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, 1998


[ ]  TRANSITION REPORT PURSUANT TO 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                                (IRS Employer
 incorporation or organization)                              Identification No.)

                  One Insignia Financial Plaza, P.O. 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


                         PART I - FINANCIAL INFORMATION


ITEM 1.   FINANCIAL STATEMENTS

a)
                       UNITED INVESTORS INCOME PROPERTIES

                                 BALANCE SHEET
                                  (Unaudited)

                                 June 30, 1998
                        (in thousands, except unit data)


Assets
  Cash and cash equivalents                            $   739
  Receivables and deposits                                 214
  Other assets                                              62
  Investment properties:
     Land                                    $ 1,862
     Buildings and related personal property  10,578
                                              12,440
     Less accumulated depreciation            (3,196)    9,244

  Investment in joint venture                              627

                                                       $10,886

Liabilities and Partners' Capital (Deficit)

Liabilities
  Accounts payable                                     $    13
  Tenant security deposit liabilities                       54
  Accrued property taxes                                    27
  Other liabilities                                         38

Partners' Capital (Deficit)
  General partner's                          $   (25)
  Limited partners' (61,063 units             10,779    10,754
     issued and outstanding)
                                                       $10,886

                 See Accompanying Notes to Financial Statements


b)
                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        (in thousands, except unit data)


                           Three Months Ended   Six Months Ended
                                June 30,            June 30,
                            1998      1997      1998      1997
Revenues
  Rental income            $ 455     $ 432     $ 876     $ 840
  Other income                32        29        60        51
       Total revenues        487       461       936       891

Expenses:
  Operating                  264       172       422       346
  General and administrati    23        22        45        41
  Depreciation                99        94       198       188
  Property taxes              37        42        74        83
       Total expenses        423       330       739       658

Equity in income of
  joint venture                6         9         8        13

Net income                 $  70     $ 140     $ 205     $ 246

Net income allocated to
   general partner (1%)    $   1     $   1     $   2     $   2

Net income allocated to
   limited partners (99%)     69       139       203       244

                           $  70     $ 140     $ 205     $ 246

Net income per
   partnership unit        $1.13     $2.28     $3.32     $4.00

Distributions per limited
   partnership unit        $2.49     $2.49     $4.99     $4.99

                  See Accompanying Notes to Financial Statements


c)
                       UNITED INVESTORS INCOME PROPERTIES

              STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                  (Unaudited)
                        (in thousands, except unit data)


                                   Limited
                                 Partnership  General   Limited
                                    Units    Partner's Partners'   Total

Original capital contributions    61,063     $    --   $15,266    $15,266

Partners' (deficit) capital at
  December 31, 1997               61,063     $   (24)  $10,881    $10,857

Partners' distributions               --          (3)     (305)      (308)

Net income for the six months
  ended June 30, 1998                 --           2       203        205

Partners' (deficit) capital at
  June 30, 1998                   61,063     $   (25)  $10,779    $10,754

                 See Accompanying Notes to Financial Statements


d)
                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)


                                                  Six Months Ended
                                                       June 30,
                                                   1998      1997
Cash flows from operating activities:
   Net income                                     $ 205     $ 246
   Adjustments to reconcile net income to
     net cash provided by operating activities:
   Equity in net income of joint venture             (8)      (13)
   Depreciation                                     198       188
   Amortization of lease commissions                  3         3
   Change in accounts:
       Receivables and deposits                     (58)      (52)
       Other assets                                  30        15
       Accounts payable                               1        (9)
       Tenant security deposit liabilities            3         7
       Accrued property taxes                        27        29
       Other liabilities                             (8)        3

   Net cash provided by operating activities        393       417

Cash flows from investing activities:
   Property improvements and replacements           (74)      (65)
   Distributions from joint venture                  --        58

   Net cash used in investing activities            (74)       (7)

Cash flows from financing activities:
   Partners' distributions                         (308)     (308)

   Net cash used in financing activities           (308)     (308)

Net increase in cash and cash equivalents            11       102

Cash and cash equivalents at beginning of period    728       633

Cash and cash equivalents at end of period        $ 739     $ 735

                 See Accompanying Notes to Financial Statements

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") 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, 1998, are not
necessarily indicative of the results that may be expected for the fiscal year
ending December 31, 1998.  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, 1997.

Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.

NOTE B - INVESTMENT IN JOINT VENTURE

The Partnership owns a 35% interest in Corinth Square ("Corinth"), a joint
venture with United Investors Income Properties II, an affiliated partnership in
which the General Partner is also the sole general partner. The joint venture
owns a 24,000 square foot medical office building located in Prairie Village,
Kansas.  The Partnership reflects its interest in its joint venture property
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 (see "Note
D").

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.
Prior to February 25, 1998, the General Partner was a wholly-owned subsidiary of
MAE GP Corporation ("MAE GP"), an affiliate of Insignia Financial Group
("Insignia"). Effective February 25, 1998, MAE GP was merged into Insignia
Properties Trust ("IPT"), which is an affiliate of Insignia.  Thus the General
Partner is now a wholly-owned subsidiary of IPT.  The partnership agreement
provides for payments to affiliates for property management services based on a
percentage of revenue 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 for the
six months ended June 30, 1998 and 1997 (in thousands):

                                                       1998      1997
Property management fees (included in operating
  expenses)                                            $ 44      $ 42
Reimbursement for services of affiliates (included in
   general and administrative expenses)                  18        16

For the period from January 1, 1997, to August 31, 1997, the Partnership insured
its properties under a master policy through an agency affiliated with the
General Partner with an insurer unaffiliated with the General Partner.  An
affiliate of the General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the master policy.  The agent assumed the financial
obligations to the affiliate of the General Partner which received payments on
these obligations from the agent. The amount of the Partnership's insurance
premiums that accrued to the benefit of the affiliate of the General Partner by
virtue of the agent's obligations was not significant.

On March 17, 1998, Insignia entered into an agreement to merge its national
residential property management operations, and its controlling interest in IPT,
with Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust.  The closing, which is anticipated to happen in
September or October of 1998, is subject to customary conditions, including
government approvals and the approval of Insignia's shareholders.  If the
closing occurs, AIMCO will then control the General Partner of the Partnership.

NOTE D - INVESTMENT IN CORINTH SQUARE JOINT VENTURE

The Partnership owns a 35% interest in Corinth, a joint venture with United
Investors Income Properties II, an affiliated partnership, in which the General
Partner is also the sole general partner.  Corinth is accounted for using the
equity method of accounting (see "Note B").

The condensed balance sheet of Corinth at June 30, 1998, is summarized as
follows (in thousands):


  Assets
  Commercial property, net           $1,736
  Other assets                          117
  Total                              $1,853

  Liabilities and Partners' Capital
  Liabilities                        $   62
  Partners' capital                   1,791
  Total                              $1,853

Condensed statements of operations of Corinth for the six months ended June 30,
1998 and 1997, are as follows (in thousands):


                            1998       1997
  Revenue                 $  188     $  166
  Costs and expenses         166        129
  Net income              $   22     $   37


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

The Partnership's investment properties consist of three apartment complexes and
a commercial office building.  The following table sets forth the average
occupancy of the properties for each of the six month periods ended June 30,
1998 and 1997:

                                        Average
                                       Occupancy
Property                           1998         1997

Bronson Place Apartments
 Mountlake Terrace, Washington     95%          95%

Meadow Wood Apartments
 Medford, Oregon                   88%          91%

Defoors Crossing Apartments
  Atlanta, Georgia                 92%          92%

Peachtree Corners Medical Building
  Atlanta, Georgia                 74%          74%

The General Partner attributes the decreased occupancy at Meadow Wood Apartments
to softening market conditions. Beginning in the fourth quarter of 1997, rents
were reduced on one bedroom units, which suffered the highest vacancy.  As a
result, physical occupancy had increased to 95% by the end of July.  Management
continues to monitor and adjust rental rates at all properties to maximize total
revenue.

The Partnership realized net income of $205,000 for the six month period ended
June 30, 1998, compared to net income of $246,000 for the six month period ended
June 30, 1997.  The Partnership's net income for the three months ended June 30,
1998 was approximately $70,000 compared to net income of approximately $140,000
for the three months ended June 30, 1997.  The decrease in net income is
primarily attributable to increased operating expense partially offset by
increased rental income.  The increase in operating expense was primarily due to
increased major repairs and maintenance expenses.  Included in operating expense
are approximately $76,000 and $5,000 of major repairs and maintenance for the
six months ending June 30, 1998 and 1997, respectively.  The major repairs and
maintenance items for 1998 are comprised primarily of deck repairs, landscaping,
and repairs at Peachtree Corners caused by storm damage during the second
quarter of 1998.  The General Partner expects the Partnership to be reimbursed
by the insurance company during the third quarter of 1998 for costs paid by the
Partnership during the three months ended June 30, 1998, which will reduce the
casualty's negative impact on income.  The 1997 major repair and maintenance
items are comprised primarily of swimming pool repairs.  The increase in
operating expense was partially offset by rental income, which increased due to
rental rate increases, primarily at Bronson Place, which were partially offset
by reduced occupancy at Meadow Wood.

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 expenses. 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.

At June 30, 1998, the Partnership had cash and cash equivalents of approximately
$739,000 compared to approximately $735,000 at June 30, 1997.  The net increase
in cash and cash equivalents for the six month period ended June 30, 1998 was
$11,000 compared to $102,000 for the six month period ended June 30, 1997.  Net
cash provided by operating activities decreased due to the increased operating
expenses partially offset by increased rental income for the six month period
ended June 30, 1998, as discussed above.  Net cash used in investing activities
increased primarily due to a lack of distributions from the joint venture during
1998.  Net cash used in financing activities remained constant.

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.  Such assets are
currently thought to be sufficient for any near-term needs of the Partnership.
Distributions to partners of $308,000 were made during the six month periods
ended June 30, 1998 and 1997. Future cash distributions will depend on the
levels of net cash generated from operations, property sales and the
availability of cash reserves.  The General Partner anticipates that the
Partnership will continue to make cash distributions as property operations
permit throughout 1998.

Year 2000

The Partnership is dependent upon the General Partner and Insignia for
management and administrative services.  Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue").  The project is estimated to be completed
not later than December 31, 1998, which is prior to any anticipated impact on
its operating systems.  The General Partner believes that with modifications to
existing software and conversions to new software, the Year 2000 Issue will not
pose significant operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements. Such forward-looking statements speak only as of the date of
this quarterly report. The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.


                          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:

             None filed during the quarter ended June 30, 1998.



                                   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/ Carroll D. Vinson
                                   Carroll D. Vinson
                                   President and Director


                               By: /s/ Robert D. Long, Jr.
                                   Robert D. Long, Jr.
                                   Vice President and Chief Accounting Officer


                               Date: August 13, 1998