FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
                       QUARTERLY OR TRANSITIONAL REPORT

                 (As last amended by 34-32231, eff. 6/3/93.)

                   U.S. Securities and Exchange Commission
                           Washington, D.C.  20549


                                 FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934


              For the quarterly period ended September 30, 1996


[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
      EXCHANGE ACT

              For the transition period from.........to.........

                        Commission file number 0-17646


                      UNITED INVESTORS INCOME PROPERTIES
      (Exact name of small business issuer as specified in its charter)


       Missouri                                               43-1483942
(State or other jurisdiction of                             (IRS Employer
incorporation or organization)                              Identification No.)

One Insignia Financial Plaza, P.O. Box 1089
   Greenville, South Carolina                                   29602
(Address of principal executive offices)                      (Zip Code)


                   Issuer's telephone number (864) 239-1000



Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes  X  No


                        PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

a)                    UNITED INVESTORS INCOME PROPERTIES

                                BALANCE SHEET
                                 (Unaudited)
                       (in thousands, except unit data)

                              September 30, 1996


Assets
  Cash and cash equivalents:
     Unrestricted                                                 $   627
     Restricted-tenant security deposits                               50
  Accounts receivable                                                  14
  Escrow for taxes                                                    110
  Other assets                                                         52
  Investment properties:
     Land                                           $ 1,862
     Buildings and related personal property         10,303
                                                     12,165
     Less accumulated depreciation                   (2,521)        9,644

  Investment in Joint Venture                                         681

                                                                  $11,178
Liabilities and Partners' Capital (Deficit)

Liabilities
  Accounts payable                                                $    11
  Tenant security deposits                                             50
  Accrued taxes                                                        18
  Other liabilities                                                    49

Partners' Capital (Deficit)
  General partner                                   $   (22)
  Limited partners (61,063 units
     issued and outstanding)                         11,072        11,050

                                                                  $11,178

                 See Accompanying Notes to Financial Statements


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,
                                   1996           1995        1996          1995
<S>                              <C>            <C>         <C>           <C>
Revenues:
  Rental income                   $  415         $  382      $1,206        $1,116
  Other income                        22             35          81            87
       Total revenues                437            417       1,287         1,203

Expenses:
  Operating                          122            114         370           348
  General and administrative          18             22          57            58
  Maintenance                         43             74         137           177
  Depreciation                        93             89         268           259
  Property taxes                      37             37         113           114
       Total expenses                313            336         945           956

Equity in income of
  joint venture                        8              3          26            22

  Net income                      $  132         $   84      $  368        $  269

Net income allocated to
  general partner (1%)            $    1         $    1      $    4        $    3

Net income allocated to
  limited partners (99%)             131             83         364           266
                                  $  132         $   84      $  368        $  269

Net income per limited
  partnership unit                $ 2.15         $ 1.35      $ 5.96        $ 4.36
<FN>
                  See Accompanying Notes to Financial Statements
</TABLE>

c)                      UNITED INVESTORS INCOME PROPERTIES

               STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                   (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' capital (deficit) at
  December 31, 1995                  61,063   $   (22)    $  11,166    $  11,144

Partners' distributions                            (4)         (458)        (462)

Net income for the nine months
  ended September 30, 1996               --         4           364          368

Partners' capital (deficit) at
  September 30, 1996                 61,063   $   (22)    $  11,072     $ 11,050
<FN>
                 See Accompanying Notes to Financial Statements
</TABLE>

d)                    UNITED INVESTORS INCOME PROPERTIES

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

                                                               Nine Months Ended
                                                                 September 30,
                                                               1996        1995
<S>                                                         <C>         <C>
Cash flows from operating activities:
  Net income                                                 $  368      $  269
  Adjustments to reconcile net income to
    net cash provided by operating activities:
    Equity in net income of joint venture                       (26)        (22)
    Depreciation                                                268         259
    Amortization of lease commissions                             4          --
    Change in accounts:
      Restricted cash                                            (3)         (1)
      Accounts receivable                                         1           2
      Escrows for taxes                                         (62)        (40)
      Other assets                                               (5)         (2)
      Accounts payable                                           --          36
      Tenant security deposit liabilities                         3          (5)
      Accrued taxes                                              18          20
      Other liabilities                                          11          13

      Net cash provided by operating activities                 577         529

Cash flows from investing activities:
  Property improvements and replacements                       (125)       (122)
  Distributions from joint venture                               --           4

      Net cash used in investing activities                    (125)       (118)

Cash flows from financing activities:
  Partners' distributions                                      (462)       (501)

       Net cash used in financing activities                   (462)       (501)

Net decrease in cash and cash equivalents                       (10)        (90)

Cash and cash equivalents at beginning of period                637         868

Cash and cash equivalents at end of period                   $  627      $  778
<FN>
                See Accompanying Notes to Financial Statements
</TABLE>

e)                     UNITED INVESTORS INCOME PROPERTIES

                           NOTES TO FINANCIAL STATEMENTS
                                 (Unaudited)



NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of United Investors Income 
Properties ("The Partnership") have been prepared in accordance with generally 
accepted accounting principles for interim financial information and with the 
instructions to Form 10-QSB and Item 310(b)of Regulation S-B.  Accordingly, 
they do not include all of the information and footnotes required by generally 
accepted accounting principles for complete financial statements.  In the 
opinion of the General Partner (United Investors Real Estate, Inc.), 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, 1996, are not necessarily indicative of
the results that may be expected for the fiscal year ending December 31, 1996.
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, 1995.

Certain reclassifications have been made to the 1995 information to conform to 
the 1996 presentation.


NOTE B - BASIS OF ACCOUNTING

The financial statements include the Partnership's operating divisions, Bronson 
Place Apartments, Defoors Crossing Apartments, Meadow Wood Apartments, and 
Peachtree Corners Medical Building.  In addition, the Partnership owns a 35% 
interest in Corinth Square Associates ("Corinth").  The Partnership reflects 
its interest in Corinth utilizing the equity method whereby the original 
investment is increased by advances to Corinth and the Partnership's share of 
Corinth earnings.  The investment is reduced by distributions from Corinth and 
the Partnership's share of Corinth losses.

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 property 
management services based on a percentage of revenue and for reimbursement 
of certain expenses incurred by affiliates on behalf of the Partnership.  
Property management fees are included in operating expenses.  The following 
payments were made to affiliates of the General Partner for each of the nine 
months ended September 30, 1996 and 1995:
                  
                                                      Nine Months Ended      
                                                         September 30,    
                                                        1996       1995    
                                                        (in thousands)

Property management fees                                 $61        $58
Reimbursement for services of affiliates                  24         23

Additionally, the Partnership paid $29,000 and $25,000 during the nine months 
ended September 30, 1996 and 1995, respectively, to an affiliate of the General 
Partner for lease commissions related to new leases at the Partnership's 
commercial property.  These lease commissions are included in other assets and 
amortized over the term of the respective leases.

The Partnership insures its properties under a master policy through an agency 
and insurer unaffiliated with the General Partner.  An affiliate of the General 
Partner acquired, in the acquisition of a business, certain financial 
obligations from an insurance agency which was later acquired by the agent who 
placed the current year's master policy.  The current agent assumed the 
financial obligations to the affiliate of the General Partner who receives 
payments on these obligations from the agent.  The amount of the Partnership's 
insurance premiums accruing to the benefit of the affiliate of the General 
Partner by virtue of the agent's obligations is not significant.

NOTE D - REPURCHASE OF UNITS

The Partnership's partnership agreement contains a provision which states that 
the General Partner shall purchase up to 10% of the limited partnership units 
outstanding at the fifth anniversary date of the last Additional Closing Date 
and become a limited partner with respect to such units.  Pursuant to this 
provision, the General Partner accepted repurchase notices representing 
approximately 1.5% of the limited partnership units and, during the third 
quarter of 1995, the transfer of 950 units was effected.


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

  The Partnership's investment properties consist of three apartment complexes
and a commercial office building.  The following table sets forth the average
occupancy of the properties for the quarters ended September 30, 1996 and 1995:
                                                      
                                                      Average
                                                     Occupancy
    Property                                       1996       1995

  Bronson Place Apartments
    Mountlake Terrace, Washington                  93%         91%

  Meadow Wood Apartments
    Medford, Oregon                                94%         91%

  Defoors Crossing Apartments
    Atlanta, Georgia                               96%         98%

  Peachtree Corners Medical Building
    Atlanta, Georgia                               56%         20%

  The increase in occupancy at Meadow Wood Apartments is due to increased
resident retention efforts at the property.  The increase in occupancy at
Peachtree Corners Medical Building is due to increased marketing efforts and
property improvements made to attract quality, long-term tenants.  At September
30, 1996, occupancy had increased to 74%.

  The Partnership realized net income of $368,000 for the nine months ended
September 30, 1996, of which $132,000 was net income for the third quarter.  The
net income for the corresponding periods of 1995 was $269,000 and $84,000,
respectively. The increase in net income for the nine months ended September 30,
1996, was primarily due to an increase in rental income resulting from increased
rental rates at all of the residential properties.  Also contributing to the
increased rental income was the increase in occupancy at three of the
Partnerships' properties.  Net income also increased due to a decrease in
maintenance expenses resulting from exterior painting costs at Defoors Crossing
and Bronson Place during the third quarter of 1995.

  As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of its investment properties to assess
the feasibility of increasing rents, maintaining or increasing occupancy levels
and protecting the Partnership from increases in expenses. Due to changing
market conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

  At September 30, 1996, the Partnership held unrestricted cash and cash
equivalents of  $627,000 compared to $778,000 at September 30, 1995.  Net cash
provided by operating activities increased as a result of the increase in rental
income discussed above.  Net cash used in financing activities decreased in 1996
due to a decrease in distributions made to partners during the nine months ended
September 30, 1996, compared to the nine months ended September 30, 1995.

  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 property to adequately maintain the physical assets
and other operating needs of the Partnership.  Such assets are currently thought
to be sufficient for any near-term needs of the Partnership.  Distributions to
partners of $462,000 and $501,000 were made during the nine months ended
September 30, 1996 and 1995, respectively.  Future cash distributions will
depend on the levels of net cash generated from operations, property sales and
the availability of cash reserves.


                            PART II - OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

       a)   Exhibit 27 - Financial Data Schedule

       b)   Reports on Form 8-K:

            None filed during the quarter ended September 30, 1996.



                                     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
                      (A Missouri Limited Partnership)

                      By:  United Investors Real Estate, Inc., a
                           Delaware corporation, its General Partner


                      By:  /s/Carroll D. Vinson
                           Carroll D. Vinson
                           President


                      By:  /s/Robert D. Long, Jr.       
                           Robert D. Long, Jr.
                           Vice President/CAO


                      Date: November 8, 1996