UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549

                                Form 10-Q


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

For the quarterly period ended      September 30, 1995                   


                                   OR


[ ]            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                      33-17577                     


U.S. Realty Income Partners L.P.                                         
      (Exact name of small business issuer as specified in its charter)

            DELAWARE                                         62-1331754  

(State or other jurisdiction of                        (I.R.S. Employer  
  
incorporation or organization)                         Identification No.)

  P.O. Box 50507, Nashville, TN                                      37205 

(Address of principal executive offices)                     (Zip Code)

                                  (615) 298-5700                         

          (Registrant's telephone number, including area code)
  
                                                                         

(Former name, former address and former fiscal year,  
if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 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          


                        


                    U.S. REALTY INCOME PARTNERS L.P.

                                  INDEX



PART I      Financial Information


Item l.    Financial Statements                                        3

           Compilation Report                                          4
           
           Balance Sheets at September 30, 1995 & December               
           31, 1994                                                    5
                
           Statements of Partnership Equity for the period 
           January 1, 1994 through September 30, 1995                  6

           Statements of Operations for the three months         
           & nine months ended September 30, 1995 & 1994               7 
                                                                       
           Statements of Cash Flows for the nine months ended    
           September 30, 1995 & 1994                                   8
   
           Notes to Financial Statements                          9 - 12
               

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                   13 - 15

PART II    Other Information

Item 1.    Legal Proceedings                                          16

Item 2.    Changes in Securities                                      16

Item 3.    Default Upon Senior Securities                             16
                      
Item 4.    Submissions of Matters to a Vote of Security Holders       16

Item 5.    Other Information                                          16 
   
Item 6.    Exhibits and Reports on Form 8-K                           16

SIGNATURES                                                            17















                     PART I - FINANCIAL INFORMATION



ITEM 1.  Financial Statements

          The following balance sheet at September 30, 1995 (unaudited)
and statements of operations, partnership equity, and cash flows for the
three and nine months ended September 30, 1995 (unaudited), for U.S.
Realty Income Partners L.P. (a Delaware limited partnership) (the
"Partnership"), have not been examined by independent public accountants
but reflect, in the opinion of management, all adjustments (consisting of
normal recurring accruals) necessary to present fairly the information
required.

         These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 1994
Annual Report, as reported on Form 10-K.




























<PAGE>



                           OSBORNE & CO., P.C.
                    761 OLD HICKORY BLVD., SUITE 201
                          BRENTWOOD, TN  37027





To the Partners
U.S. Realty Income Partners L.P.
102 Woodmont Blvd., Suite 410
Nashville, TN  37205

We have compiled the accompanying balance sheet of U.S. Realty Income
Partners L.P. (a limited partnership) as of September 30, 1995 and the
related statements of operations, partnership equity, and cash flows for
the three months and nine months then ended, in accordance with Statements
on Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements
information that is the representation of management.  We have not audited
or reviewed the accompanying financial statements and, accordingly, do not
express an opinion or any other form of assurance on them.

We are not considered to be independent with respect to U.S. Realty Income
Partnerships L.P. according to Securities and Exchange Commission
regulations.

The financial statements for the year ended December 31, 1994, were
audited by other accountants, and they expressed an unqualified opinion on
them in their report dated March 15, 1995, but they have not performed any
auditing procedures since that date.

October 30, 1995


Certified Public Accountants





<PAGE>

                    U.S. REALTY INCOME PARTNERS L.P.

                              (A LIMITED PARTNERSHIP)

                             BALANCE SHEETS

                                           Unaudited           Audited
                                         September 30,       December 31, 
                                             1995               1994    

                  ASSETS

CASH                                      $  166,472        $  165,281

TENANT RECEIVABLES                             3,848             5,879

PROPERTY AND IMPROVEMENTS, net of
  accumulated depreciation of         
  $1,075,005 and $958,434                  4,234,922         4,351,493

INVESTMENT IN JOINT VENTURE                    1,000             1,000

OTHER ASSETS                                 280,076           299,587

     TOTAL ASSETS                         $4,686,318        $4,823,240


       LIABILITIES AND PARTNERSHIP EQUITY

ACCOUNTS PAYABLE                          $    7,843        $    1,560

ACCRUED EXPENSES                              66,504           114,438

NOTES PAYABLE                              3,652,600         3,681,141

     TOTAL LIABILITIES                     3,726,947         3,797,139


MINORITY PARTNER'S INTEREST IN JOINT
  VENTURE                                (   133,228)      (   136,399)

PARTNERSHIP EQUITY                         1,092,599         1,162,500

     TOTAL PARTNERSHIP EQUITY                959,371         1,026,101

  TOTAL LIABILITIES & PARTNERSHIP EQUITY  $4,686,318        $4,823,240<PAGE>
                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                    STATEMENTS OF PARTNERSHIP EQUITY

Period from January 1, 1994 to September 30, 1995


                                      Limited     General
                                     Partners     Partner       Total

Distributive share of 
  net earnings                         95%           5%          100%    

Balance at January 1, 1994        $1,421,694    ($173,992)   $1,247,702

Net loss                         (    80,942)   (   4,260)  (    85,202)

Balance at December 31, 1994       1,340,752    ( 178,252)    1,162,500

Net loss                         (    66,406)   (   3,495)  (    69,901)

Balance at September 30, 1995     $1,274,346    ($181,747)  ($1,092,599



<PAGE>

                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                        STATEMENTS OF OPERATIONS

For the Three Months and Six Months Ended
September 30, 1995 and 1994


                      Unaudited    Unaudited    Unaudited    Unaudited
                      3 Months     3 Months     9 Months     9 Months
                        1995         1994         1995         1994    
                        
Revenues
  Rental income        $ 140,465    $ 144,999    $ 468,268    $ 448,975
  CAM reimbursements      19,910       23,083       62,391       75,036
  Miscellaneous               63          198          254          427
  Interest income          1,838          526        4,518        1,244

                         162,276      168,806      535,431      525,682

Expenses
  Interest                91,477       92,403      275,146      277,854
  Professional fees        6,053        5,950       23,769       20,798
  Depreciation            38,857       38,852      116,571      116,555
  Amortization             6,113        6,759       19,238       20,277
  Property taxes          17,012       17,012       51,035       51,035
  Leasing & admin.        22,563       12,855       53,194       44,789
  Management fees          7,824        6,840       22,239       19,816
  Repairs                 10,019        7,327       26,153       22,358
  Insurance                4,700        4,569        4,700        4,569

                         204,618      192,567      592,045      578,051

Net Loss Before Minority
Partner's Share of Loss(  42,342)   (  23,761)   (  56,614)   (  52,369)

Minority Partner's Interest
in Share of Loss           5,168        1,668    (   3,171)   (     715)

Loss From Operations   (  37,174)   (  22,093)   (  59,785)   (  53,084)

Provision for Loss in
Investment in JV       (   1,225)   (   6,063)   (  10,116)   (  19,810)

Net Loss               ($ 38,399)   ($ 28,156)   ($ 69,901)   ($ 72,894)

Net Loss per Unit      ($   7.51)   ($   5.51)   ($  13.67)   ($  14.25)

Weighted Average
Number of Units            4,858        4,858        4,858        4,858




                                               

                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                        STATEMENTS OF CASH FLOWS
  
                                           
                                            Unaudited Nine Months Ending
                                                    September 30,
                                                 1995           1994    

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                           ($ 69,901)     ($ 72,894)
  Adjustments to reconcile net income (loss)
    to net cash provided by (used in) operating 
    activities:                                 
    Minority partner's interest in net loss
        of consolidated partnership               3,171            715
      Depreciation                              116,571        116,555
      Amortization                               19,238         20,277
      Decrease (increase) in:
        Tenant receivables                        2,031     (    2,271)
        Other assets                                272              0
      Increase (decrease) in:
        Accounts payable                          6,283          1,853 
        Professional Fees Payable             (  30,921)    (    8,419)
        Tenant Deposits                               0     (    1,117)
        Accrued expenses                      (  17,012)    (   17,012)
NET CASH PROVIDED (USED) BY OPERATING
    ACTIVITIES                                   29,732         37,687 

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and improvements               0     (      935)
  NET CASH PROVIDED BY INVESTING ACTIVITIES           0     (      935)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on mortgage note                   (  28,541)    (   25,833)
  NET CASH PROVIDED BY FINANCING ACTIVITIES   (  28,541)    (   25,833)
                                    
NET INCREASE (DECREASE) IN CASH                   1,191     (   10,919)
  
CASH AT BEGINNING OF YEAR                       165,281        118,781

CASH AT END OF PERIOD                         $ 166,472      $ 129,700
 
SUPPLEMENTAL DISCLOSURES:

  INTEREST PAID                               $ 275,146      $ 277,854


<PAGE>


                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                           September 30, 1995

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1994 for a description of the accounting policies which
have been continued without change.  Also, refer to the footnotes of these
annual statements for additional details of the Partnership's financial
condition.  The details in those notes have not significantly changed
except as a result of normal transactions in the interim.  In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary have been included.  Operating results are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1995.

B.  INVESTMENT IN JOINT VENTURES

    The Partnership had a 50% interest in DR/US West End General
Partnership, a joint venture formed to own and operate a commercial office
building in Nashville, Tennessee.  The Company's initial investment of
$900,000 in the general partner joint venture was made on November 1,
1988.  Effective December 31, 1991, the Partnership adopted the
liquidation method of accounting for its investment in the joint venture.
Accordingly, the basis has been held at $1,000 since December 31, 1991.

Effective August 1995, the joint venture contributed all assets and
liabilities to a new limited liability company, Prudential/Daniel Office
Venture, LLC in return for a 3.9% equity interest.  See "Management
Discussion" for a more comprehensive description of this transaction.







<PAGE>
                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                           September 30, 1995

                                continued



B.  TRANSACTIONS WITH AFFILIATES

    Fees and other costs and expense paid to the general partner or its
affiliates were as follows:
                                       
                                Nine Months Ended       Year Ended       
                                  September 30,         December 31,
                                     1995                  1994    
   
   Administrative expenses          $ 67,000            $ 36,000


      In 1995, the Partnership paid $40,000 in deferred payments in
addition to normal recurring charges.

      The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent
parties for similar services.



<PAGE>
                     PART I - FINANCIAL INFORMATION
                                continued



ITEM 2.  Management's Discussion and Analysis of Financial Condition  and
Results of Operations  


Liquidity and Capital Resources
         
         At December 31, 1994, the partnership had $165,281 in cash and
cash equivalents.  This represents 3.40% of capital raised.  At September
30, 1995, the Partnership had $166,472 in cash and cash equivalents.  This
represents 3.43% of capital raised.  The Partnership had established a
working capital reserve of 5% of the gross proceeds of the offering. 
After May 15, 1990, the Partnership's Prospectus provided that the working
capital reserve could be reduced to 3% of capital raised depending upon
the Partnership's experience with its properties.  The working capital was
reduced to allow the Partnership to pay costs associated with the DR/US
refinancing.  In the event such reserves are insufficient to satisfy
unanticipated costs, the Partnership will be required to borrow additional
funds to meet such costs.  The General Partner does not anticipate having
to borrow for working capital reserves in 1995.

          The General Partner has deemed it advisable not to make any cash
distributions since May 1990.  The General Partner does not expect to make
any cash distributions in 1995.


                                    
Bellevue

        The Bellevue property was 100% leased at December 31, 1994 and
September 30, 1995.  Lease rents from the tenants amounts to $46,822 per
occupancy month.  In addition, the tenants pay common area maintenance
charges of $6,636 per month for a total of $53,458 per month.  

       On February 1, 1989, the Joint Venture obtained a $3,800,000 first
mortgage loan on this property from an unaffiliated lender.  The mortgage
bears interest at a rate of 10% per annum and required monthly
installments of interest only through February 1, 1991.   Monthly debt
service was $31,667 until March 1991 at which time monthly installments of
principal and interest rose to $33,743.  The Joint Venture has paid debt
service on a current basis.

In the first quarter of 1996, the first mortgage will become due. 
Negotiations have begun to refinance this indebtedness.  The results of
our efforts will be communicated on a timely basis.


<PAGE>

DR/US WEST END
      
      After many months of negotiations with Prudential Life Insurance
Company, an agreement was reached in early August to form a limited
liability company known as Prudential/Daniel Office Venture, LLC.

      Assets of the new company are:  1) The 107,000 square feet 3310
Office Building located in Nashville, Tennessee, 2) The 108,113 square
feet Somerset Park Business Center, a six story office building located in
Raleigh, North Carolina and, 3) Somerset Park, four two story office
buildings totaling 207,326 square feet, also located in Raleigh, North
Carolina.

      The total value of the properties is $34,925,000 with a value of
$9,531,000 for the 3310 Office Building, $8,458,000 for the Somerset
Business Center and $16,936,000 for Somerset Park.

      The capital positions for each venture is $31,432,500 for
Prudential, $1,361,445 for U.S. Realty Income Partners for their interest
in the 3310 Office Building, $355,600 for Daniel's position in the 3310
Office Building and $1,775,455 for Daniel's interest in the Somerset
Buildings.

      Prudential's capital contribution of $31,432,000 included the payoff
of $7,537,955 of debt on the 3310 Office Building, plus $120,000 repair
escrow for a new roof.  The remainder of the money purchased Metropolitan
Life Insurance's interest in the Raleigh properties, payoff of debt on the
properties, and transaction costs including due diligence, closing costs,
and fees for professional services (legal and accounting) totaling 1.5% of
the transaction.

      By Prudential paying off all debt on the properties, cash flow will
be available to the investors in 1996.  In addition, monies previously
used to pay PNC bank from Bellevue Plaza will now become available for
distribution.  Plans call for a distribution one time a year to keep the
administrative and postage costs to a minimum.

      The decision to join Prudential and contribute the 3310 Office
Building property to the venture was made taking into consideration the
following:

      A.    The South Trust Bank first mortgage on 3310 Office Building
            matures in April, 1997.

      B.    Gresham and Smith's lease expires eighteen months after the
            loan is due.  They lease approximately 47% of the building.

      C.    All existing cash flow between now and the year 2,000 would
            have to be used to pay debt and set up reserves either to
            replace Gresham and Smith and/or make tenant improvements.  Up
            to $1,200,000 is projected to be required when new tenants are
            found.








      The alternatives considered were:

      A.    Refinance:  With Gresham and Smith's lease ending in 1998, no
            lender wanted to make a new loan with this uncertainty. 
            Gresham and Smith would not commit to extend their lease at
            this time.  Also, if a loan could be procured, it would not be
            of sufficient amount to pay off all existing debt.

      B.    Sell the property:  The mortgage problem prevented a sale to
            potential buyers.  Once a cash buyer (Prudential) was located,
            the problem of the mortgages went away leaving only the
            Gresham and Smith lease problem that does not have to be
            solved until 1998.

      First and foremost, conservation of the investors capital has been
the goal of your General Partners.  You will remember that in 1992, we
were able to save the 3310 Office Building when the building was put into
bankruptcy.  By doing this we were able to reduce the outstanding first
mortgage from $12 million to $7.5 million including a second mortgage with
PNC Bank.  That transaction enabled us to bring stability to the
partnership and preserve our asset while reducing the indebtedness.

      By making our new agreement with Prudential, we have accomplished
the following:

      A.    Eliminated the mortgage problem by paying off all debt.

      B.    Eliminated most of the risk involving the Gresham and Smith
            lease.

      C.    Strengthen our position by having a new partner, Prudential,
            who has deep pockets.

      D.    Free up money now being used for debt service from Bellevue
            Plaza that can be used for distribution to partners.

      E.    Spread the risk to three buildings and two cities from one
            building in one city.

      F.    Accomplished the above with no new tax to be paid by the
            partners of U.S. Realty Income Partners.



<PAGE>
                     PART I - FINANCIAL INFORMATION
                                continued

          Results of Operations

              The Partnership holds joint venture interests in two joint
ventures, Bellevue Plaza Partners (66 2/3%) and DR/US West End General
Partnership (50%).  The operational results of the Partnership for the
nine months ending September 30, 1995 are summarized below.

                            Bellevue     Partnership          Total

Revenues                  $533,695        $  1,736          $535,431  

Operating expenses         124,645          66,561           191,206
Interest                   275,146            -              275,146
Depreciation & amort.      124,392          11,417           135,809

                           524,183          77,978           602,161

Net income (loss)            9,512       (  76,242)        (  66,730)

Partnership share          66 2/3%            50%              100%

Partnership net income
  (loss)                   $  6,341      ($ 76,242)        ($ 69,901)
Partnership Oper. cash        
  flow                     $ 94,557      ($ 64,825)        ($ 29,732)


          Operational results for the comparable nine month period ended
September 30, 1994 were:

                           Bellevue      Partnership          Total 

Revenues                  $525,482        $    200          $525,682
Operating expenses         116,471          66,704           183,175
Interest                   277,854            -              277,854
Depreciation & amort.      129,011           7,821           136,832
                           523,336          74,525           597,861

Net loss                     2,146       (  74,325)        (  72,179)

Partnership share          66 2/3%            50%              100%

Partnership net inc.  
(loss) from oper.         $  1,431       ($ 74,325)        ($ 72,894)

Partnership oper-      
  ating cash flow         $104,191       ($ 66,504)         $ 37,687




         The Partnership utilized the proceeds of the offering to acquire,
operate and hold for investment existing income producing commercial real
estate properties.  Since the proceeds of the offering were less than the
maximum amount the Partnership was unable to diversify its investments to
the extent initially desired.




<PAGE>
                       PART II - OTHER INFORMATION


ITEM 1.    Legal Proceedings

               None.

ITEM 2.    Changes in Securities

               None.

ITEM 3.    Default Upon Senior Securities

               None.

ITEM 4.    Submission of Matters to a Vote of Security Holders
 
               None.

ITEM 5.    Other Information
          
               None.

ITEM 6.    Exhibits and Reports on Form 8-K

               1.  Exhibits

                     None.
                                               
               2.  Form 8-K.

                     None.



                            


























                               SIGNATURES




     Pursuant to the requirements of Section 13 or 15(d) 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.


                                 U.S. REALTY INCOME PARTNERS L.P.
                                 By:  Vanderbilt Realty Joint Venture,
                                      the General Partner

                                 By:  Vanderbilt Realty Associates, Inc.
                                      its Managing General Partner


                                 By:      Robert Bond Miller             
                                      Robert Bond Miller
                                      President, Director, Chief Executive 
                                      Officer, Chief Financial Officer and
                                      Chief Accounting Officer



November 8, 1995


<PAGE>
[{"type": "10-Q", "sequence": "1", "secsgml_size_bytes": 26420}]
{"company-data": {"conformed-name": "US REALTY INCOME PARTNERS LP", "cik": "0000822819", "assigned-sic": "6532", "irs-number": "621331754", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "033-17577", "film-number": "95591409"}, "business-address": {"street1": "102 WOODMONT BLVD STE 110", "street2": "P O BOX 50507", "city": "NASHVILLE", "state": "TN", "zip": "37205", "phone": "6152985700"}, "mail-address": {"street1": "P O BOX 50507", "city": "NASHVILLE", "state": "TN", "zip": "37205"}}
UNITED STATES
                   SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C.  20549

                                Form 10-Q

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

For the quarterly period ended      September 30, 1995                   

                                   OR

[ ]            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                      33-17577                     

U.S. Realty Income Partners L.P.                                         
      (Exact name of small business issuer as specified in its charter)

            DELAWARE                                         62-1331754  

(State or other jurisdiction of                        (I.R.S. Employer  
  
incorporation or organization)                         Identification No.)

  P.O. Box 50507, Nashville, TN                                      37205 

(Address of principal executive offices)                     (Zip Code)

                                  (615) 298-5700                         

          (Registrant's telephone number, including area code)
  
                                                                         

(Former name, former address and former fiscal year,  
if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 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          

                        

                    U.S. REALTY INCOME PARTNERS L.P.

                                  INDEX

PART I      Financial Information

Item l.    Financial Statements                                        3

           Compilation Report                                          4
           
           Balance Sheets at September 30, 1995 & December               
           31, 1994                                                    5
                
           Statements of Partnership Equity for the period 
           January 1, 1994 through September 30, 1995                  6

           Statements of Operations for the three months         
           & nine months ended September 30, 1995 & 1994               7 
                                                                       
           Statements of Cash Flows for the nine months ended    
           September 30, 1995 & 1994                                   8
   
           Notes to Financial Statements                          9 - 12
               

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                   13 - 15

PART II    Other Information

Item 1.    Legal Proceedings                                          16

Item 2.    Changes in Securities                                      16

Item 3.    Default Upon Senior Securities                             16
                      
Item 4.    Submissions of Matters to a Vote of Security Holders       16

Item 5.    Other Information                                          16 
   
Item 6.    Exhibits and Reports on Form 8-K                           16

SIGNATURES                                                            17

                     PART I - FINANCIAL INFORMATION

ITEM 1.  Financial Statements

          The following balance sheet at September 30, 1995 (unaudited)
and statements of operations, partnership equity, and cash flows for the
three and nine months ended September 30, 1995 (unaudited), for U.S.
Realty Income Partners L.P. (a Delaware limited partnership) (the
"Partnership"), have not been examined by independent public accountants
but reflect, in the opinion of management, all adjustments (consisting of
normal recurring accruals) necessary to present fairly the information
required.

         These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 1994
Annual Report, as reported on Form 10-K.
OSBORNE & CO., P.C.
                    761 OLD HICKORY BLVD., SUITE 201
                          BRENTWOOD, TN  37027

To the Partners
U.S. Realty Income Partners L.P.
102 Woodmont Blvd., Suite 410
Nashville, TN  37205

We have compiled the accompanying balance sheet of U.S. Realty Income
Partners L.P. (a limited partnership) as of September 30, 1995 and the
related statements of operations, partnership equity, and cash flows for
the three months and nine months then ended, in accordance with Statements
on Standards for Accounting and Review Services issued by the American
Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements
information that is the representation of management.  We have not audited
or reviewed the accompanying financial statements and, accordingly, do not
express an opinion or any other form of assurance on them.

We are not considered to be independent with respect to U.S. Realty Income
Partnerships L.P. according to Securities and Exchange Commission
regulations.

The financial statements for the year ended December 31, 1994, were
audited by other accountants, and they expressed an unqualified opinion on
them in their report dated March 15, 1995, but they have not performed any
auditing procedures since that date.

October 30, 1995

Certified Public Accountants
U.S. REALTY INCOME PARTNERS L.P.

                              (A LIMITED PARTNERSHIP)

                             BALANCE SHEETS

                                           Unaudited           Audited
                                         September 30,       December 31, 
                                             1995               1994    

                  ASSETS

CASH                                      $  166,472        $  165,281

TENANT RECEIVABLES                             3,848             5,879

PROPERTY AND IMPROVEMENTS, net of
  accumulated depreciation of         
  $1,075,005 and $958,434                  4,234,922         4,351,493

INVESTMENT IN JOINT VENTURE                    1,000             1,000

OTHER ASSETS                                 280,076           299,587

     TOTAL ASSETS                         $4,686,318        $4,823,240

       LIABILITIES AND PARTNERSHIP EQUITY

ACCOUNTS PAYABLE                          $    7,843        $    1,560

ACCRUED EXPENSES                              66,504           114,438

NOTES PAYABLE                              3,652,600         3,681,141

     TOTAL LIABILITIES                     3,726,947         3,797,139

MINORITY PARTNER'S INTEREST IN JOINT
  VENTURE                                (   133,228)      (   136,399)

PARTNERSHIP EQUITY                         1,092,599         1,162,500

     TOTAL PARTNERSHIP EQUITY                959,371         1,026,101

  TOTAL LIABILITIES & PARTNERSHIP EQUITY  $4,686,318        $4,823,240
U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                    STATEMENTS OF PARTNERSHIP EQUITY

Period from January 1, 1994 to September 30, 1995

                                      Limited     General
                                     Partners     Partner       Total

Distributive share of 
  net earnings                         95%           5%          100%    

Balance at January 1, 1994        $1,421,694    ($173,992)   $1,247,702

Net loss                         (    80,942)   (   4,260)  (    85,202)

Balance at December 31, 1994       1,340,752    ( 178,252)    1,162,500

Net loss                         (    66,406)   (   3,495)  (    69,901)

Balance at September 30, 1995     $1,274,346    ($181,747)  ($1,092,599
U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                        STATEMENTS OF OPERATIONS

For the Three Months and Six Months Ended
September 30, 1995 and 1994

                      Unaudited    Unaudited    Unaudited    Unaudited
                      3 Months     3 Months     9 Months     9 Months
                        1995         1994         1995         1994    
                        
Revenues
  Rental income        $ 140,465    $ 144,999    $ 468,268    $ 448,975
  CAM reimbursements      19,910       23,083       62,391       75,036
  Miscellaneous               63          198          254          427
  Interest income          1,838          526        4,518        1,244

                         162,276      168,806      535,431      525,682

Expenses
  Interest                91,477       92,403      275,146      277,854
  Professional fees        6,053        5,950       23,769       20,798
  Depreciation            38,857       38,852      116,571      116,555
  Amortization             6,113        6,759       19,238       20,277
  Property taxes          17,012       17,012       51,035       51,035
  Leasing & admin.        22,563       12,855       53,194       44,789
  Management fees          7,824        6,840       22,239       19,816
  Repairs                 10,019        7,327       26,153       22,358
  Insurance                4,700        4,569        4,700        4,569

                         204,618      192,567      592,045      578,051

Net Loss Before Minority
Partner's Share of Loss(  42,342)   (  23,761)   (  56,614)   (  52,369)

Minority Partner's Interest
in Share of Loss           5,168        1,668    (   3,171)   (     715)

Loss From Operations   (  37,174)   (  22,093)   (  59,785)   (  53,084)

Provision for Loss in
Investment in JV       (   1,225)   (   6,063)   (  10,116)   (  19,810)

Net Loss               ($ 38,399)   ($ 28,156)   ($ 69,901)   ($ 72,894)

Net Loss per Unit      ($   7.51)   ($   5.51)   ($  13.67)   ($  14.25)

Weighted Average
Number of Units            4,858        4,858        4,858        4,858

                                               

                    U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                        STATEMENTS OF CASH FLOWS
  
                                           
                                            Unaudited Nine Months Ending
                                                    September 30,
                                                 1995           1994    

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                           ($ 69,901)     ($ 72,894)
  Adjustments to reconcile net income (loss)
    to net cash provided by (used in) operating 
    activities:                                 
    Minority partner's interest in net loss
        of consolidated partnership               3,171            715
      Depreciation                              116,571        116,555
      Amortization                               19,238         20,277
      Decrease (increase) in:
        Tenant receivables                        2,031     (    2,271)
        Other assets                                272              0
      Increase (decrease) in:
        Accounts payable                          6,283          1,853 
        Professional Fees Payable             (  30,921)    (    8,419)
        Tenant Deposits                               0     (    1,117)
        Accrued expenses                      (  17,012)    (   17,012)
NET CASH PROVIDED (USED) BY OPERATING
    ACTIVITIES                                   29,732         37,687 

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property and improvements               0     (      935)
  NET CASH PROVIDED BY INVESTING ACTIVITIES           0     (      935)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Payments on mortgage note                   (  28,541)    (   25,833)
  NET CASH PROVIDED BY FINANCING ACTIVITIES   (  28,541)    (   25,833)
                                    
NET INCREASE (DECREASE) IN CASH                   1,191     (   10,919)
  
CASH AT BEGINNING OF YEAR                       165,281        118,781

CASH AT END OF PERIOD                         $ 166,472      $ 129,700
 
SUPPLEMENTAL DISCLOSURES:

  INTEREST PAID                               $ 275,146      $ 277,854
U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                           September 30, 1995

A.  ACCOUNTING POLICIES

    Refer to the Partnership's annual financial statements for the year
ended December 31, 1994 for a description of the accounting policies which
have been continued without change.  Also, refer to the footnotes of these
annual statements for additional details of the Partnership's financial
condition.  The details in those notes have not significantly changed
except as a result of normal transactions in the interim.  In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary have been included.  Operating results are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1995.

B.  INVESTMENT IN JOINT VENTURES

    The Partnership had a 50% interest in DR/US West End General
Partnership, a joint venture formed to own and operate a commercial office
building in Nashville, Tennessee.  The Company's initial investment of
$900,000 in the general partner joint venture was made on November 1,
1988.  Effective December 31, 1991, the Partnership adopted the
liquidation method of accounting for its investment in the joint venture.
Accordingly, the basis has been held at $1,000 since December 31, 1991.

Effective August 1995, the joint venture contributed all assets and
liabilities to a new limited liability company, Prudential/Daniel Office
Venture, LLC in return for a 3.9% equity interest.  See "Management
Discussion" for a more comprehensive description of this transaction.
U.S. REALTY INCOME PARTNERS L.P.

                         (A LIMITED PARTNERSHIP)

                      NOTES TO FINANCIAL STATEMENTS

                                Unaudited
                           September 30, 1995

                                continued

B.  TRANSACTIONS WITH AFFILIATES

    Fees and other costs and expense paid to the general partner or its
affiliates were as follows:
                                       
                                Nine Months Ended       Year Ended       
                                  September 30,         December 31,
                                     1995                  1994    
   
   Administrative expenses          $ 67,000            $ 36,000

      In 1995, the Partnership paid $40,000 in deferred payments in
addition to normal recurring charges.

      The Partnership believes the amounts paid to affiliates are
representative of amounts which would have been paid to independent
parties for similar services.
PART I - FINANCIAL INFORMATION
                                continued

ITEM 2.  Management's Discussion and Analysis of Financial Condition  and
Results of Operations  

Liquidity and Capital Resources
         
         At December 31, 1994, the partnership had $165,281 in cash and
cash equivalents.  This represents 3.40% of capital raised.  At September
30, 1995, the Partnership had $166,472 in cash and cash equivalents.  This
represents 3.43% of capital raised.  The Partnership had established a
working capital reserve of 5% of the gross proceeds of the offering. 
After May 15, 1990, the Partnership's Prospectus provided that the working
capital reserve could be reduced to 3% of capital raised depending upon
the Partnership's experience with its properties.  The working capital was
reduced to allow the Partnership to pay costs associated with the DR/US
refinancing.  In the event such reserves are insufficient to satisfy
unanticipated costs, the Partnership will be required to borrow additional
funds to meet such costs.  The General Partner does not anticipate having
to borrow for working capital reserves in 1995.

          The General Partner has deemed it advisable not to make any cash
distributions since May 1990.  The General Partner does not expect to make
any cash distributions in 1995.

                                    
Bellevue

        The Bellevue property was 100% leased at December 31, 1994 and
September 30, 1995.  Lease rents from the tenants amounts to $46,822 per
occupancy month.  In addition, the tenants pay common area maintenance
charges of $6,636 per month for a total of $53,458 per month.  

       On February 1, 1989, the Joint Venture obtained a $3,800,000 first
mortgage loan on this property from an unaffiliated lender.  The mortgage
bears interest at a rate of 10% per annum and required monthly
installments of interest only through February 1, 1991.   Monthly debt
service was $31,667 until March 1991 at which time monthly installments of
principal and interest rose to $33,743.  The Joint Venture has paid debt
service on a current basis.

In the first quarter of 1996, the first mortgage will become due. 
Negotiations have begun to refinance this indebtedness.  The results of
our efforts will be communicated on a timely basis.
DR/US WEST END
      
      After many months of negotiations with Prudential Life Insurance
Company, an agreement was reached in early August to form a limited
liability company known as Prudential/Daniel Office Venture, LLC.

      Assets of the new company are:  1) The 107,000 square feet 3310
Office Building located in Nashville, Tennessee, 2) The 108,113 square
feet Somerset Park Business Center, a six story office building located in
Raleigh, North Carolina and, 3) Somerset Park, four two story office
buildings totaling 207,326 square feet, also located in Raleigh, North
Carolina.

      The total value of the properties is $34,925,000 with a value of
$9,531,000 for the 3310 Office Building, $8,458,000 for the Somerset
Business Center and $16,936,000 for Somerset Park.

      The capital positions for each venture is $31,432,500 for
Prudential, $1,361,445 for U.S. Realty Income Partners for their interest
in the 3310 Office Building, $355,600 for Daniel's position in the 3310
Office Building and $1,775,455 for Daniel's interest in the Somerset
Buildings.

      Prudential's capital contribution of $31,432,000 included the payoff
of $7,537,955 of debt on the 3310 Office Building, plus $120,000 repair
escrow for a new roof.  The remainder of the money purchased Metropolitan
Life Insurance's interest in the Raleigh properties, payoff of debt on the
properties, and transaction costs including due diligence, closing costs,
and fees for professional services (legal and accounting) totaling 1.5% of
the transaction.

      By Prudential paying off all debt on the properties, cash flow will
be available to the investors in 1996.  In addition, monies previously
used to pay PNC bank from Bellevue Plaza will now become available for
distribution.  Plans call for a distribution one time a year to keep the
administrative and postage costs to a minimum.

      The decision to join Prudential and contribute the 3310 Office
Building property to the venture was made taking into consideration the
following:

      A.    The South Trust Bank first mortgage on 3310 Office Building
            matures in April, 1997.

      B.    Gresham and Smith's lease expires eighteen months after the
            loan is due.  They lease approximately 47% of the building.

      C.    All existing cash flow between now and the year 2,000 would
            have to be used to pay debt and set up reserves either to
            replace Gresham and Smith and/or make tenant improvements.  Up
            to $1,200,000 is projected to be required when new tenants are
            found.

      The alternatives considered were:

      A.    Refinance:  With Gresham and Smith's lease ending in 1998, no
            lender wanted to make a new loan with this uncertainty. 
            Gresham and Smith would not commit to extend their lease at
            this time.  Also, if a loan could be procured, it would not be
            of sufficient amount to pay off all existing debt.

      B.    Sell the property:  The mortgage problem prevented a sale to
            potential buyers.  Once a cash buyer (Prudential) was located,
            the problem of the mortgages went away leaving only the
            Gresham and Smith lease problem that does not have to be
            solved until 1998.

      First and foremost, conservation of the investors capital has been
the goal of your General Partners.  You will remember that in 1992, we
were able to save the 3310 Office Building when the building was put into
bankruptcy.  By doing this we were able to reduce the outstanding first
mortgage from $12 million to $7.5 million including a second mortgage with
PNC Bank.  That transaction enabled us to bring stability to the
partnership and preserve our asset while reducing the indebtedness.

      By making our new agreement with Prudential, we have accomplished
the following:

      A.    Eliminated the mortgage problem by paying off all debt.

      B.    Eliminated most of the risk involving the Gresham and Smith
            lease.

      C.    Strengthen our position by having a new partner, Prudential,
            who has deep pockets.

      D.    Free up money now being used for debt service from Bellevue
            Plaza that can be used for distribution to partners.

      E.    Spread the risk to three buildings and two cities from one
            building in one city.

      F.    Accomplished the above with no new tax to be paid by the
            partners of U.S. Realty Income Partners.
PART I - FINANCIAL INFORMATION
                                continued

          Results of Operations

              The Partnership holds joint venture interests in two joint
ventures, Bellevue Plaza Partners (66 2/3%) and DR/US West End General
Partnership (50%).  The operational results of the Partnership for the
nine months ending September 30, 1995 are summarized below.

                            Bellevue     Partnership          Total

Revenues                  $533,695        $  1,736          $535,431  

Operating expenses         124,645          66,561           191,206
Interest                   275,146            -              275,146
Depreciation & amort.      124,392          11,417           135,809

                           524,183          77,978           602,161

Net income (loss)            9,512       (  76,242)        (  66,730)

Partnership share          66 2/3%            50%              100%

Partnership net income
  (loss)                   $  6,341      ($ 76,242)        ($ 69,901)
Partnership Oper. cash        
  flow                     $ 94,557      ($ 64,825)        ($ 29,732)

          Operational results for the comparable nine month period ended
September 30, 1994 were:

                           Bellevue      Partnership          Total 

Revenues                  $525,482        $    200          $525,682
Operating expenses         116,471          66,704           183,175
Interest                   277,854            -              277,854
Depreciation & amort.      129,011           7,821           136,832
                           523,336          74,525           597,861

Net loss                     2,146       (  74,325)        (  72,179)

Partnership share          66 2/3%            50%              100%

Partnership net inc.  
(loss) from oper.         $  1,431       ($ 74,325)        ($ 72,894)

Partnership oper-      
  ating cash flow         $104,191       ($ 66,504)         $ 37,687

         The Partnership utilized the proceeds of the offering to acquire,
operate and hold for investment existing income producing commercial real
estate properties.  Since the proceeds of the offering were less than the
maximum amount the Partnership was unable to diversify its investments to
the extent initially desired.
PART II - OTHER INFORMATION

ITEM 1.    Legal Proceedings

               None.

ITEM 2.    Changes in Securities

               None.

ITEM 3.    Default Upon Senior Securities

               None.

ITEM 4.    Submission of Matters to a Vote of Security Holders
 
               None.

ITEM 5.    Other Information
          
               None.

ITEM 6.    Exhibits and Reports on Form 8-K

               1.  Exhibits

                     None.
                                               
               2.  Form 8-K.

                     None.

                            

                               SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) 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.

                                 U.S. REALTY INCOME PARTNERS L.P.
                                 By:  Vanderbilt Realty Joint Venture,
                                      the General Partner

                                 By:  Vanderbilt Realty Associates, Inc.
                                      its Managing General Partner

                                 By:      Robert Bond Miller             
                                      Robert Bond Miller
                                      President, Director, Chief Executive 
                                      Officer, Chief Financial Officer and
                                      Chief Accounting Officer

November 8, 1995