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, 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)

                               September 30, 2001


<TABLE>
<CAPTION>

Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  303
   Receivables and deposits                                                      23
   Other assets                                                                  22
   Investment properties:
       Land                                                  $ 1,522
       Buildings and related personal property                 9,658
                                                              11,180
       Less accumulated depreciation                          (4,033)         7,147
                                                                            $ 7,495
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                          $ 50
   Tenant security deposit liabilities                                           53
   Accrued property taxes                                                        33
   Other liabilities                                                             82

Partners' (Deficit) Capital
   General partner                                             $ (59)
   Limited partners (61,063 units
      issued and outstanding)                                  7,336          7,277
                                                                            $ 7,495


                See Accompanying Notes to Financial Statements

</TABLE>

<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,
                                                2001        2000         2001         2000
Revenues
<S>                                            <C>         <C>         <C>          <C>
  Rental income                                $ 433       $ 420       $ 1,288      $ 1,274
  Other income                                     43          35          105          108
         Total revenues                           476         455        1,393        1,382

Expenses:
  Operating                                       187         175          546          517
  General and administrative                       23          29          104          101
  Depreciation                                     98          95          295          290
  Property taxes                                   31          41          115          118
         Total expenses                           339         340        1,060        1,026

Income before equity in (loss) income
  of joint venture                                137         115          333          356
Equity in (loss) income of joint venture           --          (1)          --           10

Net income                                     $ 137       $ 114        $ 333        $ 366

Net income allocated to general
  partner (1%)                                  $ 1         $ 1          $ 3          $ 4
Net income allocated to limited
  partners (99%)                                  136         113          330          362

                                               $ 137       $ 114        $ 333        $ 366

Net income per limited partnership
  unit                                        $ 2.23       $ 1.85       $ 5.40      $ 5.93
Distributions per limited
  partnership unit                            $ 2.50        $ --        $ 9.07      $ 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                 --          (6)        (554)        (560)

Net income for the nine months
   ended September 30, 2001               --           3          330          333

Partners' (deficit) capital
   at September 30, 2001              61,063      $ (59)      $ 7,336      $ 7,277

                See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

d)

                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                (in thousands)

<TABLE>
<CAPTION>

                                                                 Nine Months Ended
                                                                   September 30,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                              <C>          <C>
  Net income                                                     $ 333        $ 366
  Adjustments to reconcile net income to net cash
     provided by operating activities:
     Equity in net income of joint venture                           --          (10)
     Depreciation                                                   295          290
     Change in accounts:
         Receivables and deposits                                    24           95
         Other assets                                                19            5
         Accounts payable                                            29          (72)
         Tenant security deposit liabilities                          2            6
         Accrued property taxes                                      33           27
         Other liabilities                                          (10)         (26)
              Net cash provided by operating activities             725          681

Cash flows from investing activities:
  Property improvements and replacements                           (194)        (103)
  Distributions from joint venture                                   --           12
  Proceeds from sale of joint venture property                       --          400
              Net cash (used in) provided by investing
                  activities                                       (194)         309

Cash flows used in financing activities:
  Distributions to partners                                        (560)      (1,684)

Net decrease in cash and cash equivalents                           (29)        (694)

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

Cash and cash equivalents at end of period                       $ 303        $ 473

                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 nine month  periods  ended  September 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 or accrued to affiliates of the
General Partner during the nine month periods ended September 30, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 72      $ 69
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             48        37
 Due to affiliate (included in other liabilities)                   21        21

During the nine months  ended  September  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
$72,000  and  $69,000 for the nine  months  ended  September  30, 2001 and 2000,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately  $48,000 and $37,000 for the
nine months ended September 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 September 30, 2001, the limited partners had not received their
priority return.  Therefore,  the commission is included in other liabilities at
September 30, 2001.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  currently own 15,256 limited partnership
units in the Partnership  representing 24.98% 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 its affiliation with
the General Partner.

Note C - Distributions

During  the  nine  months  ended  September  30,  2001,  the  Partnership   paid
distributions  of cash  generated  from  operations  of  approximately  $560,000
(approximately $554,000 to the limited partners or $9.07 per limited partnership
unit). Subsequent to September 30, 2001, the Partnership declared a distribution
from operations of approximately $102,000 (approximately $101,000 to the limited
partners or $1.65 per limited  partnership  unit).  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).

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, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

      Bronson Place Apartments                      94%        92%
         Mountlake Terrace, Washington
      Meadow Wood Apartments                        94%        97%
         Medford, Oregon
      Defoors Crossing Apartments                   91%        96%
         Atlanta, Georgia

The General Partner attributes the decreased occupancy at Meadow Wood Apartments
to increased  home purchases and increased  employment  transfers and layoffs in
the Medford,  Oregon area during the nine months ended  September 30, 2001.  The
General  Partner   attributes  the  decreased   occupancy  at  Defoors  Crossing
Apartments  to  increased  concessions  offered by  competitors  due to a softer
rental market caused by increased home purchases.

Results of Operations

The  Partnership  realized  net income of  approximately  $333,000  for the nine
months ended September 30, 2001 compared to net income of approximately $366,000
for the nine months ended September 30, 2000. The  Partnership's  net income for
the three months ended September 30, 2001 was approximately $137,000 compared to
net income of  approximately  $114,000 for the three months ended  September 30,
2000.  The decrease in net income for the nine month period ended  September 30,
2001 is due to 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 partially  offset by a slight increase in total revenues.  The
increase in net income for the three month  period ended  September  30, 2001 is
due to an increase in total revenues.

Total revenues  increased for the nine month period ended September 30, 2001 due
to an increase in rental income  partially offset by a decrease in other income.
Total revenues increased for the three months ended September 30, 2001 due to an
increase in rental  income and other income.  Rental  income  increased for both
periods  primarily  due to an  increase  in average  rental  rates at all of the
Partnership's  investment  properties  and an increase in  occupancy  at Bronson
Place  Apartments  which more than offset a decrease in occupancy  and increased
concession  costs at Meadow Wood  Apartments  and Defoors  Crossing  Apartments.
Other income  increased for the three month period ended  September 30, 2001 due
to  increased  utility  reimbursements  primarily  at Bronson  Place  Apartments
partially  offset by reduced  interest income resulting from lower cash balances
in interest bearing  accounts.  Other income decreased for the nine month period
ended September 30, 2001 due primarily to decreased  interest  income  resulting
from lower average cash balances in interest bearing  accounts  partially offset
by increased utility reimbursements primarily at Bronson Place Apartments.

Total expenses  increased for the nine month period ended September 30, 2001 due
to increased operating,  depreciation,  and general and administrative  expenses
partially offset by decreased property tax expense. Operating expenses increased
for the nine  month  period  ended  September  30,  2001 due to an  increase  in
employee  salaries  at all  of the  Partnership's  investment  properties.  This
increase was  partially  offset by reduced  maintenance  costs at Bronson  Place
Apartments and Meadow Wood Apartments and reduced  advertising expense primarily
at Defoors  Crossing  Apartments.  Depreciation  expense  increased for the nine
month  period ended  September  30, 2001 due to capital  improvements  completed
during the past twelve months. Property tax expense decreased for the nine month
period ended September 30, 2001 due to a tax refund received by Defoors Crossing
Apartments in 2001. General and  administrative  expenses increased for the nine
months  ended  September  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 September 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  September  30,  2001,  the  Partnership  had cash and  cash  equivalents  of
approximately $303,000 compared to approximately $473,000 at September 30, 2000.
Cash and cash equivalents  decreased by approximately  $29,000 from December 31,
2000 due to  approximately  $194,000 of cash used in  investing  activities  and
approximately $560,000 of cash used in financing activities, which was partially
offset by approximately $725,000 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  nine  months  ended  September  30,  2001,  the  Partnership  spent
approximately  $65,000 on budgeted  and  non-budgeted  capital  improvements  at
Bronson Place Apartments, consisting primarily of carpet and vinyl replacements,
appliances and other building 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
$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  nine  months  ended  September  30,  2001,  the  Partnership  spent
approximately  $55,000 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   $35,000,   consisting   primarily  of   appliances   and  carpet
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,  2001,  the  Partnership  spent
approximately  $74,000 on budgeted  and  non-budgeted  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  $58,000,
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  nine  months  ended  September  30,  2001,  the  Partnership   paid
distributions  of cash  generated  from  operations  of  approximately  $560,000
(approximately $554,000 to the limited partners or $9.07 per limited partnership
unit). Subsequent to September 30, 2001, the Partnership declared a distribution
from operations of approximately $102,000 (approximately $101,000 to the limited
partners or $1.65 per limited  partnership  unit).  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).  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 monthly 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 15,256 limited partnership
units in the Partnership  representing 24.98% 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 its 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  September
                  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: