UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21631

RMK ADVANTAGE INCOME FUND, INC.

(Exact name of registrant as specified in Charter)

THREE WORLD FINANCIAL CENTER

200 VESEY STREET, 10TH FLOOR

NEW YORK, NY 10281

(Address of principal executive offices) (Zip code)

JOHN J. FEENEY, JR., PRESIDENT

THREE WORLD FINANCIAL CENTER

200 VESEY STREET, 10TH FLOOR

NEW YORK, NEW YORK 10281-1010

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-800-HYPERION

Date of fiscal year end: March 31, 2008

Date of reporting period: June 30, 2008

Item 1. Schedule of Investments.

RMK ADVANTAGE INCOME FUND, INC.

Portfolio of Investments

June 30, 2008 (Unaudited)

Principal Amount/ Notional Amount/ Shares	Description	Value ‡
ASSET-BACKED SECURITIES - INVESTMENT GRADE* - 15.4%
	Collateralized Debt Obligations (“CDO”) - 8.5%
3,000,000	CDO Repack SPC Ltd. 2006-BRGA, Zero Coupon Bond 12/5/51 #~	$	300
1,000,000	Kodiak CDO 2007-2A E, 6.020% 11/7/42 †#		20,000
1,987,793	Millstone III-A CDO Ltd., Zero Coupon Bond 7/5/46 #~		199
1,497,209	Preferred Term Securities XXVIII, Ltd., 4.526% 3/22/38 †#		898,326
8,000,000	Steers Delaware Business Trust 2007-A, 5.491% 6/20/18 †#		6,380,000
4,385,259	Witherspoon CDO Funding Ltd. 2004-1A, 7.500% 9/15/39 #		43,853
			7,342,678
	Home Equity Loans (Non-High Loan-To-Value) - 4.2%
1,710,000	Irwin Home Equity Corp. 2005-C 2M3, 3.893% 4/25/30 #		748,980
2,253,166	Residential Funding Mortgage Securities II 2007-HI1 A1, 2.613% 3/25/37#		2,061,778
1,040,000	Terwin Mortgage Trust 2006-2HGS A2, 4.500% 3/25/37 †		130,761
20,739,991	United Capital Markets, Inc. 2003-A, 2.300% 11/8/27 interest-only strips †#		701,012
			3,642,531
	Manufactured Housing Loans - 2.7%
3,124,801	Mid-State Trust 2005-1 B, 7.758% 1/15/40		2,349,285
Total Asset-Backed Securities - Investment Grade* (cost $26,648,881)			13,334,494
ASSET-BACKED SECURITIES - BELOW INVESTMENT GRADE OR UNRATED* - 20.4%
	Certificate-Backed Obligations (“CBO”) - 0.0%
2,420,547	Helios Series I Multi-Asset CBO, Ltd. IA C, 5.904% 12/13/36 †#		24,205
3,804,831	MKP CBO I Ltd., 4A CS 2.000% 7/12/40 †#		19,024
			43,229
	Collateralized Debt Obligations (“CDO”) - 13.3%
2,000,000	801 Grand CDO 2006-1 LLC, 8.803% 9/20/16 †#		940,000
2,000,000	Aardvark Asset-Backed Securities CDO 2007-1A, 7/6/47 in default #~		200
4,000,000	Acacia CDO, Ltd. 10A, 9/7/46 †#~		400
4,000,000	Aladdin CDO I Ltd. 2006-3A, 7.803% 10/31/13 †#		280,000
380,482	Attentus CDO Ltd. 2006-2A E2, 8.395% 10/9/41 #		38
2,157,510	Attentus CDO Ltd. 2006-2A F1, 7.710% 10/9/41 †#		216
982,088	Attentus CDO Ltd. 2006-2A F2, 10.295% 10/9/41 #		98
3,144,684	Attentus CDO Ltd. 2007-3A F2, 9.532% 10/11/42 †#		314
3,115,980	Broderick CDO Ltd. 2007-3A D, 9.422% 12/6/50 †#		312
1,000,000	Cairn Mezzanine Asset-Backed CDO PLC 2007-3A, Zero Coupon Bond 8/13/47 #~		100
5,000,000	Dillon Read CDO Ltd. 2006-1A, 11.674% 12/5/46 †#		1,050,000
4,436,523	Duane Park, 8.803% 6/27/16 †#		787,483
2,000,000	Gulf Stream Atlantic CDO Ltd. 2007-1A, Zero Coupon Bond 7/13/47 †#~		200
2,000,000	IXIS ABS 1 Ltd., Zero Coupon Bond 12/12/46 †#~		200
13,000,000	Kenmore Street Synthetic CDO 2006-1A, 7.803% 4/30/14 †#		1,040,000
1,026,628	Knollwood CDO Ltd. 2006-2A E, 8.710% 7/13/46 †#		103
2,000,000	Knollwood CDO Ltd. 2006-2A SN, Zero Coupon Bond 7/13/46 #~		200
4,145,414	Kodiak CDO 2006-1A, 2.891% 8/7/37 †#		415
3,185,273	Kodiak CDO 2006-1A G, 6.270% 8/7/37 †#		318
4,916,823	Lancer Funding Ltd. 2007-2A A3, 7/15/47 in default †#~		492
3,000,000	Lincoln Park Referenced Link Notes 2001-1, 6.319% 7/30/31 †#		1,747,500
3,000,000	Linker Finance PLC 16A E, 5.983% 5/19/45 † #		45,000
3,117,303	Newbury Street CDO Ltd. 2007-1A D, 6.476% 3/4/53 †#		312
1,961,789	Norma CDO Ltd. 2007-1A E, 7.091% 3/11/49 †#		196
6,103,722	Palmer Square 2A CN, 3.612% 11/2/45 †#		610
2,000,000	Pasa Funding Ltd. 2007-1A D, 4/7/52 in default #~		200
2,000,000	Preferred Term Securities II, Ltd., 10.000% 5/22/33 †#		520,000
3,000,000	Preferred Term Securities XXI, Ltd., 10.000% 3/22/38 †#~		217,500
998,147	Preferred Term Securities XXI-2TR, 1.956% 3/22/38 †#		249,537
4,000,000	Preferred Term Securities XXII, Ltd., Zero Coupon Bond 9/22/36 †~		800,000
3,800,000	Preferred Term Securities XXIII, Ltd., Zero Coupon Bond 12/22/36 †~		1,643,500
3,500,000	Preferred Term Securities XXVIII, Ltd., 10.000% 3/22/38 †#		1,855,000
1,250,000	Regional Diversified Funding, Zero Coupon Bond 1/25/36 †#~		250,000
1,923,503	Sharps CDO 2006-1A D, Zero Coupon Bond 5/8/46 †#~		192
1,046,401	Squared CDO Ltd. 2007-1A C, 7.638% 5/11/57 †#		105

RMK ADVANTAGE INCOME FUND, INC.

Portfolio of Investments

June 30, 2008 (Unaudited)

Principal Amount/ Notional Amount/ Shares	Description	Value ‡
6,278,468	Taberna Preferred Funding Ltd. 2006-6A, 6.096% 12/5/36 †#	$	628
4,137,165	Taberna Preferred Funding Ltd. 2006-7A C1, 1.000% 2/5/37 †#		414
1,023,991	Tahoma CDO Ltd. 2007-2A D, 7.276% 9/15/47 †#		102
1,021,750	Trapeza CDO I LLC 2006-10A D2, 8.700% 6/6/41 †#		25,544
2,000,000	Trapeza CDO I LLC 2006-10A, Zero Coupon Bond 6/6/41 #~		10,000
2,000,000	Trapeza CDO I LLC 2006-11A, 10/10/41 #~		200
2,051,020	Trapeza CDO I LLC 2006-11A F, 10.204% 10/10/41 #		20,510
2,500,000	Tricadia CDO Ltd. 2006-5A, Zero Coupon Bond 6/19/46 †#~		250
2,000	WEBS CDO 2006-1 PS, 4/13/47 †#~		20
			11,488,409
	Collateralized Loan Obligations (“CLO”) - 3.8%
3,000	Credit Genesis CLO 2005, 6/23/10 †#~		1,950,000
3,000,000	Eirles Two Ltd. 262, 8.284% 8/3/21 #		1,320,000
			3,270,000
	Equipment Leases - 2.5%
7,594,200	Aerco Limited 1X C1, Zero Coupon Bond 7/15/23 #~		75,942
7,123,627	Aerco Limited 2A B2, Zero Coupon Bond 7/15/25 †#~		212,284
7,247,187	Aerco Limited 2A C2, Zero Coupon Bond 7/15/25 †#~		725
699,769	DVI Receivables Corp. 2001-2 A3, 3.519% 11/8/31 #		130,185
1,487,917	DVI Receivables Corp. 2001-2 A4, 4.613% 11/11/09 #		303,818
2,735,092	Guggenheim Equipment Trust 2007-1A, 11.193% 7/15/31 †#		1,441,448
			2,164,402
	Home Equity Loans (Non-High Loan-To-Value) - 0.8%
2,766,185	ACE Securities Corp. 2004-HE3 M11, 5.893% 11/25/34 #		85,752
4,593,203	Equifirst Mortgage Loan Trust 2004-3 B2, 5.893% 12/25/34 †#		507,687
340,713	Fremont Home Loan Trust 2004-4 M7, 4.203% 3/25/35		97,707
4,000,000	Meritage Asset Holdings 2005-2 N4, 7.500% 11/25/35 †#		400
1,037,297	Soundview Home Equity Loan Trust 2005-A B1, 5.483% 4/25/35 †#		8,506
1,072,402	Terwin Mortgage Trust 2005-7SL, Zero Coupon Bond 7/25/35 †#~		107
1,450,990	Terwin Mortgage Trust 2005-11SL B7, Zero Coupon Bond 11/25/36 †#~		871
4,000,000	Terwin Mortgage Trust 2005-R1, Zero Coupon Bond 12/28/36 †#~		5,000
			706,030
Total Asset-Backed Securities - Below Investment Grade or Unrated* (cost $150,588,725)			17,672,070
CORPORATE BONDS - INVESTMENT GRADE* - 3.3%
	Finance - 2.5%
3,000,000	Catlin Insurance Company Ltd., 7.249% 12/31/49 †		2,189,793
	Special Purpose Entities - 0.8%
2,000,000	Fixed Income Pass-Through Trust 2007-C JPM Class B, Zero Coupon Bond 5/15/77 †#~		660,000
Total Corporate Bonds - Investment Grade* (cost $4,872,867)			2,849,793
CORPORATE BONDS - BELOW INVESTMENT GRADE OR UNRATED* - 28.9%
	Apparel - 2.7%
3,935,000	Rafaella Apparel Group Inc., 11.250% 6/15/11		2,301,975
	Automotives - 2.0%
1,150,000	General Motors, 8.375% 7/15/33		681,375
4,000,000	Metaldyne Corp., 11.000% 6/15/12		1,080,000
			1,761,375
	Basic Materials - 0.6%
600,000	AmeriCast Technologies Inc., 11.000% 12/1/14 †		556,500
	Communications - 1.4%
1,975,000	CCH I Holdings LLC, 11.750% 5/15/14		1,204,750
	Consulting Services - 3.3%
3,700,000	MSX International Inc., 12.500% 4/1/12 †		2,849,000
	Finance - 3.1%
2,725,000	Advanta Capital Trust I, 8.990% 12/17/26		1,703,125
1,000,000	Assurance America, 10.500% 12/31/35 †#		980,000
500,000	Security Capital Assurance Ltd., 6/17/49 in default ~		2,500
			2,685,625

RMK ADVANTAGE INCOME FUND, INC.

Portfolio of Investments

June 30, 2008 (Unaudited)

Principal Amount/ Notional Amount/ Shares	Description	Value ‡
	Industrials - 1.7%
373,492	Home Products Inc., pays-in-kind 3/20/17 #~	$	36,565
2,425,000	Terphane Holding Corp., 12.500% 6/15/09 †		1,448,937
			1,485,502
	Manufacturing - 4.8%
2,120,000	JB Poindexter & Co. Inc., 8.750% 3/15/14		1,526,400
4,650,000	MAAX Corp., 6/15/12 in default ~		93,000
2,700,000	Wolverine Tube, Inc., 10.500% 4/1/09		2,511,000
			4,130,400
	Oil & Natural Gas - 1.7%
1,700,000	Seametric International, 11.625% 5/25/12 †#		1,496,000
	Paper Products - 0.9%
1,500,000	Corp Durango SAB de CV, 10.500% 10/5/17 †		791,250
	Real Estate Services - 0.4%
650,000	Realogy Corp., 12.375% 4/15/15		318,500
	Retail - 1.2%
1,507,000	Lazydays RV Center Inc., 11.750% 5/15/12		1,039,830
	Special Purpose Entities - 0.4%
731,000	Interactive Health LLC, 7.250% 4/1/11 †		292,400
	Telecommunications - 2.6%
4,175,000	Primus Telecommunications GP, 8.000% 1/15/14		1,336,000
1,250,000	Securus Technologies Inc., 11.000% 9/1/11		937,500
			2,273,500
	Tobacco - 2.1%
2,950,000	North Atlantic Trading Co., 9.250% 3/1/12		1,792,125
Total Corporate Bonds - Below Investment Grade or Unrated* ($42,119,067)			24,978,732
MORTGAGE-BACKED SECURITIES - INVESTMENT GRADE* - 5.6%
	Collateralized Mortgage Obligations - 5.6%
2,315,160	Countrywide Alternative Loan Trust 2005-49CB A5, 5.500% 11/25/35		1,866,403
4,260,775	Countrywide Alternative Loan Trust 2005-56 M4, 3.403% 11/25/35 #		464,041
611,946	Deutsche Alt-A Securities Inc. Mortgage Loan 2006-AF1 A5, 2.763% 4/25/36		231,124
5,000,000	Deutsche Mortgage Securities, Inc. 2006-RS1 N2, 4.241% 9/27/35 †#		1,431,000
2,394,173	Structured Asset Investment Loan Trust 2004-7A B, Zero Coupon Bond 8/27/34 †#~		239
5,219,000	Structured Asset Mortgage Investments Inc. 2006-AR3 1B1, 2.883% 4/25/36		889,010
Total Mortgage-Backed Securities - Investment Grade* ($16,219,108)			4,881,817
MORTGAGE-BACKED SECURITIES - BELOW INVESTMENT GRADE OR UNRATED* - 8.3%
	Collateralized Mortgage Obligations - 8.3%
1,027,439	Countrywide Alternative Loan Trust 2006-OA11 N3, 12.500% 9/25/46 † #		914,113
3,000,000	Greenwich Structured Adjustable Rate Mortgage Products 2005-3A N2, 2.000% 6/27/35 †#		1,254,300
7,279,639	Greenwich Structured Adjustable Rate Mortgage Products 2005-4A N-2, Zero Coupon Bond 7/27/45 †#~		2,748,792
1,000,000	Harborview Corp. 2006-14 N4, 8.350% 3/19/38 †#		98,130
6,000,000	Harborview Corp. 2006-14 PS, Zero Coupon Bond 12/19/36 †#~		600
2,000,000	Harborview Corp. 2006-8A N5, Zero Coupon Bond 7/21/36 †#~		29,000
3,946,080	Harborview Mortgage Loan Trust 2006-4 B11, 4.233% 5/19/47 †#		95,022
5,000,000	Long Beach Asset Holdings Corp. 2005-WL1 N4, 7.500% 6/25/45 †#		500
621,221	Long Beach Mortgage Loan Trust 2001-3 M3, 5.205% 9/25/31 #		86,971
2,000,000	Long Beach Mortgage Loan Trust 2005-2 B2, 5.233% 4/25/35 †#		50,780
2,018,908	Long Beach Mortgage Loan Trust 2005-WL2 B3, 4.983% 8/25/35 †#		11,609
2,043,149	Park Place Securities Inc. 2005-WCW1 B, Zero Coupon Bond 9/25/35 †#~		204
3,000,000	Park Place Securities Inc. 2005-WCW2 M10, 4.983% 7/25/35 #		159,300
2,000,000	Park Place Securities Inc. 2005-WHQ3 M11, 4.983% 6/25/35 #		98,000
1,000,000	Park Place Securities Inc. 2005-WHQ4, 4.983% 9/25/35 †#		27,800
3,000,939	Residential Accredit Loans Inc. 2006-Q08 M4, 3.013% 10/25/46 #		227,441
5,250,000	Residential Asset Mortgage Products Inc. 2005-RS4 B2, 5.393% 4/25/35 †#		223,125
1,000,000	Sharp SP I LLC Trust 2006-A HM3 N3, 12.500% 10/25/46 †#		869,220
2,591,000	Soundview Home Equity Loan Trust 2005-2 B3, 5.393% 7/25/35 †#		319,781
			7,214,688

RMK ADVANTAGE INCOME FUND, INC.

Portfolio of Investments

June 30, 2008 (Unaudited)

Principal Amount/ Notional Amount/ Shares	Description	Value ‡
	Residential Mortgage-Backed Securities - 0.0%
9	Harborview 2006-8, 7/22/36 †#~	$	1
67,000	Indymac Indx CI-1 Corp., 6/25/46 †#~		670
			671
Total Mortgage-Backed Securities - Below Investment Grade or Unrated* (cost $37,808,213)			7,215,359
MUNICIPAL SECURITIES - 0.1%
31,045	Pima County Arizona Health Care Facilities, Revenue Bonds, 6.274% 6/1/09		28,647
43,907	Pima County Arizona Health Care Facilities, Revenue Bonds, 6.455% 6/1/10		36,486
Total Municipal Securities (cost $70,587)			65,133
COMMON STOCKS - 2.1%
	Consumer Products - 0.1%
14,940	Home Products #~		448
195,152	Insight Health Services Holdings Corp ~		78,061
			78,509
	Energy - 0.7%
172,700	Pinnacle Gas Resources, Inc. ~		621,720
	Financial - 1.0%
29,800	FSI Realty Trust †~		37,250
148,000	FSI Realty Trust Regulation D †~		185,000
50,000	Mid Country †#~		650,000
			872,250
	Industrial - 0.2%
111,695	Intermet Corporation #~		13,403
1,200	Port Townsend Paper Corp. ~		188,100
			201,503
	Technology - 0.1%
4,169	Taiwan Semiconductor Manufacturing Company Ltd.		45,484
Total Common Stocks (cost $12,117,474)			1,819,466
EURODOLLAR TIME DEPOSITS - 15.4%
13,300,000	State Street Bank & Trust Company Eurodollar time deposits dated June 30, 2008 1.350% maturing at $13,300,499 on July 1, 2008.		13,300,000
Total Investments - 99.5% (cost $303,744,922)			86,116,864
Other Assets and Liabilities, net - 0.5%			465,933
Net Assets		$	86,582,797

† Securities sold within the terms of a private placement memorandum, exempt from registration under Rule 144A under the Securities Act of 1933, as amended, and may be resold in transactions exempt from registration, normally to qualified institutional buyers.

‡ See Note 2 of the accompanying Notes to the Financial Statements regarding investment valuations.

~ Non-income producing securities.

# Securities valued at fair value — See Note 2 of the accompanying Notes to the Financial Statements regarding investment valuations.

* Ratings are unaudited.

The Notes to the Financial Statements are an integral part of, and should be read in conjunction with, the Financial Statements.

Valuation of Investments: Where market quotations are readily available, securities held by the Fund are valued based upon the current bid price, except preferred stocks, which are valued based upon the closing price. Securities may be valued by independent pricing services that have been approved by the Board of Directors. The prices provided by a pricing service take into account broker dealer market price quotations for institutional size trading in similar groups of securities, security quality, maturity, coupon and other security characteristics as well as any developments related to the specific securities. The Fund values mortgage-backed securities (“MBS”) and other debt securities for which market quotations are not readily available at their fair value as determined in good faith, utilizing procedures approved by the Board of Directors of the Fund, on the basis of information provided by dealers in such securities. Some of the general factors which may be considered in determining fair value include the fundamental analytic data relating to the investment and an evaluation of the forces which influence the market in which these securities are purchased and sold. Determination of fair value involves subjective judgment, as the actual market value of a particular security can be established only by negotiations between the parties in a sales transaction. Debt securities having a remaining maturity of sixty days or less when purchased and debt securities originally purchased with maturities in excess of sixty days but which currently have maturities of sixty days or less are valued at amortized cost.

The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry or region. The values of MBS can be significantly affected by changes in interest rates or in the financial condition of an issuer or market.

FAS 157: Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

• Level 1 — quoted prices in active markets for identical securities

• Level 2 — other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2008, in valuing the Fund’s assets carried at fair value:

Valuation Inputs	Investments in Securities
	RMK Advantage Income Fund		RMK High Income Fund		RMK Multi-Sector High Income Fund		RMK Strategic Income Fund
Level 1 - Quoted Prices	$	30,573,345	$	24,176,440	$	21,365,879	$	20,797,683
Level 2 - Other Significant Observable Inputs		18,922,583		13,673,810		14,534,344		16,999,711
Level 3 - Significant Unobservable Inputs		36,620,936		23,865,398		42,646,653		28,677,735
Total	$	86,116,864	$	61,715,648	$	78,546,876	$	66,475,129

Level 3 Reconciliation

	Investments in Securities
	RMK Advantage Income Fund			RMK High Income Fund			RMK Multi-Sector High Income Fund			RMK Strategic Income Fund
Balance as of March 31, 2008	$	64,930,271		$	42,248,380		$	69,393,904		$	55,312,805
Net purchases/(sales) at cost		(8,798,339	)		(3,834,035	)		(4,401,763	)		(9,099,336	)
Realized gain/(loss)		(31,206,464	)		(25,506,501	)		(35,237,192	)		(25,428,591	)
Change in unrealized appreciation/(depreciation)		12,374,999			11,467,578			13,894,304			8,425,479
Accretion/(amortization)		(19,531	)		(2,244	)		(12,600	)		(17,144	)
Transfers in and/or out of Level 3		(660,000	)		(507,780	)		(990,000	)		(515,478	)
Balance as of June 30, 2008	$	36,620,936		$	23,865,398		$	42,646,653		$	28,677,735

Item 2. Controls and Procedures.

(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-Q.

(b) As of the date of filing this Form N-Q, the Registrant’s principal executive officer and principal financial officer are aware of no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s last fiscal quarter that has materially affected or is reasonably likely to materially affect the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

The certifications required by Rule 30a-2(a) of the 1940 Act are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, the Fund has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Fund): RMK Advantage Income Fund, Inc.

by (Signature and Title):	/s/ John J. Feeney, Jr.
	John J. Feeney, Jr.
	President and Principal Executive Officer

Date: August 27, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated.

by (Signature and Title):	/s/ John J. Feeney, Jr.
	John J. Feeney, Jr.
	President and Principal Executive Officer

Date: August 27, 2008

by (Signature and Title):	/s/ Thomas F. Doodian
	Thomas F. Doodian,
	Treasurer and Principal Financial Officers

Date: August 27, 2008