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, 2001


[ ]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, 2001

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  244
   Receivables and deposits                                                      40
   Other assets                                                                  31
   Investment properties:
       Land                                                  $ 1,522
       Buildings and related personal property                 9,571
                                                              11,093
       Less accumulated depreciation                          (3,935)         7,158
                                                                            $ 7,473
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                          $   17
   Tenant security deposit liabilities                                           51
   Accrued property taxes                                                        34
   Other liabilities                                                             76

Partners' (Deficit) Capital
   General partner                                             $ (58)
   Limited partners (61,063 units
      issued and outstanding)                                  7,353          7,295
                                                                            $ 7,473

</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,
                                          2001         2000         2001        2000
Revenues
<S>                                       <C>          <C>          <C>         <C>
  Rental income                           $ 436        $ 431        $ 855       $ 854
  Other income                               35           45           62          73
         Total revenues                     471          476          917         927

Expenses:
  Operating                                 176          167          359         342
  General and administrative                 47           41           81          72
  Depreciation                               99           98          197         195
  Property taxes                             42           40           84          77
         Total expenses                     364          346          721         686

Income before equity in income of
  joint venture                             107          130          196         241
Equity in income of joint venture            --           --           --          11

Net income                               $  107        $ 130        $ 196       $ 252

Net income allocated to general
  partner (1%)                            $ 1          $ 1          $ 2         $ 3
Net income allocated to limited
  partners (99%)                            106          129          194         249

                                         $ 107        $ 130        $ 196       $ 252

Net income per limited partnership
  unit                                   $ 1.74       $ 2.11      $ 3.18      $ 4.08
Distributions per limited
  partnership unit                       $ 1.94       $ 7.70      $ 6.57      $ 27.30

                   See Accompanying Notes to Financial Statements
</TABLE>

<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, 2000                  61,063      $ (56)      $ 7,560      $ 7,504

Distributions to partners                 --          (4)        (401)        (405)

Net income for the six months
   ended June 30, 2001                    --           2          194          196

Partners' (deficit) capital
   at June 30, 2001                   61,063      $ (58)      $ 7,353      $ 7,295


                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

d)

                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                  Six Months Ended
                                                                        June 30,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income                                                     $ 196        $ 252
  Adjustments to reconcile net income to net cash
     provided by operating activities:
     Equity in net income of joint venture                           --          (11)
     Depreciation                                                   197          195
     Change in accounts:
         Receivables and deposits                                     7           99
         Other assets                                                10           20
         Accounts payable                                            (4)         (71)
         Tenant security deposit liabilities                         --            5
         Accrued property taxes                                      34           24
         Other liabilities                                          (16)         (35)
              Net cash provided by operating activities             424          478

Cash flows from investing activities:
  Property improvements and replacements                           (107)         (77)
  Distributions from joint venture                                   --           11
  Proceeds from sale of joint venture property                       --          400
              Net cash (used in) provided by investing
                  activities                                       (107)         334

Cash flows used in financing activities:
  Distributions to partners                                        (405)      (1,684)

Net decrease in cash and cash equivalents                           (88)        (872)

Cash and cash equivalents at beginning of period                    332        1,167

Cash and cash equivalents at end of period                       $ 244        $ 295

                   See Accompanying Notes to Financial Statements
</TABLE>

<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,  2001 are not
necessarily  indicative  of the results that may be expected for the fiscal year
ending  December  31,  2001.  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, 2000. The General  Partner is
an  affiliate  of Apartment  Investment  and  Management  Company  ("AIMCO"),  a
publicly traded real estate investment trust.

Segment Reporting

Statement of Financial  Accounting Standards ("SFAS") No. 131, "Disclosure about
Segments of an Enterprise and Related Information" established standards for the
way that public business enterprises report information about operating segments
in annual  financial  statements  and  requires  that those  enterprises  report
selected  information about operating segments in interim financial reports.  It
also established  standards for related disclosures about products and services,
geographic  areas,  and  major  customers.  As  defined  in SFAS  No.  131,  the
Partnership has only one reportable  segment.  The General Partner believes that
segment-based disclosures will not result in a more meaningful presentation than
the financial statements as currently presented.

Note B - 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, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 47      $ 46
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             37        26
 Due to affiliate (included in other liabilities)                   21        21

During the six months  ended June 30, 2001 and 2000,  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
$47,000  and  $46,000  for  the  six  months  ended  June  30,  2001  and  2000,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $37,000 and $26,000 for the
six months ended June 30, 2001 and 2000, 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. However, this commission is not payable until the limited
partners receive  distributions equal to their adjusted capital investment and a
cumulative  8%  annual  return  from the last  additional  closing  date or,  if
greater,  a 6%  cumulative  annual  return from their date of  admission  to the
Partnership.  At June 30, 2001,  the limited  partners  had not  received  their
priority return.  Therefore,  the commission is included in other liabilities at
June 30, 2001.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 15,066 limited partnership
units in the Partnership  representing 24.67% 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 C - Distributions

During the six months ended June 30, 2001, the Partnership paid distributions of
cash generated from operations of approximately $405,000 (approximately $401,000
to the limited partners or $6.57 per limited  partnership unit).  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).

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, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

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

The General Partner attributes the decreased occupancy at Meadow Wood Apartments
and Defoors  Crossing  Apartments  to increased  home  purchases  and  increased
employment  transfers  and layoffs in the Medford,  Oregon and Atlanta,  Georgia
areas during the six months ended June 30, 2001.

Results of Operations

The Partnership realized net income of approximately $196,000 for the six months
ended June 30, 2001 compared to net income of approximately $252,000 for the six
months ended June 30, 2000.  The  Partnership's  net income for the three months
ended  June 30,  2001 was  approximately  $107,000  compared  to net  income  of
approximately $130,000 for the three months ended June 30, 2000. The decrease in
net income for the six month  period ended June 30, 2001 is due to a decrease in
total revenues,  an increase in total expenses,  and a decrease in the equity in
the income of the joint venture due to the sale of Corinth  Square Joint Venture
on December  30,  1999.  The  decrease in net income for the three month  period
ended June 30,  2001 is due to a decrease in total  revenues  and an increase in
total expenses.

Total revenues decreased for the three and six month periods ended June 30, 2001
due to a decrease  in other  income  partially  offset by a slight  increase  in
rental income. Other income decreased due primarily to decreased interest income
resulting from lower average cash balances in interest bearing accounts.  Rental
income increased  primarily due to an increase in average rental rates at all of
the  Partnership's  investment  properties  which more than offset a decrease in
occupancy at Meadow Wood Apartments and Defoors Crossing Apartments.

Total expenses increased for the three and six month periods ended June 30, 2001
primarily   due  to  increased   property   tax,   operating   and  general  and
administrative  expenses.  Property tax expense  increased for the three and six
month  periods  ended June 30,  2001 due to an  increase  in  assessed  value at
Defoors Crossing Apartments.  Operating expenses increased for the three and six
month  periods  ended June 30, 2001 due to  increases  in  employee  salaries at
Bronson Place Apartments and Meadow Wood Apartments and increased appraisal fees
at all of the  properties.  These  increases  were  partially  offset by reduced
maintenance  costs at all the  properties  and  reduced  advertising  expense at
Defoors Crossing Apartments.  General and administrative  expenses increased for
the three and six month periods  ended June 30, 2001  primarily due to increases
in the cost of services  included in the management  reimbursements  paid to the
General  Partner as allowed under the  Partnership  Agreement.  Also included in
general  and  administrative  expenses  at both June 30, 2001 and 2000 are costs
associated  with the  quarterly  and annual  communications  with  investors and
regulatory agencies and the annual audit required by the Partnership Agreement.

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, 2001, the Partnership had cash and cash equivalents of approximately
$244,000  compared to  approximately  $295,000 at June 30,  2000.  Cash and cash
equivalents  decreased by  approximately  $88,000 from  December 31, 2000 due to
approximately  $107,000 of cash used in investing  activities and  approximately
$405,000 of cash used in financing  activities,  which was  partially  offset by
approximately  $424,000 of cash provided by operating  activities.  Cash used in
investing activities consisted of property  improvements and replacements.  Cash
used in financing  activities  consisted of distributions  paid to the partners.
The  Partnership  invests its  working  capital  reserves  in  interest  bearing
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, 2001, the Partnership  spent  approximately
$21,000  on  capital  improvements  at  Bronson  Place  Apartments,   consisting
primarily of appliances and carpet and vinyl  replacements.  These  improvements
were funded from cash flow from  operations.  The  Partnership has evaluated the
capital improvement needs of the property for the year 2001. The amount budgeted
is approximately $23,000,  consisting primarily of carpet and vinyl replacements
and appliances. 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, 2001, the Partnership  spent  approximately
$39,000  on  budgeted  and non  budgeted  capital  improvements  at Meadow  Wood
Apartments,   consisting  primarily  of  plumbing  upgrades,  carpet  and  vinyl
replacements,  and lighting  improvements.  These  improvements were funded from
cash flow from operations. The Partnership has evaluated the capital improvement
needs of the property for the year 2001.  The amount  budgeted is  approximately
$34,000,  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.

Defoors Crossing

During the six months ended June 30, 2001, the Partnership  spent  approximately
$47,000  on capital  improvements  at Defoors  Crossing  Apartments,  consisting
primarily  of  carpet  replacements,   sub-metering  improvements,   appliances,
structural  improvements,  plumbing  improvements,  and  wall  coverings.  These
improvements  were funded from cash flow from  operations.  The  Partnership has
evaluated the capital  improvement  needs of the property for the year 2001. The
amount  budgeted  is  approximately  $51,000,   consisting  primarily  of  water
sub-metering.  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.  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, 2001, the Partnership paid distributions of
cash generated from operations of approximately $405,000 (approximately $401,000
to the limited partners or $6.57 per limited  partnership unit).  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).  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 2001 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 15,066 limited partnership
units in the Partnership  representing 24.67% 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.

<PAGE>

                           PART II - OTHER INFORMATION



ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a) Exhibits:

               None.

            b) Reports on Form 8-K filed during the quarter ended June 30, 2001:

               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.
                                          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: