This Sticker Supplement is dated October 6, 2006 and
updates the information about properties that is contained in the
Prospectus dated October 20, 2005 for AEI Income & Growth Fund
26, as supplemented by Supplement No. 4 dated August 23, 2006.
Since August 23, 2006, we have purchased, or our manager has
identified for our purchase, the following properties:

       Applebee's - Indianapolis, Indiana.  On September 21,
2006, for approximately $1,112,000, we purchased a 37% interest
in an existing, seasoned Applebee's restaurant in Indianapolis,
Indiana. The property is leased to the seller, Apple Indiana II
LLC, under a lease agreement with a primary term of 20 years. The
lease may be renewed by the tenant for up to four consecutive
terms of five years each. The lease requires an initial annual
rent of $81,497 for our 37% interest, which amount will increase
every five years by 7.5%. The lease is a triple net lease under
which the tenant is responsible for payment of all real estate
taxes, insurance, maintenance, repairs and operating expenses of
the property.

       The restaurant was constructed in 1997 and is a 5,230
square foot building situated on approximately 1.3 acres. The
restaurant is located at 7345 East Washington Street near the
busy intersection of routes 40 and 52. The restaurant is located
on a heavily developed commercial thoroughfare in a densely-
populated residential neighborhood on the east side of
Indianapolis. The population within a five-mile radius is
approximately 178,000, with an average household income of over
$49,000.

       On October 3, 2006, we purchased an additional 18%
interest in this property from AEI Fund Management XVII, Inc.
(AFM), an affiliate of our managers. We also expect to purchase
the remaining 45% interest in this property from AFM once we have
adequate funds from the sale of units, and provided our managers
conclude that the purchase provides adequate diversity to our
holdings. In order to facilitate our purchase of this property,
AFM purchased a 63% interest in the property for approximately
$1,893,000. The lease requires an initial annual rent of $138,765
for this interest. The price we pay will be equal to the price
paid by AFM plus the expenses incurred by it to transfer
ownership of the property to us. Those expenses are expected to
be minimal. For a property interest purchased from AFM, any
profit or loss on the interest during the period the interest is
owned by AFM will be paid or charged to us. There will be no
other benefit arising out of the transaction to our managers or
their affiliates apart from compensation otherwise permitted by
our operating agreement.

       Apple Indiana II LLC is a subsidiary of Apple American
Group LLC (AAG), which has guaranteed the lease. As of September
2006, AAG operated approximately 130 Applebee's restaurants in
eight states and was the largest franchisee in the Applebee's
system. For the fiscal year ended December 25, 2005, AAG reported
a net worth of approximately $38.9 million, earnings before
interest, taxes, depreciation and amortization of approximately
$21.3 million, and a net loss, after one-time special charges
totaling approximately $10 million, of $0.8 million. AAG is a
privately held company.

       Applebee's - Crawfordsville, Indiana. This Applebee's
restaurant has been identified as a possible acquisition for AEI
Fund 26. On September 21, 2006, for approximately $3,045,000, AFM
purchased this existing, seasoned Applebee's restaurant in
Crawfordsville, Indiana. Based upon the availability of
sufficient additional subscription proceeds, we anticipate
purchasing this property in whole or in part from AFM. Whether we
purchase the entire property or only a partial interest in it
will depend upon several factors including the amount of
subscription proceeds we raise, the time it takes to raise the
proceeds, the diversification of our property portfolio, and the
availability of other properties we may acquire, among other
factors.

       If we do purchase this property, the price we pay will be
equal to the price paid by AFM plus the expenses incurred by it
to transfer ownership of the property to us. Those expenses are
expected to be minimal. For property purchased from AFM, any
profit or loss on the property during the period the property is
owned by AFM will be paid or charged to us. There will be no
other benefit arising out of the transaction to our managers or
their affiliates apart from compensation otherwise permitted by
our operating agreement.

       This property is also leased to the seller, Apple Indiana
II LLC, under a lease agreement with a primary term of 20 years.
The lease may be renewed by the tenant for up to four consecutive
terms of five years each. The lease requires an initial annual
rent of $223,222, which amount will increase every five years by
7.5%. The lease is a triple net lease that is guaranteed by AAG.

       The restaurant was constructed in 1996 and is a 5,260
square foot building situated on approximately 1.9 acres. The
restaurant is located at 1516 South Washington Street in
Crawfordsville, which is approximately 45 miles northwest of
Indianapolis. The restaurant is located at the center of a major
shopping district that includes Target, Wal-Mart, Staples, and a
Kroger supermarket. The population within a five-mile radius is
approximately 22,000, with an average household income of over
$51,000.