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) April 10, 1996
                              
                              
       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.)
                              
                              
   1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)
                              
                              
                          (612) 227-7333
     (Registrant's telephone number, including area code)
                              
                              
  (Former name or former address, if changed since last report)
                              

Item 1.   Changes in Control of Registrant.

          Not Applicable.

Item 2.   Acquisition or Disposition of Assets.

       On April 10, 1996, the Partnership purchased an 85.0%
interest in a newly constructed Tractor Supply Company store
in Bristol, Virginia from Tractor Supply Company.  The total
cash   purchase   price  of  the  land  and   building   was
approximately $1,302,540.  The remaining interest  is  owned
by  Robert P. Johnson, the Partnership's Individual  General
Partner.   Tractor  Supply Company store is  not  affiliated
with  the  Partnership.  The cash, used  in  purchasing  the
property,  was from the proceeds of the sale of  properties,
which occurred in 1995.

Item 3.   Bankruptcy or Receivership.

          Not Applicable.

Item 4.   Changes in Registrant's Certifying Accountant.

          Not Applicable.

Item 5.   Other Events.

          None.

Item 6.   Resignation of Registrant's Directors.

          Not Applicable.

Item 7.   Financial Statements and Exhibits.

             (a)  Financial statements of businesses acquired.  -
                  Not Applicable. Property was newly constructed.
          
             (b)  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  purchased  the
                  property     on    December31,    1995,     the
                  Partnership's Investments in Real Estate  would
                  have  been  increased  by  $1,107,159  and  its
                  Current  Assets (cash) would have been  reduced
                  by $1,107,159.
          
                  The  Partnership's estimated annual income from
                  the  property  is $89,455 based  on  the  first
                  full  year  of  rental income, after  deducting
                  depreciation.   The increase in  annual  income
                  would   be   offset   by  estimated   loss   of
                  Investment  Income (interest) of  approximately
                  $58,100.
          
             (c)  Exhibits
          
                    Exhibit 10.1 -  Sale and Leaseback Financing
                                    Commitment Agreement dated
                                    September  21,   1995   and
                                    Amendment to Sale and Leaseback
                                    Financing Commitment Agreement
                                    dated October 18, 1995 between 
                                    AEI Fund Management, Inc. and 
                                    Tractor Supply Company, Inc.  
                                    relating  to the property at
                                    Old Airport  Road and I-81,
                                    Bristol, Virginia (incorporated 
                                    by reference to Exhibit 10.1 of
                                    Form 10-QSB filed with the 
                                    Commission on November 2, 1995).
          
                    Exhibit 10.2 -  Net Lease Agreement dated
                                    April  10, 1996 between  the
                                    Partnership, Robert P. Johnson  
                                    and Tractor Supply Company relating  
                                    to the property at Old Airport Road
                                    and I-81, Bristol, Virginia.


                         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:  April 17, 1996             /s/ Mark E. Larson
                               By: Mark E. Larson
                                   Its Chief Financial Officer
[{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 6035}]
{"company-data": {"conformed-name": "AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP", "cik": "0000840459", "assigned-sic": "6500", "irs-number": "411622463", "state-of-incorporation": "MN", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-18289", "film-number": "96549711"}, "business-address": {"street1": "1300 MINNESOTA WORLD TRADE CTR", "city": "ST PAUL", "state": "MN", "zip": "55101", "phone": "6122277333"}, "mail-address": {"street1": "1300 MINNESOTA WORLD TRADE CENTER", "street2": "30 EAST SEVENTH STREET", "city": "ST PAUL", "state": "MN", "zip": "55101"}}
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) April 10, 1996
                              
                              
       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.)
                              
                              
   1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
          (Address of Principal Executive Offices)
                              
                              
                          (612) 227-7333
     (Registrant's telephone number, including area code)
                              
                              
  (Former name or former address, if changed since last report)
                              

Item 1.   Changes in Control of Registrant.

          Not Applicable.

Item 2.   Acquisition or Disposition of Assets.

       On April 10, 1996, the Partnership purchased an 85.0%
interest in a newly constructed Tractor Supply Company store
in Bristol, Virginia from Tractor Supply Company.  The total
cash   purchase   price  of  the  land  and   building   was
approximately $1,302,540.  The remaining interest  is  owned
by  Robert P. Johnson, the Partnership's Individual  General
Partner.   Tractor  Supply Company store is  not  affiliated
with  the  Partnership.  The cash, used  in  purchasing  the
property,  was from the proceeds of the sale of  properties,
which occurred in 1995.

Item 3.   Bankruptcy or Receivership.

          Not Applicable.

Item 4.   Changes in Registrant's Certifying Accountant.

          Not Applicable.

Item 5.   Other Events.

          None.

Item 6.   Resignation of Registrant's Directors.

          Not Applicable.

Item 7.   Financial Statements and Exhibits.

             (a)  Financial statements of businesses acquired.  -
                  Not Applicable. Property was newly constructed.
          
             (b)  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  purchased  the
                  property     on    December31,    1995,     the
                  Partnership's Investments in Real Estate  would
                  have  been  increased  by  $1,107,159  and  its
                  Current  Assets (cash) would have been  reduced
                  by $1,107,159.
          
                  The  Partnership's estimated annual income from
                  the  property  is $89,455 based  on  the  first
                  full  year  of  rental income, after  deducting
                  depreciation.   The increase in  annual  income
                  would   be   offset   by  estimated   loss   of
                  Investment  Income (interest) of  approximately
                  $58,100.
          
             (c)  Exhibits
          
                    Exhibit 10.1 -  Sale and Leaseback Financing
                                    Commitment Agreement dated
                                    September  21,   1995   and
                                    Amendment to Sale and Leaseback
                                    Financing Commitment Agreement
                                    dated October 18, 1995 between 
                                    AEI Fund Management, Inc. and 
                                    Tractor Supply Company, Inc.  
                                    relating  to the property at
                                    Old Airport  Road and I-81,
                                    Bristol, Virginia (incorporated 
                                    by reference to Exhibit 10.1 of
                                    Form 10-QSB filed with the 
                                    Commission on November 2, 1995).
          
                    Exhibit 10.2 -  Net Lease Agreement dated
                                    April  10, 1996 between  the
                                    Partnership, Robert P. Johnson  
                                    and Tractor Supply Company relating  
                                    to the property at Old Airport Road
                                    and I-81, Bristol, Virginia.

                         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:  April 17, 1996             /s/ Mark E. Larson
                               By: Mark E. Larson
                                   Its Chief Financial Officer