Exhibit 10 (iii)



           MONMOUTH REAL ESTATE INVESTMENT CORPORATION

          Employment of the Executive Vice-President -

                     Cynthia J. Morgenstern



              AGREEMENT EFFECTIVE JANUARY 15, 2003



    BY AND BETWEEN:    Monmouth Real Estate Investment
                       Corporation, A Delaware
                       Corporation ("Corporation")

    AND:               Cynthia J. Morgenstern ("Employee")

    Corporation desires to employ Employee to the business of
    the Corporation and   Employee desires to be so employed.
    The parties agree as follows:

    1.   Employment.

    Corporation agrees to employ Employee and Employee agrees to
    be employed in the capacity as Executive Vice-President for a
    term of one (1) year effective January 15, 2002 and
    terminating January 14, 2003.

    2.   Time and Efforts.

    Employee shall diligently and conscientiously devote her time
    and attention and use her best efforts in the discharge of
    her duties as Executive Vice-President of the Corporation.

    3.   Board of Directors.

   Employee  should  at  all  times  discharge  her  duties   in
   consultation with and under the supervision of the  Board  of
   Directors  of  the  Corporation. In the  performance  of  her
   duties,  Employee  shall make her principal  office  in  such
   place  as  the  Board  of Directors of  the  Corporation  and
   Employee from time to time agree.

    4.   Compensation.

   Corporation shall pay to Employee as compensation for her
   services a base salary of $145,000 annually, which shall be
   paid in equal weekly installments.

   In the event of the disability of employee, her salary shall
   continue for a period of  two years payable monthly.

   Thereafter, the term of this Employment Agreement shall be
   automatically renewed and extended for successive one-year
   periods except that either party may, at least ninety (90)
   days prior to such expiration date or any anniversary
   thereof, give written notice to the other party electing that
   this Employment Agreement not be renewed or extended, in
   which event this Employment Agreement shall expire as of the
   expiration date or anniversary date, respectively.

   

   In the event a merger of the Corporation, or upon any change
   of control, defined as either voting control or control of
   25% of the Board of Directors by other than the existing
   directors, Employee shall have the right to extend and renew
   this Employment Agreement so that the expiration date will be
   one year from the date of merger, or change of control. If
   there is a termination of employment for any reason, either
   involuntary or voluntary, Employee shall be entitled to
   receive one year's compensation at the date of termination.
   The compensation is to be at the greater of current
   compensation or that at the date of merger or change of
   control.



   5.   Bonuses.

   Bonuses shall be paid at the discretion of the Board of
   Directors or the President.

   6.   Expenses.

   Corporation will reimburse Employee for reasonable and
   necessary expenses incurred by her in carrying out her duties
   under this Agreement. Employee shall present to the
   Corporation from time to time an itemized account of such
   expenses in such form as may be required by the Corporation.

   7.   Vacation.

   Employee shall be entitled to take four (4) paid weeks
   vacation per year.

   8.   Pension.

   Employee, at her option, may participate in the 401-k plan of
   United Mobile Homes, Inc., according to its terms.

   9.        Life and Health Insurance Benefits.

   Employee shall be entitled during the term of this Agreement
   to participate in all health insurance and group life
   insurance benefit plans providing benefits generally
   applicable to the employees of United Mobile Homes, Inc. as
   may be modified from time to time. Plan description is
   detailed in Exhibit A attached.

   10.  Notices.

   All  notices  required or permitted to  be  given  under  this
   Agreement  shall  be given by certified mail,  return  receipt
   requested, to the parties at the following addresses  or  such
   other  addresses  as either may designate in  writing  to  the
   other party:

          Corporation:   MREIC
                         Juniper Business Plaza
                         3499 Route 9N, Suite 3C
                          Freehold, NJ 07728

               Employee: Cynthia J. Morgenstern
                         317 Ace Dr.
                         Wall. NJ  07719
   


   11.          Governing Law.

   This Agreement shall be construed and governed in accordance
   with the laws the State     of New Jersey.

   12.          Entire Contract.

   This Agreement constitutes the entire understanding and
   agreement between the Corporation and Employee with regard to
   all matters herein. There are no other agreements, conditions
   or representations, oral or written, express or implied, with
   regard thereto. This agreement may be amended only in writing
   signed by both parties hereto.

   IN WITNESS WHEREOF, Corporation has by its appropriate
   officers signed and affixed its seal and Employee has signed
   and sealed this Agreement.

          MONMOUTH REAL ESTATE INVESTMENT CORPORATION






   (SEAL)           By:   /s/  Ernest V. Bencivenga, Treasurer




                    By:  /s/  Cynthia J. Morgenstern, Employee




 Dated: January 15, 2003