FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                        Quarterly or Transitional Report

                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

                    For the quarterly period ended June 30, 2000


[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934


                For the transition period from _________to _________

                         Commission file number 0-17646

                         UNITED INVESTORS INCOME PROPERTIES
         (Exact name of small business issuer as specified in its charter)



         Missouri                                           43-1483942
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                          55 Beattie Place, PO Box 1089

                        Greenville, South Carolina 29602

                      (Address of principal executive offices)

                                 (864) 239-1000

                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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___

<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                       UNITED INVESTORS INCOME PROPERTIES

                                  BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

                                  June 30, 2000
<TABLE>
<CAPTION>

Assets

<S>                                                                          <C>
   Cash and cash equivalents                                                 $  295
   Receivables and deposits                                                      55
   Other assets                                                                  18
   Investment properties:
       Land                                                  $ 1,522
       Buildings and related personal property                 9,390
                                                              10,912
       Less accumulated depreciation                          (3,546)         7,366
   Investment in joint venture                                                    9
                                                                            $ 7,743

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                                           $   7
   Tenant security deposit liabilities                                           48
   Accrued property taxes                                                        24
   Other liabilities                                                             68

Partners' (Deficit) Capital

   General partner                                             $ (55)
   Limited partners (61,063 units
      issued and outstanding)                                  7,651          7,596
                                                                            $ 7,743
</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

b)

                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)
<TABLE>
<CAPTION>

                                         Three Months Ended        Six Months Ended
                                              June 30,                 June 30,
                                          2000         1999         2000        1999
Revenues                                            (Restated)              (Restated)
<S>                                      <C>           <C>          <C>         <C>
  Rental income                          $  431        $ 415        $ 854       $ 830
  Other income                               45           37           73          72
         Total revenues                     476          452          927         902

Expenses:
  Operating                                 167          165          331         301
  General and administrative                 41           48           72          86
  Depreciation                               98           88          195         172
  Property taxes                             40           37           77          68
         Total expenses                     346          338          675         627

Income before equity in income of
  joint venture and discontinued
  operation                                 130          114          252         275
Equity in income of joint venture            --            6           11          15

Income from continuing operations           130          120          263         290
(Loss) income from discontinued
  operation                                  --           --          (11)         11

Net income                               $  130        $ 120        $ 252       $ 301

Net income allocated to general
  partner (1%)                                1            1            3           3
Net income allocated to limited
  partners (99%)                            129          119          249         298

                                         $  130        $ 120        $ 252       $ 301
Per limited partnership unit:

  Income from continuing operations        2.11         1.95         4.26        4.70
  (Loss) income from discontinued
    operation                                --           --        (0.18)       0.18

Net income                               $ 2.11       $ 1.95       $ 4.08      $ 4.88

Distributions per limited
  partnership unit                       $ 7.70       $ 2.49      $ 27.30      $ 4.99
</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

c)

                       UNITED INVESTORS INCOME PROPERTIES

                STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (Unaudited)

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                     Limited
                                   Partnership   General      Limited
                                      Units      Partner     Partners       Total

<S>                                   <C>          <C>        <C>          <C>
Original capital contributions        61,063       $ --       $15,266      $15,266

Partners' (deficit) capital at
   December 31, 1999                  61,063      $ (41)      $ 9,069      $ 9,028

Distributions to partners                 --         (17)      (1,667)      (1,684)

Net income for the six months
   ended June 30, 2000                    --           3          249          252

Partners' (deficit) capital
   at June 30, 2000                   61,063      $ (55)      $ 7,651      $ 7,596

</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

d)

                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                   (in thousands)

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,

                                                                  2000        1999
Cash flows from operating activities:

<S>                                                              <C>           <C>
  Net income                                                     $  252        $ 301
  Adjustments to reconcile net income to net cash
     provided by operating activities:
     Equity in net income of joint venture                          (11)         (15)
     Depreciation                                                   195          204
     Amortization of lease commissions                               --            3
     Change in accounts:
         Receivables and deposits                                    99          (28)
         Other assets                                                20           14
         Accounts payable                                           (71)         (21)
         Tenant security deposit liabilities                          5            2
         Accrued property taxes                                      24           38
         Other liabilities                                          (35)          (5)

              Net cash provided by operating activities             478          493

Cash flows from investing activities:

  Property improvements and replacements                            (77)         (77)
  Distributions from joint venture                                   11           19
  Proceeds from sale of joint venture property                      400           --

              Net cash provided by (used in) investing
                  activities                                        334          (58)

Cash flows used in financing activities:

  Distributions to partners                                      (1,684)        (308)

Net (decrease) increase in cash and cash equivalents               (872)         127

Cash and cash equivalents at beginning of period                  1,167          928

Cash and cash equivalents at end of period                       $  295      $ 1,055

</TABLE>

                   See Accompanying Notes to Financial Statements

<PAGE>

e)

                       UNITED INVESTORS INCOME PROPERTIES

                          NOTES TO FINANCIAL STATEMENTS

                                   (Unaudited)

Note A - Basis of Presentation

The  accompanying  unaudited  financial  statements of United  Investors  Income
Properties (the  "Partnership" or "Registrant") have been prepared in accordance
with generally accepted accounting  principles for interim financial information
and with the  instructions  to Form  10-QSB and Item 310(b) of  Regulation  S-B.
Accordingly,  they do not include all of the information and footnotes  required
by generally accepted accounting  principles for complete financial  statements.
In the opinion of United Investors Real Estate, Inc. (the "General Partner"),  a
Delaware corporation,  all adjustments (consisting of normal recurring accruals)
considered  necessary  for a fair  presentation  have been  included.  Operating
results  for the  three and six  month  periods  ended  June 30,  2000,  are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending  December  31,  2000.  For further  information,  refer to the  financial
statements and footnotes thereto included in the Partnership's  Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1999.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the General Partner.  The General Partner does not believe that this transaction
has had or will have a material  effect on the  affairs  and  operations  of the
Partnership.

Note C - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for payments to affiliates for services and
for  reimbursement of certain  expenses  incurred by affiliates on behalf of the
Partnership.  The  following  payments  were made to  affiliates  of the General
Partner during the six month periods ended June 30, 2000 and 1999:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 46      $ 45
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             26        19

During the six months  ended June 30, 2000 and 1999,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's  residential  properties as  compensation  for providing  property
management  services.  The  Partnership  paid to such  affiliates  approximately
$46,000  and  $45,000  for  the  six  months  ended  June  30,  2000  and  1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $26,000 and $19,000 for the
six months ended June 30, 2000 and 1999, respectively.

<PAGE>

For acting as real estate broker in  connection  with the 1999 sale of Peachtree
Corners Medical Building, the General Partner earned a real estate commission of
approximately  $21,000.  The  commission  was  accrued  at June 30,  2000 and is
included in other  liabilities.  However,  this amount is not payable  until the
limited partners  receive an amount equal to their adjusted  capital  investment
and a  cumulative  distribution  equal  to an 8%  annual  return  from  the last
additional  closing date or, if greater,  a 6% cumulative annual return from his
date of admission to the Partnership.

AIMCO and its affiliates  currently own 11,785 limited  partnership units in the
Partnership representing 19.3% of the outstanding units. A number of these units
were acquired  pursuant to tender offers made by AIMCO or its affiliates.  It is
possible that AIMCO or its affiliates will make one or more additional offers to
acquire additional limited partnership  interests in the Partnership for cash or
in  exchange  for  units  in the  operating  partnership  of  AIMCO.  Under  the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the Units it acquired in a manner  favorable
to the interest of the General  Partner  because of their  affiliation  with the
General Partner.

Note D - Investment in Corinth Square Joint Venture

The  Partnership  had a 35% investment in Corinth  Square Joint Venture  ("Joint
Venture") with United Investors Income Properties II, an affiliated  partnership
in which the General Partner is also the sole general  partner.  The Partnership
reflects its interest in the Joint Venture utilizing the equity method,  whereby
the original investment is increased by advances to the Joint Venture and by the
Partnership's  share of the earnings of the Joint  Venture.  The  investment  is
decreased by distributions from the Joint Venture and by the Partnership's share
of losses of the Joint Venture.

On December  30, 1999,  the Joint  Venture  sold its only  investment  property,
Corinth Square,  to an unaffiliated  third party. The net proceeds were received
by United Investors Income  Properties II, of which  approximately  $400,000 was
the Partnership's pro-rata share. This amount was received by the Partnership in
January 2000.

Condensed balance sheet information of the Joint Venture at June 30, 2000, is as
follows (in thousands):

              Assets

              Cash                                         $  6
              Other assets                                   --
                 Total                                     $  6

              Liabilities and Partners' Deficit
              Other liabilities                            $ --
              Partners' deficit                               6
                 Total                                     $  6

<PAGE>

The condensed  profit and loss statement of the Joint Venture for the six months
ended June 30, 2000 and 1999, is summarized as follows (in thousands):

                                               2000        1999

               Revenue                        $  12       $ 205
               Costs and expenses                --         162
               Income before gain on
                 sale of property                12          43
               Gain on sale of property          20          --

               Net income                     $  32        $ 43

Note E - Distributions

During the six months ended June 30, 2000, the Partnership paid distributions of
cash generated from the sale of Peachtree  Corners Medical  Building and Corinth
Square Joint Venture of approximately $1,003,000  (approximately $993,000 to the
limited  partners  or $16.26 per  limited  partnership  unit) and  approximately
$681,000  of cash  generated  from  operations  (approximately  $674,000  to the
limited partners or $11.04 per limited  partnership unit). During the six months
ended June 30, 1999, the Partnership  paid  distributions of cash generated from
operations  of  approximately  $308,000  (approximately  $305,000 to the limited
partners or $4.99 per limited partnership unit).

Note F - Discontinued Operation

Peachtree  Corners  Medical  Building  was the last  commercial  property in the
commercial  segment  of the  Partnership.  Due to the sale of this  property  in
December  1999,  the statement of operations for the three and six month periods
ended June 30, 1999 has been restated and the (loss) income of this property has
been classified as "(Loss) income from discontinued operation" for the three and
six month periods ended June 30, 2000 and 1999.  There were no revenues for this
property  and the  Partnership  realized a loss from  discontinued  operation of
approximately  $11,000 during the six month period ended June 30, 2000. Revenues
of this property were approximately  $74,000 and the Partnership realized income
from  discontinued  operation of approximately  $11,000 for the six month period
ended June 30, 1999.  Revenues of this property were  approximately  $29,000 and
the Partnership did not recognize any income from discontinued operations during
the three month period ended June 30, 1999.

Note G - Segment Reporting

Description  of the types of products  and  services  from which the  reportable
segment  derives its revenues:  The  Partnership  had two  reportable  segments:
residential  properties and commercial property.  The Partnership's  residential
segment  consists of three  apartment  complexes  one each  located in Mountlake
Terrace,  Washington;  Atlanta,  Georgia;  and Medford,  Oregon. The Partnership
rents apartment  units to tenants for terms that are typically  twelve months or
less. The commercial property segment consisted of a medical building located in
Atlanta,  Georgia.  On December 30, 1999,  the  commercial  property held by the
Partnership was sold to an unrelated party. Therefore, the commercial segment is
reflected as discontinued  operations (see "Note F - Discontinued Operation" for
further information regarding the commercial property sale).

<PAGE>

Measurement  of segment profit or loss: The  Partnership  evaluates  performance
based on segment profit (loss) before  depreciation.  The accounting policies of
the reportable segments are the same as those of the Partnership as described in
the  Partnership's  Annual Report on Form 10-KSB for the year ended December 31,
1999.

Factors  management used to identify the enterprise's  reportable  segment:  The
Partnership's reportable segments are investment properties that offer different
products and  services.  The  reportable  segments  are each managed  separately
because they provide  distinct  services  with  different  types of products and
customers.

Segment  information for the three and six month periods ended June 30, 2000 and
1999, is shown in the tables below (in  thousands).  The "Other" column includes
Partnership administration related items and income and expense not allocated to
the reportable segments.
<TABLE>
<CAPTION>

      Three Months Ended
         June 30, 2000           Residential      Commercial       Other      Totals
                                                (discontinued)
<S>                                 <C>               <C>           <C>        <C>
Rental income                       $  431            $ --          $  --      $ 431
Other income                            44              --              1         45
Depreciation                            98              --             --         98
General and administrative
  expense                               --              --             41         41
Segment profit (loss)                  170              --            (40)       130
</TABLE>

<TABLE>
<CAPTION>

       Six Months Ended
         June 30, 2000           Residential      Commercial       Other      Totals
                                                (discontinued)
<S>                                 <C>               <C>           <C>        <C>
Rental income                       $  854            $ --          $  --      $ 854
Other income                            67              --              6         73
Depreciation                           195              --             --        195
General and administrative
  expense                               --              --             72         72
Loss from discontinued
  operation                             --             (11)            --        (11)
Equity in income of joint
  venture                               --              --             11         11
Segment profit (loss)                  318             (11)           (55)       252
Total assets                         7,640              --            103      7,743
Capital expenditures for
  investment properties                 77              --             --         77
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

      Three Months Ended
         June 30, 1999           Residential      Commercial       Other      Totals
                                                (discontinued)
<S>                                 <C>               <C>           <C>         <C>
Rental income                       $  415            $ --          $  --       $ 415
Other income                            30              --              7          37
Depreciation                            88              --             --          88
General and administrative
  expense                               --              --             48          48
Equity in income of joint
  venture                               --              --              6           6
Segment profit (loss)                  155              --            (35)        120
</TABLE>

<TABLE>
<CAPTION>

       Six Months Ended
         June 30, 1999           Residential      Commercial       Other      Totals
                                                (discontinued)
<S>                                 <C>               <C>           <C>         <C>
Rental income                       $  830            $ --          $  --       $ 830
Other income                            57              --             15          72
Depreciation                           172              --             --         172
General and administrative
  expense                               --              --             86          86
Income from discontinued
  operation                             --              11             --          11
Equity in income of joint
  venture                               --              --             15          15
Segment profit (loss)                  346              11            (56)        301
Total assets                         8,142           1,591          1,218      10,951
Capital expenditures for
  investment properties                 77              --             --          77
</TABLE>

<PAGE>

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange  Commission made by the  Partnership  from time to time.
The  discussion  of  the  Partnership's  business  and  results  of  operations,
including  forward-looking  statements pertaining to such matters, does not take
into  account  the  effects of any  changes to the  Partnership's  business  and
results of operations.  Accordingly, actual results could differ materially from
those  projected in the  forward-looking  statements  as a result of a number of
factors, including those identified herein.

The Partnership's  investment  properties consist of three apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the six months ended June 30, 2000 and 1999:

                                                  Average Occupancy

      Property                                     2000       1999

      Bronson Place Apartments                      93%        95%
         Mountlake Terrace, Washington
      Meadow Wood Apartments                        97%        93%
         Medford, Oregon
      Defoors Crossing Apartments                   96%        94%
         Atlanta, Georgia

The General Partner attributes the increased occupancy at Meadow Wood Apartments
to increased  advertising  and exterior  improvements  completed to increase the
curb appeal of the property.

Results of Operations

The Partnership realized net income of approximately $252,000 for the six months
ended June 30, 2000,  compared to net income of  approximately  $301,000 for the
six  months  ended June 30,  1999.  The  Partnership's  net income for the three
months ended June 30, 2000, was approximately $130,000 compared to net income of
approximately $120,000 for the three months ended June 30, 1999. The decrease in
net income  for the six  months  ended June 30,  2000,  is  primarily  due to an
increase in total expenses at the Partnership's residential properties and, to a
lesser extent, a decrease in income from the discontinued operation of Peachtree
Corners Medical Building,  as discussed below,  which was partially offset by an
increase in total  revenues.  The  increase  in net income for the three  months
ended  June 30,  2000 is due to an  increase  in total  revenues,  offset  by an
increase in total expenses.

Excluding  the  discontinued  operation  and the  equity  in income of the joint
venture, the Partnership had income of approximately $252,000 for the six months
ended June 30, 2000,  compared to income of  approximately  $275,000 for the six
months ended June 30, 1999. Excluding the discontinued  operation and the equity
in income of the joint  venture,  the  Partnership  had income of  approximately
$130,000  for the  three  months  ended  June 30,  2000,  compared  to income of
approximately  $114,000  for the  three  months  ended  June  30,  1999.  Income
decreased  for the six months  ended June 30,  2000 due to an  increase in total
expenses offset by an increase in total revenues. Income increased for the three
months ended June 30, 2000,  due to an increase in total  revenues  offset by an
increase in total expenses.

Total expenses increased for the three and six month periods ended June 30, 2000
primarily due to increased operating expenses and depreciation expense which was
partially offset by decreased  general and  administrative  expenses.  Operating
expenses increased due to an increase in advertising expense,  manager salaries,
contract  services,  and sewer expenses  primarily at Bronson Place  Apartments.
Depreciation expense increased due to capital improvements  completed during the
past twelve months that are now being  depreciated.  General and  administrative
expense  decreased  primarily due to a decrease in professional  fees related to
the  oversight  of the  Partnership.  Included  in  general  and  administrative
expenses are reimbursements to the General Partner allowed under the Partnership
Agreement  associated with its management of the  Partnership.  Costs associated
with the  quarterly and annual  communications  with  investors  and  regulatory
agencies and the annual audit  required by the  Partnership  Agreement  are also
included.

The increase in total revenues for the six month periods ended June 30, 2000 and
1999, was due to increased rental income. The increase in total revenues for the
three month  periods  ended June 30, 2000 and 1999 was due to  increased  rental
income and increased other income. Rental income increased for the three and six
month  periods  primarily  due to increased  average  rental rates at all of the
Partnership's  properties  and  improved  occupancy  at Meadow  Wood and Defoors
Crossing  Apartments which more than offset the decrease in occupancy at Bronson
Place  Apartments.  The  increase in other  income for the three month period is
primarily due to increased  utility  services income at Bronson Place and Meadow
Wood Apartments.

The  Partnership  has a 35% investment in Corinth  Square Joint Venture  ("Joint
Venture").  For the six months ended June 30,  2000,  the  Partnership  realized
equity in the income of the Joint Venture property of approximately $11,000, and
for the six months ended June 30, 1999, the  Partnership  realized equity in the
income of the Joint Venture  property of  approximately  $15,000.  For the three
month period ended June 30, 2000, the  Partnership  did not recognize any equity
in the income of the Joint  Venture  property,  and for the three  month  period
ended June 30, 1999, the Partnership  realized equity in the income of the Joint
Venture  property of  approximately  $6,000.  On December  30,  1999,  the Joint
Venture sold its only investment  property,  Corinth Square,  to an unaffiliated
third party.

Peachtree  Corners  Medical  Building  was the last  commercial  property in the
commercial  segment  of the  Partnership.  Due to the sale of this  property  in
December 1999, the (loss) income of this property has been classified as "(Loss)
income from  discontinued  operation"  for the three and six month periods ended
June 30,  2000 and  1999.  There  were no  revenues  for this  property  and the
Partnership realized a loss from discontinued operation of approximately $11,000
during the six month period ended June 30, 2000.  Revenues of this property were
approximately  $74,000 and the  Partnership  realized  income from  discontinued
operation of approximately $11,000 for the six month period ended June 30, 1999.
Revenues of this property were approximately $29,000 and the Partnership did not
recognize any income from  discontinued  operation during the three month period
ended June 30, 1999.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of its  investment  properties to assess
the feasibility of increasing rents,  maintaining or increasing occupancy levels
and protecting the Partnership from increases in expense.  As part of this plan,
the  General  Partner  attempts to protect  the  Partnership  from the burden of
inflation-related  increases in expenses by increasing  rents and  maintaining a
high overall  occupancy  level.  Due to changing  market  conditions,  which can
result  in the  use of  rental  concessions  and  rental  reductions  to  offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.

Liquidity and Capital Resources

At June 30, 2000, the Partnership had cash and cash equivalents of approximately
$295,000  compared to  approximately  $1,055,000 at June 30, 1999. Cash and cash
equivalents  decreased by  approximately  $872,000 from the  Partnership's  year
ended  December  31,  1999,  due to  approximately  $1,684,000  of cash  used in
financing  activities,  which was partially offset by approximately  $478,000 of
cash  provided  by  operating  activities  and  approximately  $334,000  of cash
provided by investing activities. Cash used in financing activities consisted of
distributions  paid to the  partners.  Cash  provided  by  investing  activities
consisted  primarily  of  proceeds  from the sale of the  Corinth  Square  Joint
Venture property and, to a lesser extent,  distributions received from the Joint
Venture,  which were partially offset by property improvements and replacements.
The Partnership invests its working capital reserves in money market accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the various  properties  to  adequately  maintain  the
physical  assets and other operating needs of the Partnership and to comply with
Federal, state and local legal and regulatory requirements. Capital improvements
planned for each of the Partnership's properties are detailed below.

Bronson Place

During the six months ended June 30, 2000, the Partnership  spent  approximately
$16,000  on  capital  improvements  at  Bronson  Place  Apartments,   consisting
primarily of building improvements,  appliances,  carpet and vinyl replacements,
and clubhouse  renovations.  These  improvements were funded from cash flow from
operations.  The Partnership has evaluated the capital  improvement needs of the
property  for the year  2000.  The amount  budgeted  is  approximately  $38,000,
consisting  primarily of carpet and vinyl  replacements  and plumbing  upgrades.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Meadow Wood

During the six months ended June 30, 2000, the Partnership  spent  approximately
$51,000 on capital improvements at Meadow Wood Apartments,  consisting primarily
of  appliances,  carpet and vinyl  replacements,  and parking lot  improvements.
These  improvements were funded from cash flow from operations.  The Partnership
has evaluated the capital  improvement  needs of the property for the year 2000.
The amount  budgeted  is  approximately  $63,000,  consisting  primarily  of air
conditioning unit replacement,  appliances,  and carpet and vinyl  replacements.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Defoors Crossing

During the six months ended June 30, 2000, the Partnership  spent  approximately
$10,000  on capital  improvements  at Defoors  Crossing  Apartments,  consisting
primarily  of  carpet  and  vinyl   replacements,   appliances,   swimming  pool
improvements,  and major  landscaping.  These improvements were funded from cash
flow from  operations.  The  Partnership  has evaluated the capital  improvement
needs of the property for the year 2000.  The amount  budgeted is  approximately
$31,000,  consisting  primarily of appliances and carpet and vinyl replacements.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

The additional  capital  expenditures will be incurred only if cash is available
from operations or from Partnership  reserves.  To the extent that such budgeted
capital improvements are completed,  the Partnership's  distributable cash flow,
if any, may be adversely affected at least in the short term.

During the six months ended June 30, 2000, the Partnership paid distributions of
cash generated from the sale of Peachtree  Corners Medical  Building and Corinth
Square Joint Venture of approximately $1,003,000  (approximately $993,000 to the
limited  partners  or $16.26 per  limited  partnership  unit) and  approximately
$681,000  of cash  generated  from  operations  (approximately  $674,000  to the
limited partners or $11.04 per limited  partnership unit). During the six months
ended June 30, 1999, the Partnership  paid  distributions of cash generated from
operations  of  approximately  $308,000  (approximately  $305,000 to the limited
partners or $4.99 per limited  partnership unit). Future cash distributions will
depend on the levels of net cash generated from operations,  the availability of
cash  reserves,  and  the  timing  of  financings  and/or  property  sales.  The
Partnership's distribution policy is reviewed on a quarterly basis. There can be
no assurance,  however, that the Partnership will generate sufficient funds from
operations  after  required  capital   improvements  to  permit  any  additional
distributions  to its  partners  during  the  remainder  of 2000  or  subsequent
periods.

<PAGE>

                           PART II - OTHER INFORMATION

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a) Exhibits:

               Exhibit 27, Financial Data Schedule, is filed as an exhibit to
               this report.

            b) Reports on Form 8-K filed during the quarter ended June 30, 2000:

               None.

<PAGE>

                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                    UNITED INVESTORS INCOME PROPERTIES

                                    By:   United Investors Real Estate, Inc.
                                          Its General Partner

                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller

                                    Date: