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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-10339

Name of Fund: BlackRock Municipal Income Trust (BFK)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Income Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 10/31/2009

Date of reporting period: 11/01/2008 – 01/31/2009

Item 1 – Schedule of Investments

 

BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
       
Par
         
State                                           Municipal Bonds  
(000)
                     Value  
Alabama - 3.8%   Huntsville, Alabama, Health Care Authority Revenue Bonds, Series B,              
    5.75%, 6/01/12 (a) $ 15,000     $ 17,050,950  
Arizona - 7.1%   Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue              
    Refunding Bonds, AMT, Series 2007-1, 5.25%, 8/01/38 (b)(c)(d)   4,792       4,531,005  
    Pima County, Arizona, IDA, Education Revenue Bonds (American              
    Charter Schools Foundation), Series A, 5.625%, 7/01/38   4,590       2,942,098  
    Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds,              
    5%, 12/01/32   10,280       6,857,891  
    Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds,              
    5%, 12/01/37   14,395       9,340,484  
    Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale              
    Healthcare), 5.80%, 12/01/11 (a)   7,000       7,889,210  
                31,560,688  
California - 16.0%   California County Tobacco Securitization Agency, Tobacco Revenue              
    Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series C,              
    6.303%, 6/01/55 (e)   17,855       100,881  
    California State, GO, Refunding, 5%, 6/01/32   4,000       3,658,120  
    California State, GO, Refunding, 5%, 6/01/34   6,250       5,660,562  
    California Statewide Communities Development Authority, Health              
    Facility Revenue Bonds (Memorial Health Services), Series A, 5.50%,              
    10/01/33   5,000       4,377,950  
    Foothill/Eastern Corridor Agency, California, Toll Road Revenue              
    Refunding Bonds, 6.085%, 1/15/32 (e)   54,635       6,544,180  
    Foothill/Eastern Corridor Agency, California, Toll Road Revenue              
    Refunding Bonds, 6.032%, 1/15/34 (e)   20,535       2,044,670  
    Foothill/Eastern Corridor Agency, California, Toll Road Revenue              
    Refunding Bonds, 6.089%, 1/15/38 (e)   75,000       5,061,000  
    Golden State Tobacco Securitization Corporation of California,              
    Tobacco Settlement Revenue Bonds, Series A-1, 6.625%, 6/01/13 (a)   10,000       11,879,400  
    Lincoln, California, Special Tax Bonds (Community Facilities District              
    Number 2003-1), 6%, 9/01/13 (a)   3,115       3,771,486  
    Los Angeles, California, Regional Airports Improvement Corporation,              
    Facilities Lease Revenue Refunding Bonds (LAXFUEL Corporation - Los              
    Angeles International Airport), AMT, 5.50%, 1/01/32 (f)   13,320       11,460,262  

 Portfolio Abbreviations
 
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the list below.
           
          AMT Alternative Minimum Tax (subject to)   IDA Industrial Development Authority
  EDA Economic Development Authority   IDR Industrial Development Revenue
  EDR Economic Development Revenue Bonds     Bonds
  GO General Obligation Bonds   M/F Multi-Family
  HDA      Housing Development Authority   PCR      Pollution Control Revenue Bonds
  HFA Housing Finance Agency   S/F Single-Family

1


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
  Murrieta, California, Community Facilities District Number 2, Special              
  Tax Bonds (The Oaks Improvement Area Project), Series A, 6%,              
  9/01/34 $ 5,000     $ 3,619,450  
  University of California Revenue Bonds, Series B, 4.75%, 5/15/38   10,565       9,444,265  
  West Valley Mission Community College District, California, GO              
  (Election of 2004), Series A, 4.75%, 8/01/30 (g)   4,015       3,758,080  
              71,380,306  
Colorado - 3.6% Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre              
  Valley Health Care), 5.20%, 3/01/31 (g)   1,440       1,271,102  
  Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre              
  Valley Health Care), Series B, 5.25%, 3/01/36 (g)   2,875       2,494,982  
  Colorado Health Facilities Authority, Revenue Refunding Bonds (Poudre              
  Valley Health Care), Series C, 5.25%, 3/01/40 (g)   5,000       4,283,350  
 
Colorado Springs, Colorado, Utilities System Improvement Revenue
              
  Bonds, Subordinate Lien, Series C, 5%, 11/15/45 (g)   2,545       2,352,369  
  Denver, Colorado, Health and Hospital Authority, Healthcare Revenue              
  Bonds, Series A, 6%, 12/01/11 (a)   3,500       3,925,250  
  Park Creek Metropolitan District, Colorado, Senior Limited Tax              
  Supported Revenue Refunding Bonds, 5.50%, 12/01/37   2,530       1,696,213  
              16,023,266  
District of Columbia - 7.4% District of Columbia Revenue Bonds (Georgetown University), Series A,              
  6.025%, 4/01/11 (a)(e)(h)   15,600       3,440,580  
  District of Columbia Revenue Bonds (Georgetown University), Series A,              
  6.026%, 4/01/11 (a)(e)(h)   51,185       10,633,684  
 
District of Columbia, Revenue Refunding Bonds (Friendship Public
              
  Charter School, Inc.), 5.25%, 6/01/33 (i)   2,390       1,353,146  
  District of Columbia Tobacco Settlement Financing Corporation, Asset-              
  Backed Revenue Refunding Bonds, 6.75%, 5/15/40   25,535       17,640,344  
              33,067,754  
Florida - 9.0% Heritage Isle at Viera Community Development District, Florida,              
  Special Assessment Bonds, Series A, 6%, 5/01/35   1,905       1,402,728  
  Highlands County, Florida, Health Facilities Authority, Hospital              
  Revenue Bonds (Adventist Health System), Series A,              
  6%, 11/15/11 (a)   9,670       10,764,547  
  Martin County, Florida, IDA, IDR, Refunding (Indiantown Cogeneration              
  Project), AMT, Series A, 7.875%, 12/15/25   9,000       7,308,810  
 
Miami Beach, Florida, Health Facilities Authority, Hospital Revenue
              
  Refunding Bonds (Mount Sinai Medical Center of Florida), 6.75%,              
  11/15/21   9,540       7,243,054  
  Orange County, Florida, Tourist Development, Tax Revenue Refunding              
  Bonds, 4.75%, 10/01/32 (j)   5,440       4,467,165  
 
Stevens Plantation Community Development District, Florida, Special
              
  Assessment Revenue Bonds, Series A, 7.10%, 5/01/35   3,830       2,621,597  
 
Village Community Development District Number 5, Florida, Special
              
  Assessment Bonds, 5.625%, 5/01/22   7,740       6,402,683  
              40,210,584  

2


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
Georgia - 0.8% Main Street Natural Gas, Inc. Georgia, Gas Project Revenue Bonds,              
  Series A, 6.375%,7/15/38 (k)(l) $ 3,500     $ 691,215  
 
Richmond County, Georgia, Development Authority, Environmental
              
  Improvement Revenue Refunding Bonds (International Paper Co.              
  Projects), AMT, Series A, 6%, 2/01/25   4,000       2,716,520  
              3,407,735  
Idaho - 4.1% University of Idaho, Student Fee Revenue Bonds (University Housing              
  Improvement Projects), 5.40%, 4/01/11 (a)(m)   16,970       18,518,343  
Illinois - 11.3% Bolingbrook, Illinois, GO, Refunding, Series B, 6.006%,              
  1/01/33 (e)(h)(m)   7,120       1,648,921  
  Bolingbrook, Illinois, GO, Refunding, Series B, 6.006%,              
  1/01/34 (e)(h)(m)   14,085       3,002,359  
 
CenterPoint Intermodal Center Program Trust, Illinois, Tax Allocation
              
  Bonds, Class A, 8%, 6/15/23 (n)   4,630       3,560,238  
  Chicago, Illinois, O'Hare International Airport Revenue Refunding              
  Bonds, Third Lien, AMT, Series C-2, 5.25%, 1/01/30 (g)   7,650       6,510,073  
 
Illinois Educational Facilities Authority, Revenue Refunding Bonds
              
  (University of Chicago), Series A, 5.25%, 7/01/41   760       760,084  
 
Illinois Educational Facilities Authority, Student Housing Revenue
              
 
Bonds (Education Advancement Fund - University Center Project at
              
  DePaul), 6.25%, 5/01/12 (a)   10,000       11,614,800  
  Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst              
  Memorial Healthcare), 5.50%, 1/01/22   5,000       4,494,400  
  Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst              
  Memorial Healthcare), 5.625%, 1/01/28   6,000       4,934,940  
  Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50%,              
  2/01/35 (h)(m)   7,975       6,666,462  
 
Illinois State Finance Authority Revenue Bonds (Friendship Village of
              
  Schaumburg), Series A, 5.625%, 2/15/37   1,685       923,330  
  Illinois State Finance Authority Revenue Bonds (MJH Education              
  Assistance IV LLC), Sub-Series B, 5.375%, 16/01/35 (k)(l)   1,675       164,986  
  Illinois State Finance Authority Revenue Bonds (Monarch Landing, Inc.              
  Project), Series A, 7%, 12/01/37   2,885       1,927,151  
  Illinois State Finance Authority Revenue Bonds (Northwestern Memorial              
  Hospital), Series A, 5.50%, 8/15/14 (a)   3,700       4,428,234  
              50,635,978  
Indiana - 6.1% Indiana Health Facilities Financing Authority, Hospital Revenue              
  Refunding Bonds (Methodist Hospital, Inc.), 5.50%, 9/15/31   9,000       6,452,190  
 
Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co.
              
  Project), AMT, 5.90%, 12/01/24   10,000       7,449,300  
 
Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co.
              
  Project), AMT, 5.95%, 12/01/29   16,000       11,641,440  
  Vincennes, Indiana, EDR, Refunding, 6.25%, 1/01/24   2,220       1,593,405  
              27,136,335  
Kentucky - 0.2% Kentucky Housing Corporation, Housing Revenue Bonds, AMT, Series F,              
  5.45%, 1/01/32 (d)(o)   900       821,016  

3


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
Louisiana - 2.3% Louisiana Local Government Environmental Facilities and Community              
  Development Authority, Revenue Bonds (Capital Projects and              
  Equipment Acquisition Program), 6.55%, 9/01/25 (i)
$
9,215    
$
7,061,270  
 
Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage
              
  Revenue Bonds (Home Ownership Program), Series A,              
  5.25%, 12/01/39 (b)(c)(d)   3,136       3,024,547  
              10,085,817  
Maryland - 0.5% Maryland State Community Development Administration, Department              
  of Housing and Community Development, Residential Revenue              
  Refunding Bonds, AMT, Series A, 4.65%, 9/01/32   2,665       2,130,428  
Michigan - 0.6% Michigan State Hospital Finance Authority, Revenue Refunding Bonds              
  (Henry Ford Health System), Series A, 5.25%, 11/15/46   4,230       2,747,301  
Mississippi - 3.6% Gulfport, Mississippi, Hospital Facility Revenue Bonds (Memorial              
  Hospital at Gulfport Project), Series A, 5.75%, 7/01/31   18,680       16,207,702  
Missouri - 0.1% Missouri Joint Municipal Electric Utility Commission, Power Project              
  Revenue Bonds (Plum Point Project), 4.60%, 1/01/36 (h)   695       458,832  
Multi-State - 9.6% Charter Mac Equity Issuer Trust, 6.30%, 6/30/49 (n)(p)   11,000       11,129,910  
  Charter Mac Equity Issuer Trust, 6.625%, 6/30/49 (n)(p)   1,000       1,010,520  
  Charter Mac Equity Issuer Trust, 6.80%, 11/30/50 (n)(p)   6,500       6,768,515  
  Charter Mac Equity Issuer Trust, 6.80%, 10/31/52 (n)(p)   16,000       17,143,520  
  MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (n)(p)   8,000       6,755,120  
              42,807,585  
Nebraska - 0.7% Omaha Public Power District, Nebraska, Electric System Revenue              
  Bonds, Series A, 4.75%, 2/01/44   3,695       3,340,502  
Nevada - 1.0% Clark County, Nevada, EDR, Refunding (Alexander Dawson School of              
  Nevada Project), 5%, 5/15/29   5,260       4,585,721  
New Hampshire - 1.4% New Hampshire Health and Education Facilities Authority Revenue              
 
Bonds (Exeter Hospital Obligated Group), 5.75%, 10/01/31
  3,500       3,140,970  
 
New Hampshire State Business Finance Authority, PCR, Refunding
              
  (Public Service Company Project), AMT, Series B,              
  4.75%, 5/01/21 (h)   4,000       3,157,920  
              6,298,890  
New Jersey - 7.9% Middlesex County, New Jersey, Improvement Authority, Subordinate              
  Revenue Bonds (Heldrich Center Hotel/Conference Project), Series B,              
  6.25%, 1/01/37   3,680       2,077,323  
  New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%, 6/15/29   18,500       13,767,515  
  New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation              
  Improvement District Project), 6.50%, 4/01/28   8,000       5,981,520  
  New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines,              
  Inc. Project), AMT, 7%, 11/15/30   15,410       10,041,772  
  Tobacco Settlement Financing Corporation of New Jersey, Asset-              
  Backed Revenue Refunding Bonds, Series 1A, 4.50%, 6/01/23   4,610       3,360,321  
              35,228,451  
New York - 4.6% Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant              
  Charter School Project), Series A, 7%, 5/01/35   1,820       1,129,492  

4


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
 
New York City, New York, City IDA, Special Facility Revenue Bonds
              
  (American Airlines, Inc. - JFK International Airport), AMT, 8%, 8/01/28 $ 5,000     $ 3,614,400  
 
New York City, New York, City IDA, Special Facility Revenue Bonds
              
  (Continental Airlines, Inc. Project), AMT, 7.75%, 8/01/31   22,140       15,346,784  
 
New York Liberty Development Corporation Revenue Bonds (Goldman
              
  Sachs Headquarters), 5.25%, 10/01/35   675       542,734  
              20,633,410  
North Carolina - 3.5% Gaston County, North Carolina, Industrial Facilities and Pollution              
  Control Financing Authority, Revenue Bonds (National Gypsum              
  Company Project), AMT, 5.75%, 8/01/35   12,130       6,336,105  
 
North Carolina Capital Facilities Finance Agency, Revenue Refunding
              
  Bonds (Duke University Project), Series B,              
  4.25%, 7/01/42   11,550       9,281,349  
              15,617,454  
Ohio - 4.0% American Municipal Power, Inc., Ohio, Revenue Refunding Bonds              
  (Prairie State Energy Campus Project), Series A, 5%, 2/15/38   4,815       4,383,528  
  Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco              
  Settlement Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47   3,120       1,937,489  
 
Ohio State Air Quality Development Authority, Revenue Refunding
              
  Bonds (Dayton Power and Light Company Project), Series B, 4.80%,              
  1/01/34 (m)(q)   9,570       9,115,329  
  Pinnacle Community Infrastructure Financing Authority, Ohio, Revenue              
  Bonds, Series A, 6.25%, 12/01/36   3,760       2,251,526  
              17,687,872  
Oklahoma - 1.3% Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds,              
  Series A, 7.75%, 6/01/35   7,175       6,044,938  
Pennsylvania - 4.1% Pennsylvania Economic Development Financing Authority, Exempt              
 
Facilities Revenue Bonds (Amtrak Project), AMT, Series A, 6.375%,
              
  11/01/41   6,500       4,675,710  
 
Pennsylvania Economic Development Financing Authority, Exempt
              
  Facilities Revenue Bonds (Reliant Energy), AMT, Series A, 6.75%,              
  12/01/36   15,580       11,592,611  
  Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT,              
  Series 97A, 4.60%, 10/01/27   2,500       2,070,650  
              18,338,971  
South Carolina - 8.5% Lexington County, South Carolina, Health Services District, Inc.,              
  Hospital Revenue Refunding and Improvement Bonds,              
  5.50%, 11/01/13 (a)   5,000       5,862,100  
  Lexington County, South Carolina, Health Services District, Inc.,              
  Hospital Revenue Refunding and Improvement Bonds,              
  5.75%, 11/01/13 (a)   10,000       11,837,800  

5


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
 
Scago Education Facilities Corporation for Chesterfield County School
              
  District, South Carolina, Revenue Refunding Bonds,              
  5%, 12/01/29 (r) $ 5,345     $ 5,091,968  
  South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds              
  (Palmetto Health Alliance), Series A, 6.25%, 8/01/31   5,075       4,440,016  
  South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds              
  (Palmetto Health Alliance), Series C, 6.875%, 8/01/13 (a)   9,000       10,846,804  
              38,078,688  
Tennessee - 2.6% Knox County, Tennessee, Health, Educational and Housing Facilities              
  Board, Hospital Facilities Revenue Refunding Bonds (Covenant Health),              
  Series A, 5.698%, 1/01/20 (e)(g)   20,825       11,442,296  
Texas - 16.6% Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company              
  LLC Project), AMT, Series A, 8.25%, 10/01/30   4,370       2,622,175  
 
Brazos River Authority, Texas, PCR, Refunding (TXU Energy Company
              
  Project), AMT, Series C, 5.75%, 5/01/36   4,265       2,806,370  
 
Harris County-Houston Sports Authority, Texas, Revenue Refunding
              
  Bonds, Junior Lien, Series H, 6.107%, 11/15/35 (e)(h)   5,000       573,200  
 
Harris County-Houston Sports Authority, Texas, Revenue Refunding
              
  Bonds, Senior Lien, Series A, 5.927%, 11/15/38 (e)(h)   12,580       1,157,863  
 
Harris County-Houston Sports Authority, Texas, Revenue Refunding
              
  Bonds, Third Lien, Series A-3, 5.969%, 11/15/37 (e)(h)   26,120       2,519,274  
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds, 5%,              
  5/15/13 (a)(h)   50       57,291  
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds, 5%,              
  5/15/31 (h)   2,345       2,128,111  
 
Lower Colorado River Authority, Texas, Revenue Refunding Bonds,
              
  Series A, 5%, 5/15/13 (a)(h)   5       5,729  
  Lower Colorado River Authority, Texas, Transmission Contract Revenue              
 
Refunding Bonds (LCRA Transmission Services Corp. Project), 4.75%,
              
  5/15/34 (f)   13,305       11,669,948  
  Montgomery County, Texas, Municipal Utility District Number 46,              
  Waterworks and Sewer System, GO, 4.75%, 3/01/30 (h)   1,700       1,545,895  
North Texas Tollway Authority, System Revenue Refunding Bonds,
              
  Second Tier, Series F, 6.125%, 1/01/31   12,180       11,663,081  
 
San Antonio Energy Acquisition Public Facilities Corporation, Texas,
              
  Gas Supply Revenue Bonds, 5.50%, 8/01/25   6,540       4,894,994  
 
Texas State Affordable Housing Corporation, M/F Housing Revenue
              
  Bonds (Amern Opportunity Housing Portfolio), Series B,              
  8%, 3/01/32 (k)(l)   4,435       432,102  
  Texas State Turnpike Authority, Central Texas Turnpike System              
  Revenue Bonds, 6.062%, 8/15/32 (e)(f)   35,000       6,620,250  
  Texas State Turnpike Authority, Central Texas Turnpike System              
  Revenue Bonds, 6.072%, 8/15/33 (e)(f)   62,325       10,931,805  

6


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
     
Par
         
State                                         Municipal Bonds  
(000)
                     Value  
  Texas State Turnpike Authority, Central Texas Turnpike System              
  Revenue Bonds, 6.072%, 8/15/34 (e)(f) $ 65,040     $ 10,548,838  
  Texas State Turnpike Authority, Central Texas Turnpike System              
  Revenue Bonds, First Tier, Series A, 5%, 8/15/42 (f)   5,000       4,026,750  
              74,203,676  
Virginia - 0.4% Virginia Commonwealth Transportation Board, Transportation Contract              
  Revenue Refunding Bonds (U.S. Route 28 Project),              
  5.292%, 4/01/32 (e)(h)   8,105       1,996,748  
Washington - 1.7% King County, Washington, Sewer Revenue Refunding Bonds, 5%,              
  1/01/36 (g)   3,615       3,510,707  
  Washington State Health Care Facilities Authority, Revenue Refunding              
  Bonds (Providence Health System), Series A,              
  4.625%, 10/01/34 (h)(m)   5,095       4,037,329  
              7,548,036  
West Virginia - 0.1% West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and              
  Public Safety Facilities), Series A, 5%, 6/01/29 (h)   320       303,536  
Wisconsin - 3.6% Wisconsin State Health and Educational Facilities Authority Revenue              
  Bonds (Aurora Health Care, Inc.), 6.40%, 4/15/33   7,500       5,905,500  
 
Wisconsin State Health and Educational Facilities Authority, Revenue
              
  Refunding Bonds (Froedtert and Community Health),              
  5.375%, 10/01/30   1,205       1,122,518  
 
Wisconsin State Health and Educational Facilities Authority, Revenue
              
  Refunding Bonds (Wheaton Franciscan Services, Inc.),              
  5.75%, 2/15/12 (a)   8,000       9,120,960  
              16,148,978  
Wyoming - 0.5% Wyoming Community Development Authority, Housing Revenue Bonds,              
  AMT, Series 3, 4.65%, 12/01/27   2,765       2,308,581  
Puerto Rico - 1.1% Puerto Rico Commonwealth Highway and Transportation Authority,              
  Transportation Revenue Refunding Bonds, Series N,              
  5.25%, 7/01/36 (r)   5,000       4,817,000  
  Total Municipal Bonds - 149.7%           668,874,368  
  Municipal Bonds Transferred to              
  Tender Option Bond Trusts (s)              
Alabama - 0.9% Birmingham, Alabama, Special Care Facilities Financing Authority,              
 
Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5%,
              
  11/15/36   4,548       3,908,749  
California - 1.0% University of California Revenue Bonds, Series C, 4.75%, 5/15/37 (h)   5,000       4,511,000  
Colorado - 2.4% Colorado Health Facilities Authority Revenue Bonds (Catholic Health),              
  Series C-3, 5.10%, 10/01/41 (g)   7,600       6,557,052  
  Colorado Health Facilities Authority Revenue Bonds (Catholic Health),              
  Series C-7, 5%, 9/01/36 (g)   4,860       4,202,491  
              10,759,543  

7


BlackRock Municipal Income Trust    
Schedule of Investments January 31, 2009 (Unaudited)   (Percentages shown are based on Net Assets)
  Municipal Bonds Transferred to  
Par
         
State                                         Tender Option Bond Trusts (s)  
(000)
                     Value  
Connecticut - 4.2% Connecticut State Health and Educational Facilities Authority Revenue              
  Bonds (Yale University), Series T-1, 4.70%, 7/01/29 $ 9,400     $ 9,412,596  
  Connecticut State Health and Educational Facilities Authority Revenue              
  Bonds (Yale University), Series X-3, 4.85%, 7/01/37   9,360       9,203,594  
              18,616,190  
Illinois - 1.9% Chicago, Illinois, Housing Authority, Capital Program Revenue              
  Refunding Bonds, 5%, 7/01/24 (g)   8,232       8,374,427  
Massachusetts - 1.4% Massachusetts State Water Resource Authority, General Revenue              
  Refunding Bonds, Series A, 5%, 8/01/41   6,770       6,579,357  
New York - 1.2% New York State Environmental Facilities Corporation, State Clean              
 
Water and Drinking Revenue Bonds (New York City Water Project),
              
  Series B, 5%, 6/15/31   5,370       5,291,491  
Virginia - 3.9% University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40   10,750       10,773,113  
 
Virginia State, HDA, Commonwealth Mortgage Revenue Bonds, Series
              
  H, Sub-Series H-1, 5.35%, 7/01/31 (h)   6,810       6,811,226  
              17,584,339  
Washington - 1.2% Central Puget Sound Regional Transportation Authority, Washington,              
  Sales and Use Tax Revenue Bonds, Series A,              
  5%, 11/01/32 (g)   5,459       5,346,971  
  Total Municipal Bonds Transferred to              
  Tender Option Bond Trusts - 18.1%           80,972,067  
  Total Long-Term Investments              
  (Cost - $889,749,125) - 167.8%           749,846,435  
  Short-Term Securities   Shares          
  Merrill Lynch Institutional Tax-Exempt Fund, 0.60% (t)(u)   27,623,984       27,623,984  
  Total Short-Term Securities              
  (Cost - $27,623,984) - 6.2%           27,623,984  
  Total Investments (Cost - $917,373,109*) - 174.0%           777,470,419  
  Other Assets Less Liabilities - 2.0%           8,982,195  
  Liability for Trust Certificates, Including Interest              
 
Expense and Fees Payable - (10.4)%
          (46,516,062 )
  Preferred Shares, at Redemption Value - (65.6)%           (293,160,154 )
  Net Assets Applicable to Common Shares - 100.0%         $ 446,776,398  

*     

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2009, as computed for federal income tax purposes, were as follows:
 
Aggregate cost                         $                 867,512,050  
Gross unrealized appreciation   $ 23,137,220  
Gross unrealized depreciation     (159,567,710 )
Net unrealized depreciation   $ (136,430,490 )

(a)   

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)

FHLMC Collateralized.
(c)

GNMA Collateralized.
 

8


BlackRock Municipal Income Trust
Schedule of Investments January 31, 2009 (Unaudited)

(d)   

FNMA Collateralized.
(e)

Represents a zero-coupon bond. Rate shown reflects the effective yield as of report date.
(f)

AMBAC Insured.
(g)

FSA Insured.
(h)

MBIA Insured.
(i)

ACA Insured.
(j)

XL Capital Insured.
(k)

Non-income producing security.
(l)

Issuer filed for bankruptcy and/or is in default of interest payments.
(m)

FGIC Insured.
(n)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.
(o)

FHA Insured.
(p)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.
(q)

BHAC Insured.
(r)

Assured Guaranty Insured.
(s)

Securities represent underlying bonds transferred to a separate securitization trust established in a tender option bond transaction in which the Trust may have acquired the residual interest certificates. These securities serve as a collateral in a financing transaction.
(t)

Represents the current yield as of report date.
(u)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
    Net      
Affiliate   Activity                  
Income
Merrill Lynch Institutional Tax-Exempt Fund   25,797,030   $ 29,125
  • Effective November 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:
  • Level 1 - price quotations in active markets/exchanges for identical securities
  • Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

9


BlackRock Municipal Income Trust
Schedule of Investments January 31, 2009 (Unaudited)
  • Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust's own assumption used 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. For information about the Trust's policy regarding valuation of investments and other significant accounting policies, please refer to the Trust's most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of January 31, 2009 in determining the fair valuation of the Trust's investments:

Valuation     Investments in  
Inputs     Securities  
                      Assets  
Level 1                    $ 27,623,984   
Level 2     749,846,435  
Level 3     -  
Total   $                      777,470,419  

 

 

 

 

 

10

Item 2 –   Controls and Procedures
 
2(a) –   The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.
 
2(b) –   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
Item 3 –   Exhibits
 
    Certifications – Attached hereto
 
    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
    BlackRock Municipal Income Trust
 
    By:  /s/ Donald C. Burke                          
          Donald C. Burke
          Chief Executive Officer of
          BlackRock Municipal Income Trust
 
    Date: March 25, 2009
 
    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
    By:  /s/ Donald C. Burke                          
          Donald C. Burke
          Chief Executive Officer (principal executive officer) of
          BlackRock Municipal Income Trust
 
    Date: March 25, 2009
 
    By:  /s/ Neal J. Andrews                          
          Neal J. Andrews
          Chief Financial Officer (principal financial officer) of
          BlackRock Municipal Income Trust
 
    Date: March 25, 2009