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 September 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)

                               September 30, 2000


<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  473
   Receivables and deposits                                                      59
   Other assets                                                                  33
   Investment properties:
       Land                                                  $ 1,522
       Buildings and related personal property                 9,416
                                                              10,938
       Less accumulated depreciation                          (3,641)         7,297
   Investment in joint venture                                                    7
                                                                            $ 7,869
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                           $   6
   Tenant security deposit liabilities                                           49
   Accrued property taxes                                                        27
   Other liabilities                                                             77

Partners' (Deficit) Capital
   General partner                                             $ (54)
   Limited partners (61,063 units
      issued and outstanding)                                  7,764          7,710
                                                                            $ 7,869
</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       Nine Months Ended
                                                 September 30,            September 30,
                                                2000        1999         2000         1999
Revenues                                                 (Restated)               (Restated)
<S>                                            <C>         <C>         <C>          <C>
  Rental income                                $  420       $ 428      $ 1,274      $ 1,258
  Other income                                     35          35          108          107
         Total revenues                           455         463        1,382        1,365

Expenses:
  Operating                                       175         184          506          485
  General and administrative                       29          49          101          135
  Depreciation                                     95          87          290          259
  Property taxes                                   41          11          118           79
         Total expenses                           340         331        1,015          958

Income before equity in (loss) income
  of joint venture and discontinued
  operation                                       115         132          367          407
Equity in (loss) income of joint venture           (1)          7           10           22

Income from continuing operations                 114         139          377          429
Impairment loss on discontinued operation          --        (600)          --         (600)
Income (loss) from discontinued operation          --           3          (11)          14

Net income (loss)                              $  114      $ (458)      $  366       $ (157)

Net income (loss) allocated to general
  partner (1%)                                  $   1        $ (5)        $  4         $ (2)
Net income (loss) allocated to limited
  partners (99%)                                  113        (453)         362         (155)

                                               $  114      $ (458)      $  366       $ (157)
Per limited partnership unit:
  Income from continuing operations           $  1.85      $ 2.26       $ 6.11      $  6.96
  Impairment loss on discontinued
   operation                                       --       (9.73)          --        (9.73)
  Income (loss) from discontinued
   operation                                       --        0.05        (0.18)        0.23

Net income (loss)                             $  1.85     $ (7.42)      $ 5.93      $ (2.54)

Distributions per limited
  partnership unit                             $   --     $ 11.84      $ 27.30      $ 16.83
</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 nine months
   ended September 30, 2000               --          4          362          366

Partners' (deficit) capital
   at September 30, 2000              61,063      $ (54)      $ 7,764      $ 7,710
</TABLE>


                   See Accompanying Notes to Financial Statements


<PAGE>

d)

                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)
<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                                   September 30,
                                                                  2000        1999
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income (loss)                                              $  366       $ (157)
  Adjustments to reconcile net income (loss) to net cash
     provided by operating activities:
      Equity in net income of joint venture                         (10)         (22)
      Depreciation                                                  290          307
      Impairment loss on discontinued operation                      --          600
      Amortization of lease commissions                              --            5
      Change in accounts:
         Receivables and deposits                                    95          (10)
         Other assets                                                 5          (18)
         Accounts payable                                           (72)          (9)
         Tenant security deposit liabilities                          6           --
         Accrued property taxes                                      27           27
         Other liabilities                                          (26)           4

              Net cash provided by operating activities             681          727

Cash flows from investing activities:
  Property improvements and replacements                           (103)        (114)
  Distributions from joint venture                                   12           29
  Proceeds from sale of joint venture property                      400           --

              Net cash provided by (used in) investing
                  activities                                        309          (85)

Cash flows used in financing activities:
  Distributions to partners                                      (1,684)        (308)

Net (decrease) increase in cash and cash equivalents               (694)         334

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

Cash and cash equivalents at end of period                       $  473      $ 1,262

Supplemental disclosure of non-cash financing activity:
  Distribution payable                                            $  --        $ 730
</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 nine month periods ended  September 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 nine month periods ended September 30, 2000 and 1999:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 69      $ 67
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             37        28
 Due to affiliate (included in other liabilities)                   21        --

During the nine months  ended  September  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
$69,000  and  $67,000 for the nine  months  ended  September  30, 2000 and 1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $37,000 and $28,000 for the
nine months ended September 30, 2000 and 1999, respectively.

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 September 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.  At  September  30,  2000,  the limited
partners had not received their return.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 14,402 limited partnership
units in the Partnership  representing 23.59% 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,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the General Partner.  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.

There are no assets or  liabilities  remaining  on the balance  sheet of Corinth
Square at September  30, 2000.  The condensed  profit and loss  statement of the
Joint  Venture  for the nine  months  ended  September  30,  2000 and  1999,  is
summarized as follows (in thousands):

                                              2000        1999

               Revenue                        $ 12        $ 301
               Costs and expenses               (3)        (238)
               Income before gain on
                 sale of property                9           63
               Gain on sale of property         20           --

               Net income                     $ 29         $ 63

Note E - Distributions

During  the  nine  months  ended  September  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).  Subsequent to September 30, 2000, the Partnership  declared
and paid a distribution from operations of approximately $308,000 (approximately
$305,000 to the limited partners or $4.99 per limited  partnership unit). During
the nine months ended September 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).  Subsequent to
September 30, 1999, the  Partnership  paid a distribution of cash generated from
operations  of  approximately  $730,000  (approximately  $723,000 to the limited
partners or $11.84 per limited  partnership unit) which was approved and accrued
during the nine months ended September 30, 1999.

Note F - Impairment Loss and Sale of Discontinued Operation

During the three months ended  September 30, 1999,  the  Partnership  determined
that the Peachtree Corners Medical Building located in Atlanta,  Georgia, with a
carrying  value of  approximately  $1,451,000  was  impaired  and its  value was
written down by  approximately  $600,000.  The fair value was based upon current
economic conditions and projected future operational cash flows.

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 has been restated and the results of
the commercial  segment have been classified as "Income (loss) from discontinued
operation" and "Impairment loss from  discontinued  operation" for the three and
nine month periods ended September 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 nine month period ended  September  30, 2000.
Revenues of this property were approximately  $47,000 and $121,000 for the three
and nine months ended September 30, 1999, respectively. Income from discontinued
operations was approximately $3,000 and $14,000, respectively.

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 - Impairment Loss and Sale of
Discontinued   Operation"  for  further  information  regarding  the  commercial
property sale).

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 nine month periods  ended  September 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
      September 30, 2000         Residential      Commercial       Other      Totals
                                                (discontinued)
<S>                                 <C>               <C>           <C>        <C>
Rental income                       $  420            $ --          $  --      $ 420
Other income                            34              --              1         35
Depreciation                            95              --             --         95
General and administrative
  expense                               --              --             29         29
Equity in loss of joint
  venture                               --              --             (1)        (1)
Segment profit (loss)                  143              --            (29)       114


       Nine Months Ended
      September 30, 2000         Residential      Commercial       Other      Totals
                                                (discontinued)
Rental income                      $ 1,274           $  --          $  --    $ 1,274
Other income                           101              --              7        108
Depreciation                           290              --             --        290
General and administrative
  expense                               --              --            101        101
Loss from discontinued
  operation                             --             (11)            --        (11)
Equity in income of joint
  venture                               --              --             10         10
Segment profit (loss)                  461             (11)           (84)       366
Total assets                         7,781              --             88      7,869
Capital expenditures for
  investment properties                103              --             --        103


      Three Months Ended
      September 30, 1999         Residential      Commercial       Other      Totals
                                                (discontinued)
Rental income                       $  428            $ --          $  --       $ 428
Other income                            31              --              4          35
Depreciation                            87              --             --          87
General and administrative
  expense                               --              --             49          49
Income from discontinued
  operation                             --               3             --           3
Impairment loss on
  discontinued operation                --            (600)            --        (600)
Equity in income of joint
  venture                               --              --              7           7
Segment profit (loss)                  177            (597)           (38)       (458)


       Nine Months Ended
      September 30, 1999         Residential      Commercial       Other      Totals
                                                (discontinued)
Rental income                      $ 1,258           $  --          $  --     $ 1,258
Other income                            88              --             19         107
Depreciation                           259              --             --         259
General and administrative
  expense                               --              --            135         135
Income from discontinued
  operation                             --              14             --          14
Impairment loss on
  discontinued operation                --            (600)            --        (600)
Equity in income of joint
  Venture                               --              --             22          22
Segment profit (loss)                  523            (586)           (94)       (157)
Total assets                         8,297             998          1,206      10,501
Capital expenditures for
  investment properties                114              --             --         114
</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 nine months ended September 30, 2000 and 1999:

                                                  Average Occupancy
      Property                                     2000       1999

      Bronson Place Apartments                      92%        94%
         Mountlake Terrace, Washington
      Meadow Wood Apartments                        97%        93%
         Medford, Oregon
      Defoors Crossing Apartments                   96%        95%
         Atlanta, Georgia

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

Results of Operations

The  Partnership  realized  net income of  approximately  $366,000  for the nine
months  ended  September  30,  2000,  compared  to a net  loss of  approximately
$157,000 for the nine months ended  September 30, 1999.  The  Partnership's  net
income for the three months ended September 30, 2000, was approximately $114,000
compared to a net loss of  approximately  $458,000  for the three  months  ended
September  30,  1999.  The  increase  in net income for the three and nine month
periods ended  September 30, 2000, is primarily due to an impairment loss on the
discontinued  operation  of Peachtree  Corners  Medical  Building,  as discussed
below.

Excluding  the  discontinued  operation  and the equity in (loss)  income of the
joint  venture  which was sold  December  30,  1999,  as  discussed  below,  the
Partnership  had income of  approximately  $367,000  for the nine  months  ended
September 30, 2000,  compared to income of  approximately  $407,000 for the nine
months ended September 30, 1999.  Excluding the  discontinued  operation and the
equity in (loss)  income of the joint  venture,  the  Partnership  had income of
approximately  $115,000 for the three months ended September 30, 2000,  compared
to income of  approximately  $132,000 for the three months ended  September  30,
1999.  Income  decreased for the nine months ended  September 30, 2000 due to an
increase in total expenses  partially  offset by an increase in total  revenues.
Income  decreased  for the three months  ended  September  30,  2000,  due to an
increase in total expenses and a decrease in total revenues.

Total  expenses  increased  for the nine month period ended  September  30, 2000
primarily due to increased  depreciation,  property tax, and operating  expenses
which were partially offset by decreased  general and  administrative  expenses.
Total  expenses  increased  for the three month period ended  September 30, 2000
primarily  due to increased  depreciation  and  property  tax expense  partially
offset  by  decreased   operating  and  general  and  administrative   expenses.
Depreciation  expense  increased  for the three  and nine  month  periods  ended
September 30, 2000 due to capital improvements  completed during the past twelve
months.  Property  tax expense  increased  for the three and nine month  periods
ended  September 30, 2000 due to a tax refund received by Meadow Wood Apartments
in 1999.  Operating  expenses  increased for the nine months ended September 30,
2000 due to an increase in advertising  at Bronson Place  Apartments and Defoors
Crossing  Apartments  and  increased   maintenance  expenses  at  Bronson  Place
Apartments  and Meadow Wood  Apartments.  Operating  expenses  decreased for the
three month  period  ended  September  30, 2000 due to a decrease in repairs and
maintenance  expenses at Bronson Place  Apartments for that period.  General and
administrative  expense  decreased  for the three and nine month  periods  ended
September 30, 2000 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 nine month  period ended  September  30,
2000 was due to increased rental income.  The decrease in total revenues for the
three month period ended September 30, 2000 was due to decreased  rental income.
Other income for both periods remained constant. Rental income increased for the
nine month period ended  September 30, 2000  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.  Rental income decreased for the three
month period ended September 30, 2000 primarily due to increased concessions and
bad debt expense and decreased occupancy at Bronson Place Apartments.

The  Partnership  had a 35% investment in Corinth  Square Joint Venture  ("Joint
Venture").  For the nine  months  ended  September  30,  2000,  the  Partnership
realized  equity in the income of the Joint  Venture  property of  approximately
$10,000,  and for the nine months  ended  September  30, 1999,  the  Partnership
realized  equity in the income of the Joint  Venture  property of  approximately
$22,000.  For the three month period ended  September 30, 2000, the  Partnership
realized  equity  in the loss of the Joint  Venture  property  of  approximately
$1,000, and for the three month period ended September 30, 1999, the Partnership
realized  equity in the income of the Joint  Venture  property of  approximately
$7,000.  On  December  30,  1999,  the Joint  Venture  sold its only  investment
property, Corinth Square, to an unaffiliated third party.

During the three months ended  September 30, 1999,  the  Partnership  determined
that the Peachtree Corners Medical Building located in Atlanta,  Georgia, with a
carrying  value of  approximately  $1,451,000,  was  impaired  and its value was
written down by  approximately  $600,000.  The fair value was based upon current
economic conditions and projected future operational cash flows.

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 results of the  commercial  segment have been  classified as
"Income  (loss)  from   discontinued   operation"  and  "Impairment   loss  from
discontinued operation" for the three and nine month periods ended September 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
nine month  period ended  September  30, 2000.  Revenues of this  property  were
approximately $47,000 and $121,000 for the three and nine months ended September
30, 1999,  respectively.  Income from discontinued  operations was approximately
$3,000 and $14,000, respectively.

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  September  30,  2000,  the  Partnership  had cash and  cash  equivalents  of
approximately  $473,000  compared to  approximately  $1,262,000 at September 30,
1999. Cash and cash  equivalents  decreased by  approximately  $694,000 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
$681,000 of cash provided by operating activities and approximately  $309,000 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  nine  months  ended  September  30,  2000,  the  Partnership  spent
approximately  $26,000 on capital  improvements  at  Bronson  Place  Apartments,
consisting primarily of structural  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  nine  months  ended  September  30,  2000,  the  Partnership  spent
approximately  $64,000  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  $112,000,  consisting
primarily  of air  conditioning  unit  replacement,  parking  lot  improvements,
structural  improvements,   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  nine  months  ended  September  30,  2000,  the  Partnership  spent
approximately  $13,000 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  nine  months  ended  September  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).  Subsequent to September 30, 2000, the Partnership  declared
and paid a distribution from operations of approximately $308,000 (approximately
$305,000 to the limited partners or $4.99 per limited  partnership unit). During
the nine months ended September 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).  Subsequent to
September 30, 1999, the  Partnership  paid a distribution of cash generated from
operations  of  approximately  $730,000  (approximately  $723,000 to the limited
partners or $11.84 per limited  partnership unit) which was approved and accrued
during the nine months ended September 30, 1999. 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  September
                  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: