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, 1997


[ ]  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                               (IRS Employer
incorporation or organization)                              Identification No.)

                 One Insignia Financial Plaza, P.O. 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

                        PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

a)                    UNITED INVESTORS INCOME PROPERTIES

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

                              September 30, 1997


Assets
  Cash and cash equivalents:
     Unrestricted                                                  $   724
     Restricted-tenant security deposits                                53
   Accounts receivable                                                  12
  Escrows for taxes                                                    149
  Other assets                                                          65
  Investment in joint venture                                          623
  Investment properties:
     Land                                           $  1,862
     Buildings and related personal property          10,464
                                                      12,326
     Less accumulated depreciation                    (2,899)        9,427

                                                                   $11,053

Liabilities and Partners' Capital (Deficit)

Liabilities
  Accounts payable                                                 $    20
  Tenant security deposits                                              53
  Accrued taxes                                                         32
  Other liabilities                                                     35

Partners' Capital (Deficit)
  General partner's                                 $    (24)
  Limited partners' (61,063 units              
     issued and outstanding)                          10,937        10,913

                                                                   $11,053

                 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,
                                   1997         1996           1997           1996
<S>                              <C>          <C>            <C>            <C>
Revenues:
  Rental income                   $  450       $  415         $1,297         $1,206
  Other income                        25           22             76             81
       Total revenues                475          437          1,373          1,287

Expenses:
  Operating                          153          122            414            370
  General and administrative          23           18             64             57
  Maintenance                         43           43            135            137
  Depreciation                        98           93            286            268
  Property taxes                      35           37            118            113
       Total expenses                352          313          1,017            945

Equity in income of
  joint venture                        4            8             17             26

Net income                        $  127       $  132         $  373         $  368

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

Net income allocated to
  limited partners (99%)             126          131            369            364
                                  $  127       $  132         $  373         $  368
Net income per limited
  partnership unit                $ 2.06       $ 2.15         $ 6.04         $ 5.96
<FN>
                  See Accompanying Notes to Financial Statements
</FN>
</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's   Partners'       Total
<S>                                  <C>        <C>        <C>            <C>
Original capital contributions        61,063     $    --    $  15,266      $  15,266

Partners' (deficit) capital at
  December 31, 1996                   61,063       $  (23)   $  11,025     $  11,002

Partners' distributions                   --           (5)        (457)         (462)

Net income for the nine months
  ended September 30, 1997                --            4          369           373

Partners' (deficit) capital at
  September 30, 1997                  61,063       $  (24)   $  10,937     $  10,913
<FN>
                 See Accompanying Notes to Financial Statements
</FN>
</TABLE>

d)                    UNITED INVESTORS INCOME PROPERTIES

                           STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                                (in thousands)
<TABLE>
<CAPTION>
                                                              Nine Months Ended
                                                                September 30,
                                                              1997         1996
<S>                                                         <C>          <C>
Cash flows from operating activities:
  Net income                                                 $  373       $  368
    Adjustments to reconcile net income to
    net cash provided by operating activities:
    Equity in net income of joint venture                       (17)         (26)
    Depreciation                                                286          268
    Amortization of lease commissions                             5            4
    Change in accounts:
      Restricted cash                                            (4)          (3)
      Accounts receivable                                        (3)           1
      Escrows for taxes                                         (80)         (62)
      Other assets                                               15           (5)
      Accounts payable                                            3           --
      Tenant security deposit liabilities                         4            3
      Accrued taxes                                              32           18
      Other liabilities                                          13           11

      Net cash provided by operating activities                 627          577

Cash flows from investing activities:
  Property improvements and replacements                       (139)        (125)
  Distributions from joint venture                               65           --

      Net cash used in investing activities                     (74)        (125)

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

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

Net increase (decrease) in unrestricted cash and cash 
  equivalents                                                    91          (10)

Unrestricted cash and cash equivalents at beginning
  of period                                                     633          637

Unrestricted cash and cash equivalents at end of period      $  724       $  627
<FN>
                 See Accompanying Notes to Financial Statements
</FN>
</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 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, 1997, are not
necessarily indicative of the results that may be expected for the fiscal year
ending December 31, 1997.  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, 1996.

Certain reclassifications have been made to the 1996 information to conform to
the 1997 presentation.

NOTE B - BASIS OF ACCOUNTING

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 services based
on a percentage of revenue and for reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership.  The following payments were made to
affiliates of Insignia for each of the nine month periods ended September 30,
1997 and 1996 (in thousands):
                

                                                             1997      1996


Property management fees (included in operating expense)     $64         $61

Reimbursement for services of affiliates (included in
  general and administrative and operating expenses)          30          24



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

For the period of January 1, 1996 to August 31, 1997, the Partnership insured
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.


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, 1997 and 1996:

                                                          Average
                                                         Occupancy
Property                                          1997              1996

Bronson Place Apartments
   Mountlake Terrace, Washington                   96%               93%

Meadow Wood Apartments
   Medford, Oregon                                 92%               94%

Defoors Crossing Apartments
   Atlanta, Georgia                                94%               96%

Peachtree Corners Medical Building
   Atlanta, Georgia                                74%               56%


The increase in occupancy at Peachtree Corners Medical Building is due to
increased marketing efforts and property improvements made during the second and
third quarters of 1996, to attract quality long-term tenants.

The Partnership realized net income of $373,000 for the nine months ended
September 30, 1997, of which approximately $127,000 was income for the third
quarter. The net income for the corresponding periods of 1996 was approximately
$368,000 and approximately $132,000, respectively.  The increase in net income
for the nine months ended September 30, 1997, was primarily due to an increase
in rental revenue resulting from the increase in occupancy at Peachtree Corners.
Also contributing to the increased rental revenue were increased rental rates at
Bronson Place and Meadow Wood Apartments.  The increase in rental income was
partially offset by increased operating and depreciation expenses.  Operating
expenses increased during the three and nine month periods primarily due to
advertising and rental concessions at Defoors Crossing, which were incurred in
an effort to increase occupancy at the property. Depreciation expenses increased
primarily due to tenant improvements at Peachtree during the second and third
quarters of 1996.

Included in maintenance expense for the nine months ended September 30, 1997 is
approximately $10,000 of major repairs and maintenance comprised primarily of
swimming pool and exterior building repairs.  Included in maintenance for the
nine months ended September 30, 1996 is approximately $21,000 of major repairs
and maintenance comprised primarily of parking lot and exterior building
repairs.

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, 1997, the Partnership held unrestricted cash and cash
equivalents of $724,000 compared to $627,000 at September 30, 1996.  Net cash
provided by operating activities increased due to increased rental income and a
decrease in other assets. Net cash used in investing activities decreased in
1997 due to cash distributions from the joint venture being received during the
nine months ended September 30, 1997, compared to no distributions in the nine
months ended September 30, 1996.

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 approximately $462,000 were made during each of the nine month
periods ended September 30, 1997 and 1996, 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, is filed as an exhibit to this
            report.

       b)   Reports on Form 8-K:

            None filed during the quarter ended September 30, 1997.

                                     SIGNATURES


  In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant has duly 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/Carroll D. Vinson
                           Carroll D. Vinson
                           President


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


                      Date: November 7, 1997