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:      10/31/2008

Date of reporting period:      11/01/2007 – 01/31/2008

Item 1 – Schedule of Investments


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face                     
 State   Amount   Municipal Bonds Value
 Alabama - 4.0% $ 4,545   Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds    
        (Ascension Health Credit), Series C-2, 5% due 11/15/2036 $ 4,586
    3,260   Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds    
        (Ascension Health Credit), Series C-2, 5% due 11/15/2039       3,287
    15,000   Huntsville, Alabama, Health Care Authority Revenue Bonds, Series B, 5.75% due 6/01/2012 (j)   16,928
 Arizona - 6.5%   5,336   Phoenix and Pima County, Arizona, IDA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 2007-1,    
        5.25% due 8/01/2038 (e)(f)       5,494
    4,590   Pima County, Arizona, IDA, Education Revenue Bonds (American Charter Schools Foundation), Series    
        A, 5.625% due 7/01/2038       4,275
    10,280   Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2032   9,574
    14,395   Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5% due 12/01/2037   13,226
    7,000   Scottsdale, Arizona, IDA, Hospital Revenue Bonds (Scottsdale Healthcare), 5.80% due 12/01/2011 (j)   7,878
 California - 18.3%   3,385   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco    
        Funding Corporation), Sub-Series B, 5.875% due 6/01/2046 (n)   232
    17,855   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco    
        Funding Corporation), Sub-Series C, 6.30% due 6/01/2055 (n)   530
    22,825   California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco    
        Funding Corporation), Sub-Series D, 7.251% due 6/01/2055 (n)   540
    11,670   California State, GO, Refunding, 5% due 6/01/2032       11,727
    7,000   California State, GO, Refunding, 5% due 6/01/2034       7,016
    5,000   California Statewide Communities Development Authority, Health Facility Revenue Bonds (Memorial    
        Health Services), Series A, 5.50% due 10/01/2033       5,105
    54,635   Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds, 6.09%    
        due 1/15/2032 (n)       13,377
    20,535   Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds, 6.019%    
        due 1/15/2034 (n)       4,446
    75,000   Foothill/Eastern Corridor Agency, California, Toll Road Revenue Refunding Bonds, 6.093%    
        due 1/15/2038 (n)       12,709
                       Portfolio Abbreviations
                       To simplify the listings of BlackRock Municipal Income Trust's portfolio holdings in the Schedule of Investments, we have abbreviated the names of many of
                       the securities according to the list below.
                       AMT  
Alternative Minimum Tax (subject to)
                                                                                               IDA   Industrial Development Authority    
                       EDA  
Economic Development Authority
                                                                                               IDR   Industrial Development Revenue Bonds    
                       EDR  
Economic Development Revenue Bonds
                                                                                               M/F   Multi-Family    
                       GO  
General Obligation Bonds
                                                                                               PCR   Pollution Control Revenue Bonds    
                       HFA  
Housing Finance Authority
                                                                                               S/F   Single-Family    

1


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face        
 State   Amount            Municipal Bonds Value
  $ 10,000   Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Bonds,    
        Series A-1, 6.625% due 6/01/2013 (j) $ 11,782
    5,000   Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding    
        Bonds, Series A, 5% due 6/01/2045   4,804
    3,115   Lincoln, California, Special Tax Bonds (Community Facilities District Number 2003-1), 6% due    
        9/01/2013 (j)   3,676
    13,320   Los Angeles, California, Regional Airports Improvement Corporation, Facilities Lease Revenue    
        Refunding Bonds (LAXFUEL Corporation - Los Angeles International Airport), AMT, 5.50% due    
        1/01/2032 (b)   13,654
    5,000   Murrieta, California, Community Facilities District Number 2, Special Tax Bonds (The Oaks    
        Improvement Area Project), Series A, 6% due 9/01/2034   4,889
    10,565   University of California Revenue Bonds, Series B, 4.75% due 5/15/2038   10,587
    5,000   University of California Revenue Bonds, Series C, 4.75% due 5/15/2037 (i)   4,930
    4,015   West Valley Mission Community College District, California, GO (Election of 2004), Series A, 4.75%    
        due 8/01/2030 (g)   4,088
 Colorado - 1.4%   2,545   Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds, Subordinate Lien, Series C,    
        5% due 11/15/2045 (g)   2,621
    3,500   Denver, Colorado, Health and Hospital Authority, Healthcare Revenue Bonds, Series A, 6% due    
        12/01/2011 (j)   3,923
    2,530   Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported Revenue Refunding Bonds,    
        5.50% due 12/01/2037   2,447
 District of Columbia - 6.7%   15,600   District of Columbia Revenue Bonds (Georgetown University), Series A, 6.013% due 4/01/2011 (i)(j)(n)   3,277
    51,185   District of Columbia Revenue Bonds (Georgetown University), Series A, 6.015% due 4/01/2011 (i)(j)(n)   10,127
    2,390   District of Columbia, Revenue Refunding Bonds (Friendship Public Charter School, Inc.), 5.25% due    
        6/01/2033 (a)   2,199
    25,535   District of Columbia Tobacco Settlement Financing Corporation, Asset-Backed Revenue Refunding    
        Bonds, 6.75% due 5/15/2040   26,092
 Florida - 11.3%   1,905   Heritage Isle at Viera Community Development District, Florida, Special Assessment Bonds, Series A,    
        6% due 5/01/2035   1,848
    9,670   Highlands County, Florida, Health Facilities Authority, Hospital Revenue Bonds (Adventist Health    
        System), Series A, 6% due 11/15/2011 (j)   10,914
    11,035   Jacksonville Electric Authority, Florida, Electric System Revenue Bonds, Series 3-A, 4.75% due    
        10/01/2034 (g)   11,046
    2,900   Jacksonville Electric Authority, Florida, Water and Sewer System Revenue Bonds, Series A, 4.75% due    
        10/01/2041 (i)   2,853
    9,000   Martin County, Florida, IDA, IDR, Refunding (Indiantown Cogeneration Project), AMT, Series A,    
        7.875% due 12/15/2025   9,050

2


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face        
 State   Amount            Municipal Bonds Value
  $ 11,685   Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding Bonds (Mount Sinai    
        Medical Center of Florida), 6.75% due 11/15/2021 $ 12,186
    10,830   Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds, 4.75% due 10/01/2032 (m)   10,356
    3,880   Stevens Plantation Community Development District, Florida, Special Assessment Revenue Bonds, Series    
        A, 7.10% due 5/01/2035   3,978
    8,335   Village Community Development District Number 5, Florida, Special Assessment Bonds, 5.625% due    
        5/01/2022   8,377
 Georgia - 0.7%   4,000   Richmond County, Georgia, Development Authority, Environmental Improvement Revenue Refunding    
        Bonds (International Paper Co. Projects), AMT, Series A, 6% due 2/01/2025   4,079
 Idaho - 3.0%   16,970   University of Idaho, Student Fee Revenue Bonds (University Housing Improvement Projects), 5.40% due    
        4/01/2011 (d)(j)   18,480
 Illinois - 13.7%   7,120   Bolingbrook, Illinois, GO, Refunding, Series B, 6% due 1/01/2033 (d)(n)   1,958
    14,085   Bolingbrook, Illinois, GO, Refunding, Series B, 6% due 1/01/2034 (d)(n)   3,622
    4,630   Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds, Class A, 8%    
        due 6/15/2023 (l)   4,495
    8,225   Chicago, Illinois, Housing Authority, Capital Program Revenue Refunding Bonds, 5% due 7/01/2024 (g)   8,598
    7,645   Chicago, Illinois, O'Hare International Airport Revenue Refunding Bonds, Third Lien, AMT, Series C-2,    
        5.25% due 1/01/2030 (g)   7,773
    7,145   Illinois Development Finance Authority, Hospital Revenue Bonds (Adventist Health System/Sunbelt    
        Obligated Group), 5.65% due 11/15/2009 (j)   7,640
    760   Illinois Educational Facilities Authority, Revenue Refunding Bonds (University of Chicago), Series A,    
        5.25% due 7/01/2041   804
    10,000   Illinois Educational Facilities Authority, Student Housing Revenue Bonds (Education Advancement    
        Fund - University Center Project at DePaul), 6.25% due 5/01/2012 (j)   11,521
    5,000   Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst Memorial Healthcare), 5.50%    
        due 1/01/2022   5,189
    6,000   Illinois Health Facilities Authority, Revenue Refunding Bonds (Elmhurst Memorial Healthcare), 5.625%    
        due 1/01/2028   6,156
    7,975   Illinois Municipal Electric Agency, Power Supply Revenue Bonds, 4.50% due 2/01/2035 (d)   7,523
    1,685   Illinois State Finance Authority Revenue Bonds (Friendship Village of Schaumburg), Series A, 5.625%    
        due 2/15/2037   1,510
    2,885   Illinois State Finance Authority Revenue Bonds (Monarch Landing, Inc. Project), Series A, 7% due    
        12/01/2037   2,901
    3,700   Illinois State Finance Authority Revenue Bonds (Northwestern Memorial Hospital), Series A, 5.50% due    
        8/15/2014 (j)   4,263
    1,675   Illinois State Financing Authority, Student Housing Revenue Bonds (MJH Education Assistance IV LLC),    
        Sub-Series B, 5.375% due 6/01/2035   836

3


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face        
 State   Amount            Municipal Bonds Value
  $ 40,000   Metropolitan Pier and Exposition Authority, Illinois, Dedicated State Tax Revenue Bonds (McCormick    
        Place Expansion), Series A, 6.01% due 12/15/2034 (i)(n) $ 10,499
 Indiana - 5.9%   9,000   Indiana Health Facilities Financing Authority, Hospital Revenue Refunding Bonds (Methodist Hospital,    
        Inc.), 5.50% due 9/15/2031   8,213
    10,000   Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co. Project), AMT, 5.90% due    
        12/01/2024   10,133
    16,000   Petersburg, Indiana, PCR, Refunding (Indianapolis Power & Light Co. Project), AMT, 5.95% due    
        12/01/2029   16,058
    2,305   Vincennes, Indiana, EDR, Refunding, 6.25% due 1/01/2024   2,208
 Kentucky - 0.2%   1,365   Kentucky Housing Corporation, Housing Revenue Bonds, AMT, Series F, 5.45% due 1/01/2032 (f)   1,376
 Louisiana - 2.0%   9,215   Louisiana Local Government Environmental Facilities and Community Development Authority, Revenue    
        Bonds (Capital Projects and Equipment Acquisition Program), 6.55% due 9/01/2025 (a)   9,349
    3,246   Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage Revenue Bonds (Home Ownership    
        Program), Series A, 5.25% due 12/01/2039 (e)(f)   3,368
 Maryland - 1.6%   3,200   Baltimore, Maryland, Wastewater Project Revenue Bonds, Series D, 5% due 7/01/2037 (b)   3,299
    2,665   Maryland State Community Development Administration, Department of Housing and Community    
        Development, Residential Revenue Refunding Bonds, AMT, Series A, 4.65% due 9/01/2032   2,473
    4,205   Maryland State Health and Higher Educational Facilities Authority, Revenue Refunding Bonds (MedStar    
        Health, Inc.), 5.50% due 8/15/2033   4,227
 Massachusetts - 1.1%   6,770   Massachusetts State Water Resource Authority, General Revenue Refunding Bonds, Series A, 5% due    
        8/01/2041   6,997
 Michigan - 0.7%   4,230   Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry Ford Health System),    
        Series A, 5.25% due 11/15/2046   4,180
 Mississippi - 3.7%   18,680   Gulfport, Mississippi, Hospital Facility Revenue Bonds (Memorial Hospital at Gulfport Project), Series A,    
        5.75% due 7/01/2031   18,910
    4,845   Mississippi Business Finance Corporation Revenue Bonds (Northrop Grumman Ship System), 4.55% due    
        12/01/2028   4,468
 Missouri - 0.1%   695   Missouri Joint Municipal Electric Utility Commission, Power Project Revenue Bonds (Plum Point    
        Project), 4.60% due 1/01/2036 (i)   648
 Nebraska - 1.1%   6,990   Omaha Public Power District, Nebraska, Electric System Revenue Bonds, Series A, 4.75% due 2/01/2044   6,942
 Nevada - 1.6%   5,260   Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada Project), 5% due    
        5/15/2029   5,281
    5,000   Clark County, Nevada, Senior Airport Revenue Bonds, Series A, 5% due 7/01/2040 (b)   4,929
 New Hampshire - 1.2%   3,500   New Hampshire Health and Education Facilities Authority Revenue Bonds (Exeter Hospital Obligated    
        Group), 5.75% due 10/01/2031   3,602
    4,000   New Hampshire State Business Finance Authority, PCR, Refunding (Public Service Company Project),    
        AMT, Series B, 4.75% due 5/01/2021 (i)   4,016

4


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face                 
 State   Amount   Municipal Bonds Value
 New Jersey - 8.1% $ 3,680   Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue Bonds (Heldrich Center    
        Hotel/Conference Project), Series B, 6.25% due 1/01/2037 $ 3,320
    18,500   New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75% due 6/15/2029   18,404
    8,000   New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill Reclamation Improvement District    
        Project), 6.50% due 4/01/2028   8,635
    15,410   New Jersey EDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project), AMT, 7% due    
        11/15/2030   15,523
    4,960   Tobacco Settlement Financing Corporation of New Jersey, Asset-Backed Revenue Refunding Bonds,    
        Series 1A, 4.50% due 6/01/2023   4,606
 New York - 8.0%   1,820   Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter School Project), Series    
        A, 7% due 5/01/2035   1,472
    7,115   Metropolitan Transportation Authority, New York, Service Contract Revenue Refunding Bonds, Series A,    
        5% due 7/01/2030 (b)   7,296
    5,000   New York City, New York, City IDA, Special Facility Revenue Bonds (American Airlines, Inc. - JFK    
        International Airport), AMT, 8% due 8/01/2028   5,496
    22,140   New York City, New York, City IDA, Special Facility Revenue Bonds (Continental Airlines Inc. Project),    
        AMT, 7.75% due 8/01/2031   23,874
    6,025   New York Liberty Development Corporation Revenue Bonds (Goldman Sachs Headquarters), 5.25% due    
        10/01/2035   6,323
    5,375   New York State Environmental Facilities Corporation, State Clean Water and Drinking Revenue Bonds    
        (New York City Water Project), Series B, 5% due 6/15/2031   5,510
 North Carolina - 3.7%   12,130   Gaston County, North Carolina, Industrial Facilities and Pollution Control Financing Authority, Revenue    
        Bonds (National Gypsum Company Project), AMT, 5.75% due 8/01/2035   11,447
    12,550   North Carolina Capital Facilities Finance Agency, Revenue Refunding Bonds (Duke University Project),    
        Series B, 4.25% due 7/01/2042   11,743
 Ohio - 4.8%   3,120   Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed Bonds, Series    
        A-2, 6.50% due 6/01/2047   3,203
    23,820   Ohio State Air Quality Development Authority, Revenue Refunding Bonds (Dayton Power and Light    
        Company Project), Series B, 4.80% due 1/01/2034 (d)   22,864
    3,760   Pinnacle Community Infrastructure Financing Authority, Ohio, Revenue Bonds, Series A, 6.25% due    
        12/01/2036   3,730
 Oklahoma - 2.1%   5,420   Oklahoma State Development Finance Authority, Revenue Refunding Bonds (Saint John Health System),    
        5% due 2/15/2042   5,333
    7,175   Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A, 7.75% due 6/01/2035   7,646

5


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face                 
 State   Amount   Municipal Bonds Value
 Pennsylvania - 4.6% $ 6,500   Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Amtrak    
        Project), AMT, Series A, 6.375% due 11/01/2041 $ 6,733
    15,580   Pennsylvania Economic Development Financing Authority, Exempt Facilities Revenue Bonds (Reliant    
        Energy), AMT, Series A, 6.75% due 12/01/2036   15,915
    2,500   Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A, 4.60% due 10/01/2027   2,379
    4,000   Pennsylvania State Higher Educational Facilities Authority Revenue Bonds (LaSalle University), 5.50%    
        due 5/01/2034   4,025
 Puerto Rico - 2.8%   5,000   Puerto Rico Commonwealth Highway and Transportation Authority, Transportation Revenue Refunding    
        Bonds, Series N, 5.25% due 7/01/2036 (c)   5,487
    11,000   Puerto Rico Electric Power Authority, Power Revenue Refunding Bonds, Series UU, 5% due 7/01/2020 (g)   11,798
 South Carolina - 6.4%   5,000   Lexington County, South Carolina, Health Services District Inc., Hospital Revenue Refunding and    
        Improvement Bonds, 5.50% due 11/01/2013 (j)   5,687
    10,000   Lexington County, South Carolina, Health Services District Inc., Hospital Revenue Refunding and    
        Improvement Bonds, 5.75% due 11/01/2013 (j)   11,506
    6,345   Scago Education Facilities Corporation for Chesterfield County School District, South Carolina, Revenue    
        Refunding Bonds, 5% due 12/01/2029 (c)   6,499
    5,075   South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance),    
        Series A, 6.25% due 8/01/2031   5,246
    8,010   South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance),    
        Series C, 6.875% due 8/01/2013 (j)   9,646
    990   South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds (Palmetto Health Alliance),    
        Series C, 6.875% due 8/01/2013 (j)   1,189
 Tennessee - 2.4%   20,825   Knox County, Tennessee, Health, Educational and Housing Facilities Board, Hospital Facilities Revenue    
        Refunding Bonds (Covenant Health), Series A, 5.70% due 1/01/2020 (g)(n)   11,355
    3,475   Shelby County, Tennessee, Health, Educational and Housing Facility Board, Hospital Revenue Refunding    
        Bonds (Saint Jude Children's Research Hospital), 5% due 7/01/2025   3,547
 Texas - 13.4%   5,000   Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Junior Lien, Series H,    
        6.065% due 11/15/2035 (i)(n)   1,118
    12,580   Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Senior Lien, Series A,    
        5.832% due 11/15/2038 (i)(n)   2,300
    26,120   Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds, Third Lien, Series A-3,    
        5.97% due 11/15/2037 (i)(n)   5,044
    50   Lower Colorado River Authority, Texas, Revenue Refunding Bonds, 5% due 5/15/2013 (i)(j)   56
    2,345   Lower Colorado River Authority, Texas, Revenue Refunding Bonds, 5% due 5/15/2031 (i)   2,396
    5   Lower Colorado River Authority, Texas, Revenue Refunding Bonds, Series A, 5% due 5/15/2013 (i)(j)   6
    13,305   Lower Colorado River Authority, Texas, Transmission Contract Revenue Refunding Bonds (LCRA    
        Transmission Services Corp. Project), 4.75% due 5/15/2034 (b)   13,284

6


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face                 
 State   Amount   Municipal Bonds Value
  $ 1,700   Montgomery County, Texas, Municipal Utility District Number 46, Waterworks and Sewer System, GO,    
        4.75% due 3/01/2030 (i) $ 1,655
    5,060   Pearland, Texas, GO, Refunding, 4.75% due 3/01/2029 (d)   5,080
    6,540   SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply Revenue Bonds, 5.50% due    
        8/01/2025   6,714
    4,435   Texas State Affordable Housing Corporation, M/F Housing Revenue Bonds (Amern Opportunity Housing    
        Portfolio), Series B, 8% due 3/01/2032 (h)   657
    35,000   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.07%    
        due 8/15/2032 (b)(n)   8,646
    62,325   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.08%    
        due 8/15/2033 (b)(n)   14,436
    65,040   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, 6.08%    
        due 8/15/2034 (b)(n)   14,153
    8,390   Texas State Turnpike Authority, Central Texas Turnpike System Revenue Bonds, First Tier, Series A, 5%    
        due 8/15/2042 (b)   8,254
 Virginia - 0.4%   8,105   Virginia Commonwealth Transportation Board, Transportation Contract Revenue Refunding Bonds (U.S.    
        Route 28 Project), 5.287% due 4/01/2032 (i)(n)   2,292
 Washington - 1.4%   3,615   King County, Washington, Sewer Revenue Refunding Bonds, 5% due 1/01/2036 (g)   3,737
    5,095   Washington State Health Care Facilities Authority, Revenue Refunding Bonds (Providence Health    
        System), Series A, 4.625% due 10/01/2034 (d)   4,932
 West Virginia - 0.3%   2,070   West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile and Public Safety Facilities), Series A,    
        5% due 6/01/2029 (i)   2,121
 Wisconsin - 6.4%   7,500   Wisconsin State Health and Educational Facilities Authority Revenue Bonds (Aurora Health Care, Inc.),    
        6.40% due 4/15/2033   7,882
    12,545   Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Froedtert and    
        Community Health), 5.375% due 10/01/2011 (j)   13,906
    1,205   Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Froedtert and    
        Community Health), 5.375% due 10/01/2030   1,281
    15,000   Wisconsin State Health and Educational Facilities Authority, Revenue Refunding Bonds (Wheaton    
        Franciscan Services, Inc.), 5.75% due 2/15/2012 (j)   16,883
 Wyoming - 0.8%   2,765   Wyoming Community Development Authority, Housing Revenue Bonds, AMT, Series 3, 4.65% due    
        12/01/2027   2,641
    2,605   Wyoming Community Development Authority, Housing Revenue Bonds, AMT, Series 3, 4.70% due    
        12/01/2032   2,426
        Total Municipal Bonds (Cost - $912,630) - 150.4%   938,495

7


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited) (in Thousands)
    Face                   
    Amount   Corporate Bonds Value
 Multi-State - 7.4% $ 11,000   Charter Mac Equity Issuer Trust, 6.30% due 6/30/2049 (l) $ 11,494  
    1,000   Charter Mac Equity Issuer Trust, 6.625% due 6/30/2049 (l)   1,049  
    6,500   Charter Mac Equity Issuer Trust, 6.80% due 11/30/2050 (l)   7,106  
    16,000   Charter Mac Equity Issuer Trust, 6.80% due 10/31/2052 (l)   18,396  
    8,000   MuniMae TE Bond Subsidiary, LLC, 6.875% due 6/30/2049 (l)   8,375  
        Total Corporate Bonds (Cost - $42,800) - 7.4%   46,420  
    Shares Held   Short-Term Securities      
    6,700   Merrill Lynch Institutional Tax-Exempt Fund, 2.47% (k)(o)   6,700  
        Total Short-Term Securities (Cost - $6,700) - 1.1%   6,700  
        Total Investments (Cost - $962,130*) - 158.9%   991,615  
        Other Assets Less Liabilities - 1.2%   7,720  
        Preferred Shares, at Redemption Value - (60.1%)   (375,281 )
        Net Assets Applicable to Common Shares - 100.0% $ 624,054  

*         The cost and unrealized appreciation (depreciation) of investments as of January 31, 2008, as  
    computed for federal income tax purposes, were as follows:  
    Aggregate cost $ 959,718  
    Gross unrealized appreciation $ 49,591  
    Gross unrealized depreciation   (17,694 )
    Net unrealized appreciation $ 31,897  

(a)     

ACA Insured.
(b)     

AMBAC Insured.
(c)     

Assured Guaranty Insured.
(d)     

FGIC Insured.
(e)     

FHLMC Collateralized.
(f)     

FNMA/GNMA Collateralized.
(h)     

Non-income producing security; issuer filed for bankruptcy or is in default of interest payments.
(i)     

MBIA Insured.
(j)     

Prerefunded.
(k)     

Represents the current yield as of January 31, 2008.
(l)     

The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933.
(m)     

XL Capital Insured.
(n)     

Represents a zero coupon bond; the interest rate shown reflects the effective yield at the time of purchase.
(o)     

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:

Affiliate Net Activity Dividend Income
Merrill Lynch Institutional Tax-Exempt Fund          4,100 $ 95

8


BlackRock Municipal Income Trust
Schedule of Investments as of January 31, 2008 (Unaudited)       (in Thousands)
      •     Financial futures contracts sold as of January 31, 2008 were as follows:              
    Number of   Expiration Face     Unrealized    
    Contracts Issue Date Value     Depreciation    
    500 10-Year U.S.                
      Treasury Note March 2008 $ 56,366   $ (1,993 )  
  •     Forward interest rate swaps outstanding as of January 31, 2008 were as follows:              
            Notional     Unrealized    
            Amount     Depreciation    
    Pay a fixed rate of 4.3385% and receive a floating rate based on 3-month USD LIBOR              
    Broker, JPMorgan Chase                  
       Expires May 2018     $ 54,390   $ (293 )  
                   
    Pay a fixed rate of 3.585% and receive a floating rate based on 1-week (SIFMA) Municipal              
    Swap Index rate                  
                       
    Broker, JPMorgan Chase                  
       Expires April 2023     $ 26,800     (169 )  
                   
    Pay a fixed rate of 3.731% and receive a floating rate based on 1-week (SIFMA) Municipal              
    Swap Index rate                  
                       
    Broker, Citibank NA                  
       Expires March 2028     $ 17,160     (127 )  
    Total           $ (589 )  

9

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 13a-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 24, 2008

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 24, 2008

By:   /s/ Neal J. Andrews                         
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Income Trust

Date: March 24, 2008