Triple Net Lease

   During  1996,  1995  and  1994, the  lease  agreement  was  an
   absolute  triple net lease arrangement whereby the  lessee  is
   required to make all payments for expenses related to the  use
   and  occupation of the leased premises including  real  estate
   taxes  and  assessments,  property  and  liability  insurance,
   repairs  and maintenance, utilities and other operating  costs
   associated   with   the   property.      Accordingly,  net 
   income  reflected only rental income and excluded all expenses
   directly  related  to  the  operations  of  the  property   as
   payments for such expenses are made directly by the lessee.


F. Mortgage Payable

   Mortgage payable at December 31:

                                             1996            1995
     9.125% first mortgage note,
     due August 1, 2001, interest
     only payable monthly for the
     first five years; interest and
     principal of $130,181 are
     payable monthly for the
     remaining term with a balloon
     payment of $14,361,580; secured
     by rental property with a
     depreciated cost of approximately
     $24,288,000.                          $ 15,287,583   15,446,788

   Maturities of the mortgage payable for 1997 through  2001  are
   $174,356,   $190,948,  $209,120,  $229,021  and   $14,484,138,
   respectively.

   Cash   payments   for   interest  expense   were   $1,402,970,
   $1,416,805   and   $1,429,437  for  1996,   1995   and   1994,
   respectively.

<PAGE>
G. Transactions with Affiliates

   Through  January  1995,  a  portion  of  the  Joint  Venture's
   working  capital  reserve  and  other  available  funds   were
   invested  in  USAA  Mutual  Fund,  Inc.  and  earned  interest
   thereon at market rates.

   Quorum  Real  Estate Services Corporation (also known as  USAA
   Realty  Company), an affiliate of the General Partner  of  the
   Partnership,   provides   property  management   and   leasing
   services for the property and may receive fees of up  to  6%
   of property cash receipts for those services.
<TABLE>
   A summary of transactions with affiliates follows:
<CAPTION>

                         Reimbursement         Interest      Management
                        of Expenses (1)         Income          Fees            Total
<S>                <C>                               <C>          <C>             <C>  
USAA Mutual
Fund, Inc.:
  1996             $                    --            --              --              --
  1995                                  --            (4)             --              (4)
  1994                                  --           (69)             --             (69)

USAA Real Estate
Company:
  1996                               4,916            --              --           4,916
  1995                               8,251            --              --           8,251
  1994                               4,992            --              --           4,992

Quorum Real Estate
Services Corporation:
  1996                                  --            --          28,307          28,307
  1995                                  --            --          25,874          25,874
  1994                                  --            --          30,479          30,479


(1)  Reimbursement of expenses represents amounts paid or accrued as reimbursement of expenses
     incurred on behalf of the Joint Venture at actual cost and does not include any mark-up or
     items normally considered as overhead.
</TABLE>
<PAGE>
H. Fair Value of Financial Instruments

   The   carrying   value  of  cash  and  cash   equivalents
   approximates  fair  value due to the  short  maturity  of
   these  instruments.   The  fair  value  of  the  mortgage
   payable  at  December 31, 1996 and 1995  was  $14,807,093
   and  $14,578,164,  respectively,  and  was  estimated  by
   discounting  the future cash flows using  interest  rates
   currently  being  offered for mortgage  loans  and  notes
   with similar characteristics and maturities.

<PAGE>
<TABLE>
SCHEDULE III      USAA CHELMSFORD ASSOCIATES JOINT VENTURE
                  Real Estate and Accumulated Depreciation
                              December 31, 1996
<CAPTION>

                                                                                                   Cost Capitalized
                                                                   Initial Cost to                 Subsequent to
                                                                   Joint Venture                   Acquisition
                                                                        Buildings
  Year of           Date                                                   and                                    Carrying
Construction      Acquired          Description           Land        Improvements         Improvements             Costs
<S>          <C>                 <C>                     <C>              <C>                        <C>             <C>
    1987     May 31, 1988        Apollo Computer
                                 Research and
                                 Development
                                 Headquarters
                                 Building,
                                 Chelmsford, MA          4,800,000        26,422,889                 783,775         --


<CAPTION>
                                    Gross Amount at Which
                                     Carried at Close of
                                          Period
                                   Buildings        Total Investment        Accumulated        Related
                                      and              Properties          Depreciation       Mortgages
Description           Land        Improvements            (2)(4)               (1) (3)        Payable (5)
<S>                <C>              <C>                     <C>                <C>             <C>     <C>   
Apollo Computer
Research and
Development
Headquarters
Building,
Chelmsford, MA     4,805,000        27,201,665              32,006,665         7,718,274       15,287,583

<PAGE>
Schedule III (continued)

NOTES:
(1) Depreciation is based on a 30 year life, straight-line method for buildings.
    Tenant improvements are amortized over the life of the related lease,
    straight-line method.

(2) Reconciliation of real estate:
    Balance at December 31, 1993                        $      31,676,349
      Additions during period-improvements                         --
    Balance at December 31, 1994                               31,676,349
      Additions during period-improvements                         70,221
    Balance at December 31, 1995                               31,746,570
      Additions during period-improvements                        260,095
    Balance at December 31, 1996                        $      32,006,665

(3) Reconciliation of accumulated depreciation:
    Balance at December 31, 1993                        $       4,997,009
      Depreciation during period                                  895,877
    Balance at December 31, 1994                                5,892,886
      Depreciation during period                                  895,877
    Balance at December 31, 1995                                6,788,763
      Depreciation during period                                  929,511
    Balance at December 31, 1996                        $       7,718,274


(4) The aggregate cost of real estate owned by the joint venture at December 31, 1996
    for Federal income tax purposes is $32,028,062.
   
(5) The investment property is pledged as security for the mortgage payable for which there is no
    recourse.
</TABLE>
<PAGE>


                  Independent Auditors' Report

The Joint Venturers
USAA Chelmsford Associates Joint Venture:

   We  have  audited  the  accompanying balance  sheets  of  USAA
Chelmsford Associates Joint Venture as of December 31,  1996  and
1995,  and  the  related statements of income,  joint  venturers'
equity,  and  cash flows for each of the years in the  three-year
period  ended December 31, 1996.  These financial statements  are
the  responsibility  of  the  Joint  Venture's  management.   Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

   We  conducted our audits in accordance with generally accepted
auditing  standards.  Those standards require that  we  plan  and
perform  the  audit to obtain reasonable assurance about  whether
the  financial statements are free of material misstatement.   An
audit  includes  examining, on a test basis, evidence  supporting
the  amounts  and  disclosures in the financial  statements.   An
audit also includes assessing the accounting principles used  and
significant  estimates made by management, as well as  evaluating
the  overall  financial statement presentation.  We believe  that
our audits provide a reasonable basis for our opinion.

   In  our  opinion, the financial statements referred  to  above
present  fairly, in all material respects, the financial position
of  USAA  Chelmsford Associates Joint Venture as of December  31,
1996  and  1995, and the results of its operations and  its  cash
flows  for  each  of  the  years in the three-year  period  ended
December   31,  1996,  in  conformity  with  generally   accepted
accounting  principles.   Also,  in  our  opinion,  the   related
financial statement schedule, when considered in relation to  the
basic  financial statements taken as a whole, present fairly,  in
all material respects, the information set forth therein.




                                         /S/KPMG PEAT MARWICK LLP
                                            KPMG PEAT MARWICK LLP


San Antonio, Texas
January 31, 1997

<PAGE>                                
                           SIGNATURES

Pursuant  to  the  requirements of Section 13  or  15(d)  of  the
Securities  and Exchange Act of 1934, USAA INCOME  PROPERTIES  IV
LIMITED  PARTNERSHIP has duly caused this report to be signed  on
its behalf by the undersigned thereunto duly authorized:

USAA INCOME PROPERTIES IV LIMITED PARTNERSHIP
(Registrant)

By: USAA INCOME PROPERTIES IV, INC.,
General Partner

By: /s/Edward B. Kelley
Edward B. Kelley
Chairman, President,
Chief Executive Officer
and Director

Date: November 3, 1997

Pursuant  to the requirements of the Securities Exchange  Act  of
1934,  this report has been signed below by the following persons
on  behalf  of the registrant and in the capacities  and  on  the
dates indicated.


/s/Edward B. Kelley                     Date: November 3, 1997
Edward B. Kelley
Director, Chairman of the Board,
President and Chief Executive Officer
of the General Partner


/s/T. Patrick Duncan                    Date: November 3, 1997
T. Patrick Duncan
Director, Vice Chairman,
Senior Vice President - Real Estate
Operations of the General Partner


/s/Randal R. Seewald                    Date: November 3, 1997
Randal R. Seewald
Director, Vice President,
Secretary and Legal Counsel