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, 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  May  10, 1996, AEI Real Estate Fund XVIII Limited
Partnership sold a Taco Cabana restaurant in New  Braunfels,
Texas  for $1,053,000.  The property was sold to the  Givens
Family  Trust, which is not affiliated with the Partnership.
The  Partnership received net sale proceeds of approximately
$986,000,  which  resulted in a net  gain  of  approximately
$275,655.

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)  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 sold the property
               on   March 31,    1996,    the    Partnership's
               Investments  in  Real  Estate  and  Accumulated
               Depreciation   would  have  been   reduced   by
               $784,045  and  $73,700, respectively,  and  its
               Current   Assets   (cash)   would   have   been
               increased by $986,000.  This transaction  would
               have   caused  the  Total  Assets   and   Total
               Liabilities  and Partners' Capital to  increase
               from $16,762,022 to $17,037,677.
          
               At   March  31,  1996,  the  Partnership's  Net
               Income  would  have increased by  approximately
               $275,655  due  to  the gain on  sale,  and  Net
               Income Per Limited Partnership Unit would  have
               increased from $10.24 to $22.60.
           
          (c)  Exhibits
          
                Exhibit  10.1 - Purchase  Agreement
                         dated  May  3,  1996  between   the
                         Partnership  and the Givens  Family
                         Trust  relating to the property  at
                         811   I-H   North,  New  Braunfels,
                         Texas.


                         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 21, 1996            /s/ Mark E Larson
                           By:     Mark E. Larson
                                   Its Chief Financial Officer
[{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 4784}]
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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, 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  May  10, 1996, AEI Real Estate Fund XVIII Limited
Partnership sold a Taco Cabana restaurant in New  Braunfels,
Texas  for $1,053,000.  The property was sold to the  Givens
Family  Trust, which is not affiliated with the Partnership.
The  Partnership received net sale proceeds of approximately
$986,000,  which  resulted in a net  gain  of  approximately
$275,655.

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)  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 sold the property
               on   March 31,    1996,    the    Partnership's
               Investments  in  Real  Estate  and  Accumulated
               Depreciation   would  have  been   reduced   by
               $784,045  and  $73,700, respectively,  and  its
               Current   Assets   (cash)   would   have   been
               increased by $986,000.  This transaction  would
               have   caused  the  Total  Assets   and   Total
               Liabilities  and Partners' Capital to  increase
               from $16,762,022 to $17,037,677.
          
               At   March  31,  1996,  the  Partnership's  Net
               Income  would  have increased by  approximately
               $275,655  due  to  the gain on  sale,  and  Net
               Income Per Limited Partnership Unit would  have
               increased from $10.24 to $22.60.
           
          (c)  Exhibits
          
                Exhibit  10.1 - Purchase  Agreement
                         dated  May  3,  1996  between   the
                         Partnership  and the Givens  Family
                         Trust  relating to the property  at
                         811   I-H   North,  New  Braunfels,
                         Texas.

                         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 21, 1996            /s/ Mark E Larson
                           By:     Mark E. Larson
                                   Its Chief Financial Officer