Exhibit 15.1

                October 21, 1997



                FM Properties Inc.
                1615 Poydras St.
                New Orleans, LA 70112

                Gentlemen:

                We are aware that FM Properties Inc. has incorporated by
                reference in its Registration Statements  (File Nos. 33-
                78798 and 333-31059) its Form 10-Q for the quarter ended
                September  30, 1997,  which  includes  our report  dated
                October  21,   1997  covering   the  unaudited   interim
                financial information  contained therein.   Pursuant  to
                Regulation C of  the Securities Act  of 1933  (the Act),
                this report is not considered a part of the registration
                statements prepared or certified by our firm or a report
                prepared or certified by our firm  within the meaning of
                Sections 7 and 11 of the Act.

                Very truly yours,

                /s/Arthur Andersen LLP

                Arthur Andersen LLP