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 March 31, 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)

                                 March 31, 2001

<TABLE>
<CAPTION>


Assets
<S>                                                                          <C>
   Cash and cash equivalents                                                 $  197
   Receivables and deposits                                                      44
   Other assets                                                                  45
   Investment properties:
       Land                                                  $ 1,522
       Buildings and related personal property                 9,504
                                                              11,026
       Less accumulated depreciation                          (3,836)         7,190
                                                                            $ 7,476
Liabilities and Partners' (Deficit) Capital
Liabilities
   Accounts payable                                                          $ 28
   Tenant security deposit liabilities                                           49
   Accrued property taxes                                                        29
   Other liabilities                                                             63

Partners' (Deficit) Capital
   General partner                                             $ (58)
   Limited partners (61,063 units
      issued and outstanding)                                  7,365          7,307
                                                                            $ 7,476


                   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
                                                                    March 31,
                                                                2001          2000
Revenues:
<S>                                                            <C>           <C>
   Rental income                                               $ 419         $ 423
   Other income                                                    27            28
       Total revenues                                             446           451

Expenses:
   Operating                                                      183           175
   General and administrative                                      34            31
   Depreciation                                                    98            97
   Property taxes                                                  42            37
       Total expenses                                             357           340

Income before equity in income of joint venture                    89           111
Equity in income of joint venture                                  --            11

Net income                                                      $ 89         $ 122

Net income allocated to general partner (1%)                    $ 1           $ 1
Net income allocated to limited partners (99%)                     88           121

                                                                $ 89         $ 122

Net income per limited partnership unit                        $ 1.44        $ 1.98

Distributions per limited partnership unit                     $ 4.63        $19.60

                   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                 --          (3)        (283)        (286)

Net income for the three months
   ended March 31, 2001                   --           1           88           89

Partners' (deficit) capital
   at March 31, 2001                  61,063      $ (58)      $ 7,365      $ 7,307


                   See Accompanying Notes to Financial Statements

</TABLE>

<PAGE>

d)
                       UNITED INVESTORS INCOME PROPERTIES

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                   (in thousands)

<TABLE>
<CAPTION>

                                                                 Three Months Ended
                                                                       March 31,
                                                                  2001        2000
Cash flows from operating activities:
<S>                                                               <C>         <C>
  Net income                                                      $ 89        $ 122
  Adjustments to reconcile net income to net cash
   provided by operating activities:
     Equity in net income of joint venture                           --          (11)
     Depreciation                                                    98           97
     Change in accounts:
      Receivables and deposits                                        3          103
      Other assets                                                   (4)          (1)
      Accounts payable                                                7          (43)
      Tenant security deposit liabilities                            (2)           2
      Accrued property taxes                                         29           24
      Other liabilities                                             (29)         (40)

              Net cash provided by operating activities             191          253

Cash flows from investing activities:
  Property improvements and replacements                            (40)         (45)
  Distributions from joint venture                                   --           18
  Proceeds from sale of joint venture property                       --          400

              Net cash (used in) provided by investing
               activities                                           (40)         373

Cash flows used in financing activities:
  Distributions to partners                                        (286)      (1,209)

Net decrease in cash and cash equivalents                          (135)        (583)

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

Cash and cash equivalents at end of period                       $ 197        $ 584

                   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,  an  affiliate  of Apartment  Investment  and  Management
Company  ("AIMCO"),  all adjustments  (consisting of normal recurring  accruals)
considered  necessary  for a fair  presentation  have been  included.  Operating
results for the three month  period ended March 31,  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.

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 establishes  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 three month periods ended March 31, 2001 and 2000:

                                                                  2001      2000
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 23      $ 23
 Reimbursement for services of affiliates (included in
   general and administrative expenses)                             11         9
 Due to affiliate (included in other liabilities)                   21        21

During the three months ended March 31, 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
$23,000 for both of the three month periods ended March 31, 2001 and 2000.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses  amounting to approximately  $11,000 and $9,000 for the
three months ended March 31, 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. The commission was accrued at March 31, 2001 and 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 their
date of admission to the  Partnership.  At March 31, 2001, 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 14,671 limited partnership
units in the Partnership  representing 24.03% 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 three months ended March 31, 2001, the Partnership paid distributions
of cash  generated  from  operations of  approximately  $286,000  (approximately
$283,000  to the  limited  partners  or $4.63  per  limited  partnership  unit).
Subsequent  to March 31,  2001,  the  Partnership  paid a  distribution  of cash
generated from operations of approximately $119,000  (approximately  $118,000 to
the limited partners or $1.93 per limited  partnership  unit).  During the three
months  ended  March 31,  2000,  the  Partnership  paid a  distribution  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  $206,000 of
cash generated from operations  (approximately  $204,000 to the limited partners
or $3.34 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 three months ended March 31, 2001 and 2000:

                                                   Average Occupancy
      Property                                      2001       2000

      Bronson Place Apartments                      90%        93%
         Mountlake Terrace, Washington
      Meadow Wood Apartments                        92%        95%
         Medford, Oregon
      Defoors Crossing Apartments                   92%        96%
         Atlanta, Georgia

The  General  Partner  attributes  the  decreased  occupancy  at  Bronson  Place
Apartments, Meadow Wood Apartments, and Defoors Crossing Apartments to increased
competition and increased home purchases during the first quarter.

Results of Operations

The  Partnership  realized  net income of  approximately  $89,000  for the three
months ended March 31, 2001,  compared to net income of  approximately  $122,000
for the three months ended March 31, 2000.  The decrease in net income 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 total  revenues was due to a decrease in rental  income.  Rental
income   decreased   primarily  due  to  decreased   occupancy  at  all  of  the
Partnership's  investment  properties  which  more than  offset an  increase  in
average rental rates at all of the Partnership's investment properties.

Total expenses increased for the three months ended March 31, 2001 primarily due
to increased operating,  property tax, and general and administrative  expenses.
Operating  expenses  increased due to an increase in administrative  salaries at
Bronson  Place  Apartments  and an increase  in manager  salaries at Meadow Wood
Apartments. Property tax expense increased due to increases in assessed value at
Bronson  Place   Apartments  and  Defoors  Crossing   Apartments.   General  and
administrative  expenses increased  primarily due to an increase 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.

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  March  31,  2001,  the  Partnership   had  cash  and  cash   equivalents  of
approximately  $197,000  compared to  approximately  $584,000 at March 31, 2000.
Cash  and  cash  equivalents  decreased  by  approximately   $135,000  from  the
Partnership's  year ended  December 31, 2000, due to  approximately  $286,000 of
cash used in  financing  activities  and  approximately  $40,000 of cash used in
investing  activities,  which was partially offset by approximately  $191,000 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 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  three  months  ended  March  31,  2001,   the   Partnership   spent
approximately  $3,000 on  capital  improvements  at  Bronson  Place  Apartments,
consisting  primarily  of water  heater  unit  replacements,  carpet  and  vinyl
replacements and appliances.  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  $22,000,
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  three  months  ended  March  31,  2001,   the   Partnership   spent
approximately   $8,000  on  capital  improvements  at  Meadow  Wood  Apartments,
consisting  primarily  of carpet and vinyl  replacements,  appliances  and water
heater unit  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  $31,000,
consisting  primarily of water heater unit  replacements,  air conditioning unit
replacement,   appliances,   lighting   improvements   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  three  months  ended  March  31,  2001,   the   Partnership   spent
approximately  $29,000 on capital  improvements at Defoors Crossing  Apartments,
consisting   primarily  of  sub-metering   improvements,   carpet  replacements,
appliances,  gutter replacements and plumbing  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 $51,000, consisting primarily of water submetering.  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 three months ended March 31, 2001, the Partnership paid distributions
of cash  generated  from  operations of  approximately  $286,000  (approximately
$283,000  to the  limited  partners  or $4.63  per  limited  partnership  unit).
Subsequent  to March 31,  2001,  the  Partnership  paid a  distribution  of cash
generated from operations of approximately $119,000  (approximately  $118,000 to
the limited partners or $1.93 per limited  partnership  unit).  During the three
months  ended  March 31,  2000,  the  Partnership  paid a  distribution  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  $206,000 of
cash generated from operations  (approximately  $204,000 to the limited partners
or $3.34 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 14,671 limited partnership
units in the Partnership  representing 24.03% 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  March 31,
               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.
                                          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: