UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION

                   Washington, D.C. 20549


                          FORM 8-K


                       CURRENT REPORT

             PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES AND EXCHANGE ACT OF 1934


  Date of Report (Date of Earliest Event Reported)  May 10, 2004


          AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
    (Exact Name of Registrant as Specified in its Charter)

                       State of Minnesota
       (State or other Jurisdiction of Incorporation or
                        Organization)




            0-18289                    41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)


    30 East 7th Street, Suite 1300, St. Paul, Minnesota, 55101
              (Address of Principal Executive Offices)


                         (651) 227-7333
     (Registrant's telephone number, including area code)


    (Former name or former address, if changed since last
                           report)

Item 2.   Acquisition or Disposition of Assets.

       On  May  10,  2004, the Partnership purchased  a  50%
interest  in an Eckerd drug store in Auburn, New  York  from
Grant Ave. & Standard Ave. Development, LLC.  The total cash
purchase  price  of the land and building was  approximately
$4,487,900.   The  remaining interest in  the  property  was
purchased by AEI Net Lease Income & Growth Fund XIX  Limited
Partnership, an affiliate of the Partnership.  Grant Ave.  &
Standard  Ave. Development, LLC is not affiliated  with  the
Partnership.

       The  cash, used in purchasing the property, was  from
the proceeds of sale of properties.

Item 7. Financial Statements and Exhibits.

        (a)  Financial statements of businesses acquired - Not
             Applicable.

        (b)  On  May 10, 2004, the Partnership purchased its
             50%  interest  in the property for  $2,243,950.
             The  property was acquired with cash which  was
             provided  from proceeds of sale of  properties.
             A  limited  number of proforma adjustments  are
             required  to  illustrate  the  effects  of  the
             transaction  on  the balance sheet  and  income
             statement.      The     following     narrative
             description  is  furnished  in  lieu   of   the
             proforma statements:

             Assuming  the  Partnership  had  acquired   the
             property  on January 1, 2003, the Partnership's
             Investments   in   Real   Estate   would   have
             increased by $2,243,950 and its Current  Assets
             (cash) would have decreased by $2,243,950.

             The  Rental  Income  for the Partnership  would
             have increased from $880,353 to $1,065,106  for
             the  year  ended  December 31,  2003  and  from
             $280,851  to  $327,039  for  the  three  months
             ended  March  31,  2004 if the Partnership  had
             owned the property during the periods.

             Depreciation  Expense would have  increased  by
             $44,879   and  $11,220  for  the   year   ended
             December  31,  2003 and the three months  ended
             March 31, 2004, respectively.

             The  net  effect of these proforma  adjustments
             would  have caused Net Income to increase  from
             $3,765,716  to  $3,905,590 and from  $1,480,691
             to  $1,515,659,  which would have  resulted  in
             Net  Income  of $196.83 and $77.15 per  Limited
             Partnership  Unit  outstanding  for  the   year
             ended  December 31, 2003 and the  three  months
             ended March 31, 2004, respectively.

        (c)  Exhibits

               Exhibit 10.1 - Assignment   of       Purchase
                              Agreement dated January 9,2004
                              between   the Partnership, AEI
                              Net   Lease Income  &   Growth
                              Fund  XIX Limited  Partnership
                              and AEI Fund  Management, Inc.
                              relating to   the  Property at
                              157  Grant  Avenue,    Auburn,
                              New    York (incorporated   by
                              reference  to Exhibit 10.25 of
                              Form  10-KSB  filed  March 19,
                              2004).

               Exhibit 10.2 - Assignment  and Assumption  of
                              Lease  dated  May 10,     2004
                              between  the  Partnership, AEI
                              Net   Lease Income   &  Growth
                              Fund  XIX Limited  Partnership
                              and  Grant Ave.   &   Standard
                              Ave. Development, LLC relating
                              to the  Property at  157 Grant
                              Avenue, Auburn, New York.


                         SIGNATURES

     Pursuant to 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 hereunto  duly
authorized.

                              AEI REAL ESTATE FUND XVIII
                              LIMITED PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                              Its:  Managing  General Partner


Date:  May 14, 2004           /s/ Patrick W Keene
                              By: Patrick W. Keene
                              Its: Chief Financial Officer
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UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION

                   Washington, D.C. 20549

                          FORM 8-K

                       CURRENT REPORT

             PURSUANT TO SECTION 13 OR 15(d) OF
           THE SECURITIES AND EXCHANGE ACT OF 1934

  Date of Report (Date of Earliest Event Reported)  May 10, 2004

          AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP
    (Exact Name of Registrant as Specified in its Charter)

                       State of Minnesota
       (State or other Jurisdiction of Incorporation or
                        Organization)

            0-18289                    41-1622463
   (Commission File Number)          (I.R.S. Employer
                                   Identification No.)

    30 East 7th Street, Suite 1300, St. Paul, Minnesota, 55101
              (Address of Principal Executive Offices)

                         (651) 227-7333
     (Registrant's telephone number, including area code)

    (Former name or former address, if changed since last
                           report)

Item 2.   Acquisition or Disposition of Assets.

       On  May  10,  2004, the Partnership purchased  a  50%
interest  in an Eckerd drug store in Auburn, New  York  from
Grant Ave. & Standard Ave. Development, LLC.  The total cash
purchase  price  of the land and building was  approximately
$4,487,900.   The  remaining interest in  the  property  was
purchased by AEI Net Lease Income & Growth Fund XIX  Limited
Partnership, an affiliate of the Partnership.  Grant Ave.  &
Standard  Ave. Development, LLC is not affiliated  with  the
Partnership.

       The  cash, used in purchasing the property, was  from
the proceeds of sale of properties.

Item 7. Financial Statements and Exhibits.

        (a)  Financial statements of businesses acquired - Not
             Applicable.

        (b)  On  May 10, 2004, the Partnership purchased its
             50%  interest  in the property for  $2,243,950.
             The  property was acquired with cash which  was
             provided  from proceeds of sale of  properties.
             A  limited  number of proforma adjustments  are
             required  to  illustrate  the  effects  of  the
             transaction  on  the balance sheet  and  income
             statement.      The     following     narrative
             description  is  furnished  in  lieu   of   the
             proforma statements:

             Assuming  the  Partnership  had  acquired   the
             property  on January 1, 2003, the Partnership's
             Investments   in   Real   Estate   would   have
             increased by $2,243,950 and its Current  Assets
             (cash) would have decreased by $2,243,950.

             The  Rental  Income  for the Partnership  would
             have increased from $880,353 to $1,065,106  for
             the  year  ended  December 31,  2003  and  from
             $280,851  to  $327,039  for  the  three  months
             ended  March  31,  2004 if the Partnership  had
             owned the property during the periods.

             Depreciation  Expense would have  increased  by
             $44,879   and  $11,220  for  the   year   ended
             December  31,  2003 and the three months  ended
             March 31, 2004, respectively.

             The  net  effect of these proforma  adjustments
             would  have caused Net Income to increase  from
             $3,765,716  to  $3,905,590 and from  $1,480,691
             to  $1,515,659,  which would have  resulted  in
             Net  Income  of $196.83 and $77.15 per  Limited
             Partnership  Unit  outstanding  for  the   year
             ended  December 31, 2003 and the  three  months
             ended March 31, 2004, respectively.

        (c)  Exhibits

               Exhibit 10.1 - Assignment   of       Purchase
                              Agreement dated January 9,2004
                              between   the Partnership, AEI
                              Net   Lease Income  &   Growth
                              Fund  XIX Limited  Partnership
                              and AEI Fund  Management, Inc.
                              relating to   the  Property at
                              157  Grant  Avenue,    Auburn,
                              New    York (incorporated   by
                              reference  to Exhibit 10.25 of
                              Form  10-KSB  filed  March 19,
                              2004).

               Exhibit 10.2 - Assignment  and Assumption  of
                              Lease  dated  May 10,     2004
                              between  the  Partnership, AEI
                              Net   Lease Income   &  Growth
                              Fund  XIX Limited  Partnership
                              and  Grant Ave.   &   Standard
                              Ave. Development, LLC relating
                              to the  Property at  157 Grant
                              Avenue, Auburn, New York.

                         SIGNATURES

     Pursuant to 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 hereunto  duly
authorized.

                              AEI REAL ESTATE FUND XVIII
                              LIMITED PARTNERSHIP

                              By: AEI Fund Management XVIII, Inc.
                              Its:  Managing  General Partner

Date:  May 14, 2004           /s/ Patrick W Keene
                              By: Patrick W. Keene
                              Its: Chief Financial Officer