SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, D.C. 20549


                          FORM 10-Q


         QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
           OF THE SECURITIES EXCHANGE ACT OF 1934


              For Quarter Ended September 30, 2003
              Commission File Number 33-19316


       Qualified Housing Partners Limited Partnership

   (Exact name of registrant as specified in its charter)


        North Carolina                      56-1589469
 (State or other jurisdiction            (I.R.S. Employer
incorporation or organization)        Identification Number)

                          Suite 220
                     4700 Homewood Court
                Raleigh, North Carolina 27609
     (Address of principal executive offices)(Zip Code)


  Registrant's telephone number, including area code:
                        (919)787-4243


Indicate by a 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 such shorter period the registrant has
been 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 whether the registrant is an accelerated filer (as
defined by Rule 12b-2 of the Act.).  Yes                  No  X

As of September 30, 2003, there were 8,673 units of limited partnership
interests in registrant outstanding, $1,000 per unit, and the aggregate
value of such units was $8,673,000.  Of such units, 8,653 having an
aggregate value of $8,653,000, were held by limited partners deemed
by the registrant to be non-affiliates.









                           PART I

                    FINANCIAL INFORMATION
       QUALIFIED HOUSING PARTNERS LIMITED PARTNERSHIP





Item 1:  Financial Statements

     - Consolidated Balance Sheets

     - Unaudited Consolidated Statements of Income and
       Expenses (Three Months)

     - Unaudited Consolidated Statements of Income and
       Expenses (Nine Months)

     - Unaudited Consolidated Statements of Cash Flows

     - Unaudited Notes to Financial Statements




Item 2:  Management's Discussion

     - Liquidity and Capital Resources

     - Results of Operations

     - Tax Credits



Item 4:  Controls and Procedures

The Partnership carried out an evaluation under the supervision
and with the participation of the Partnership's management,
including the Partnership's Chief Executive Officer and Chief
Financial Officer, of the effectiveness of the design and
operation of the Partnership's disclosure controls and procedures
as of September 30, 2003, pursuant to Securities Exchange Act
Rule 13a-15(e). Based upon that evaluation, the Chief Executive
Officer and Chief Financial Officer concluded that the
Partnership's disclosure controls and procedures are effective
in timely alerting them to material information relating to the
Partnership required to be included in the Partnership's
periodic SEC Filings. There were no significant changes in
the Partnership's internal controls or in other factors that
could significantly affect these controls during the most recent
fiscal quarter.




QUALIFIED HOUSING PARTNERS LIMITED PARTNERSHIP

CONSOLIDATED BALANCE SHEETS
September 30, 2003 and December 31, 2002

                                             09/30/03      12/31/02
                                            (Unaudited)    (*)
ASSETS
Rental Properties
  Land                                       $1,326,402     $1,326,402
  Buildings                                  34,771,659     34,654,470
  Furniture & Fixtures                        2,176,347      2,147,070

                                             38,274,408     38,127,942

Accumulated Depreciation                    (13,249,865)   (12,590,134)

                                             25,024,543     25,537,808

Cash                                            246,684        211,526
Other Assets                                  2,167,356      2,206,104

TOTAL ASSETS                                $27,438,583    $27,955,438



LIABILITIES AND PARTNERS' CAPITAL

Liabilities Applicable to Rental
     Properties                             $24,094,863    $24,578,133
Other Liabilities                             1,546,796      1,260,483

Total Liabilities                            25,641,659     25,838,616

Minority Interests in Subsidiary
     Operating Partnerships                   1,699,022      1,701,471

Partners' Capital                                97,902        415,351

TOTAL LIABILITIES AND PARTNERS'
     CAPITAL                                $27,438,583    $27,955,438



See accompanying notes.
*Derived from audited consolidated balance sheet.











CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES
Three Months Ended September 30, 2003 and 2002
(Unaudited)

                                            07/01/03-     07/01/02-
                                            09/30/03      09/30/02

Revenue
     Rent                                $1,024,639       $968,223
     Other                                   14,966         23,581

                                          1,039,605        991,804

Rental Expense
     Interest                               136,216        155,100
     Depreciation                           215,415        220,210
     Repairs and Maintenance                290,273        282,430
     Utilities                               88,525         89,694
     Real Estate Taxes                       91,317         96,902
     Management Fees                        111,065        117,667
     Advertising                              2,339          2,669
     Other                                  163,080         97,129

                                          1,098,230      1,061,801

Loss from Rental Activities                 (58,625)       (69,997)

Other Income (Expenses)
     Interest Income                             18             56
     Management Fees                        (21,141)       (21,141)
     Administrative Costs                    (8,745)        (4,888)

Loss Before Deducting Minority
  Interests in Subsidiary Operating
  Partnerships                              (88,493)       (95,970)

Minority Interests in Losses of
  Subsidiary Operating Partnerships             600            707

     Net Loss                              ($87,893)      ($95,263)

Net Loss Allocated to General Partners        ($879)         ($953)

Net Loss Allocated to Limited Partners      (87,014)       (94,310)

     Net Loss                              ($87,893)      ($95,263)


Net Loss per Limited Partnership Unit       ($10.03)       ($10.87)


Average Number of Limited Partnership
  Units Outstanding                           8,673          8,673



See accompanying notes.
CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES
Nine Months Ended September 30, 2003 and 2002
(Unaudited)

                                            01/01/03-    01/01/02-
                                            09/30/03     09/30/02

Revenue
     Rent                                $3,061,303     $2,890,888
     Other                                   63,309         76,552

                                          3,124,612      2,967,440

Rental Expense
     Interest                               438,629        471,022
     Depreciation                           659,730        660,956
     Repairs and Maintenance                852,842        819,758
     Utilities                              273,177        263,875
     Real Estate Taxes                      272,210        276,727
     Management Fees                        346,769        341,126
     Advertising                              5,918          7,850
     Other                                  495,186        404,027

                                          3,344,461      3,245,341

Loss from Rental Activities                (219,849)      (277,901)

Other Income (Expenses)
     Interest Income                             61            245
     Management Fees                        (63,422)       (63,422)
     Administrative Costs                   (36,463)       (29,873)

Loss Before Deducting Minority
  Interests in Subsidiary Operating
  Partnerships                             (319,673)      (370,951)

Minority Interests in Losses of
  Subsidiary Operating Partnerships           2,224          2,807

     Net Loss                             ($317,449)     ($368,144)

Net Loss Allocated to General Partners      ($3,174)       ($3,681)

Net Loss Allocated to Limited Partners     (314,275)      (364,463)

     Net Loss                             ($317,449)     ($368,144)


Net Loss per Limited Partnership Unit       ($36.24)       ($42.02)


Average Number of Limited Partnership
  Units Outstanding                           8,673          8,673



See accompanying notes.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2003 and 2002
(Unaudited)

                                              01/01/03-      01/01/02-
                                              09/30/03       09/30/02

Cash Flows from Operating Activities
  Net Loss                                   ($317,449)     ($368,144)

Adjustments to Reconcile Net Loss
  To Net Cash Provided by Operating
  Activities:
     Depreciation                              659,730        660,956
     Minority Interest in Losses of
       Subsidiary Operating Partnerships        (2,224)        (2,807)
     Change in Other Assets and
       Liabilities                             325,062        (24,467)

Net Cash Provided by Operating Activities      665,119        265,538

Cash Flows from Investing Activities
     Purchases of Buildings and Equipment     (146,446)       (32,566)

Net Cash Used by Investing Activities         (146,466)       (32,566)

Cash Flows from Financing Activities
     Principal Payments on Borrowings         (483,270)      (342,127)
     Return of Equity to Minority Investors       (225)          (172)

Net Cash Used by Financing Activities         (483,495)      (342,299)

Net Increase (Decrease) in Cash                 35,158       (109,327)
     Cash Beginning                            211,526        327,416
     Cash Ending                              $246,684       $218,089



See accompanying notes.


















NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note A - Basis of Presentation

The unaudited consolidated financial statements included
herein have been prepared in accordance with the rules and
regulations of the Securities and Exchange Commission.  In
the opinion of the Partnership, all adjustments which are
considered necessary for a fair statement of the results for
the interim periods have been made; all such adjustments are
of a normal recurring nature.

These consolidated financial statements, which do not
Include all disclosures included in the annual financial
statements, should be read in conjunction with the
consolidated financial statements and notes thereto included
in the Partnership's latest annual report on Form 10-K.

The results of operations for the three and nine months
ended September 30, 2003 are not necessarily indicative
of the results to be achieved for the year.


Note B - Net Loss Per Limited Partnership Unit

Net loss per limited partnership Unit is based upon the net
loss allocated to the limited partners and is computed using
the number of Units outstanding of 8,673.


Note C - Liabilities Applicable to Rental Properties

Liabilities applicable to rental properties at September 30,
2003 consist of $24,094,863 of permanent mortgage loans to
Subsidiary Operating Partnerships.






















Note D - Related Party Transactions

The accompanying consolidated financial statements reflect
transactions between Qualified Housing Partners Limited
Partnership ("QHP") and its general partners or affiliates
and between the various Subsidiary Operating Partnerships
and their general partners or affiliates.

Frederick Investment Corporation, the Managing General
Partner of QHP, is a general or special limited partner in
each of the Operating Partnerships.  Each Operating
Partnership also has one or more other general partners (the
"Local General Partners").  Following is a summary of
related party transactions for the three months ended
September 30, 2003.

                                  QHP General    Local General
Items Paid or Payable              Partners       Partners

Management Fees                     $21,000          $102,000

Reimbursable Operating Expenses      $5,200                $0


Following is a summary of related party transactions for the
nine months ended September 30, 2003.

                                  QHP General    Local General
Items Paid or Payable              Partners       Partners

Management Fees                     $63,000          $320,000

Reimbursable Operating Expenses     $19,100                $0



MANAGEMENT'S DISCUSSION

Liquidity and Capital Resources

Net of the Subsidiary Operating Partnerships, QHP held
approximately $22,000 in cash and liquid investments at
September 30, 2003.  These assets will be held as working
capital.

At September 30, 2003, there were 645 holders of limited
partnership Units.










Results of Operations

The Partnership's loss from rental activities, including
depreciation, during the third quarter of 2003 is $58,625
as compared with a loss of $69,997 for the same period in
2002.  Third quarter revenue increased as a result of rent
increases received on several properties in the first
quarter.  This was partially offset by an increase in
other Rental Expenses primarily due to timing differences
and increases in property insurance.  All other variances
are a result of normal business fluctuation.


Tax Credits

One of the Partnership's primary investment objectives, the
generation of tax benefits through Low Income Housing Tax
Credits, has been substantially fulfilled.  The majority of
the apartment units stopped producing tax credits in 1999.
The ten-year tax credit period for the final two properties
expired in the first quarter of 2000.  A small number of
apartment units are generating tax credits over a
fifteen-year period rather than the ten years.  This will
produce an insignificant amount of tax credits over the
next four or five years.
































                           PART II

                      OTHER INFORMATION


Item 1.   Legal Proceedings

               None

Item 2.   Changes in Securities

               None

Item 3.   Defaults 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

               (a)  Exhibits

                    4     The Partnership Agreement is Exhibit A
                          to the Prospectus that is part of the
                          Registration Statement on Form S-11,
                          Number 33-19316 and effective May 20,
                          1988, the final form of which was filed
                          on May 20, 1988 pursuant to Rule 424(b),
                          and is incorporated herein by reference.

                    31.1  Section 302 Certification by Chief
                          Executive Officer

                    31.2  Section 302 Certification by Chief
                          Financial Officer

                    32.1  Section 906 Certification by Chief
                          Executive Officer

                    32.2  Section 906 Certification by Chief
                          Financial Officer


               (b)  Reports

                    No reports on Form 8-K were filed for the
                    quarter ended September 30, 2003.


SIGNATURES


Under the requirements of the Securities Exchange Act of 1934,
the Bank has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.



                            Frederick Investment Corporation
                            A General Partner


Date:   November 13, 2003    By:  /s/ George F. Marshall
                                  George F. Marshall, President
                                  (Chief Executive Officer)



Date:   November 13, 2003    By:  /s/ Jenny C. Petri
                                  Jenny C. Petri, Vice President
                                  (Chief Financial Officer)



Date:   November 13, 2003    By:  /s/ George F. Marshall
                                  George F. Marshall
                                  A General Partner





























EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

Section 302 Certification

I, George F. Marshall, certify that:

I have reviewed this quarterly report on Form 10-Q of Qualified
Housing Partners Limited Partnership, a North Carolina limited
partnership (the "registrant");

Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light
of the circumstances under which such statements were made,
not misleading with respect to the period covered by this
report;

Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present
in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for,
the periods presented in this report;

The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and have:

     designed such disclosure controls and procedures, or
     caused such disclosure controls and procedures to be
     designed under our supervision, to ensure that material
     information relating to the registrant, is made known
     to us by others within those entities, particularly
     during the period in which this report is being prepared;

     evaluated the effectiveness of the registrant's disclosure
     controls and procedures and presented in this report our
     conclusions about the effectiveness of the disclosure
     controls and procedures, as of the end of the period
     covered by this report based on such evaluation; and

     disclosed in this report any change in the registrant's
     internal control over financial reporting that occurred
     during the registrant's most recent fiscal quarter that
     has materially affected, or is reasonably likely to
     materially affect, the registrant's internal control over
     financial reporting;

The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over
financial reporting, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons
performing the equivalent functions):


     all significant deficiencies and material weaknesses in
     the design or operation of internal controls over financial
     reporting which are reasonably likely to adversely affect
     the registrant's ability to record, process, summarize and
     report financial information; and

     any fraud, whether or not material, that involves
     management or other employees who have a significant
     role in the registrant's internal controls over financial
     reporting.




Date:   November 13, 2003    By:  /s/ George F. Marshall
                                  George F. Marshall, General Partner
                                  Chief Executive Officer








































EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Section 302 Certification

I, Jenny C. Petri, certify that:

I have reviewed this quarterly report on Form 10-Q of Qualified
Housing Partners Limited Partnership, a North Carolina limited
partnership (the "registrant");

Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light
of the circumstances under which such statements were made,
not misleading with respect to the period covered by this
report;

Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present
in all material respects the financial condition, results of
operations and cash flows of the registrant as of, and for,
the periods presented in this report;

The registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for the registrant and have:

     designed such disclosure controls and procedures, or
     caused such disclosure controls and procedures to be
     designed under our supervision, to ensure that material
     information relating to the registrant, is made known
     to us by others within those entities, particularly
     during the period in which this report is being prepared;

     evaluated the effectiveness of the registrant's disclosure
     controls and procedures and presented in this report our
     conclusions about the effectiveness of the disclosure
     controls and procedures, as of the end of the period
     covered by this report based on such evaluation; and

     disclosed in this report any change in the registrant's
     internal control over financial reporting that occurred
     during the registrant's most recent fiscal quarter that
     has materially affected, or is reasonably likely to
     materially affect, the registrant's internal control over
     financial reporting;

The registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over
financial reporting, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons
performing the equivalent functions):


     all significant deficiencies and material weaknesses in
     the design or operation of internal controls over financial
     reporting which are reasonably likely to adversely affect
     the registrant's ability to record, process, summarize and
     report financial information; and

     any fraud, whether or not material, that involves
     management or other employees who have a significant
     role in the registrant's internal controls over financial
     reporting.



                                 FREDERICK INVESTMENT CORPORATION

Date:   November 13, 2003    By:  /s/ Jenny C. Petri
                                  Jenny C. Petri, Vice President
                                  (Chief Financial Officer)







































EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350), the undersigned, George F. Marshall,
Chief Executive Officer of Qualified Housing Partners
Limited Partnership, a North Carolina limited partnership,
does hereby certify, to his knowledge, that:

The Quarterly Report on Form 10-Q for the period ended
September 30, 2003 of the Partnership (the "Report")
fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, and
the information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.



Date:   November 13, 2003    By:  /s/ George F. Marshall
                                  George F. Marshall
                                  General Partner
                                  (Chief Executive Officer)






























EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(18 U.S.C.ss.1350), the undersigned, Jenny C. Petri,
Chief Financial Officer of Qualified Housing Partners
Limited Partnership, a North Carolina limited partnership,
does hereby certify, to her knowledge, that:

The Quarterly Report on Form 10-Q for the period ended
September 30, 2003 of the Partnership (the "Report")
fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, and
the information contained in the Report fairly presents,
in all material respects, the financial condition and
results of operations of the Partnership.

                            FREDERICK INVESTMENT CORPORATION

Date:   November 13, 2003    By:  /s/ Jenny C. Petri
                                  Jenny C. Petri, Vice President
                                  (Chief Financial Officer)