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

                                    FORM N-Q
  QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT
                                   COMPANIES




                                   811-21235
                      (Investment Company Act File Number)


                    Federated Premier Municipal Income Fund
        _______________________________________________________________

               (Exact Name of Registrant as Specified in Charter)



                           Federated Investors Funds
                              5800 Corporate Drive
                      Pittsburgh, Pennsylvania 15237-7000


                                 (412) 288-1900
                        (Registrant's Telephone Number)


                           John W. McGonigle, Esquire
                           Federated Investors Tower
                              1001 Liberty Avenue
                      Pittsburgh, Pennsylvania 15222-3779
                    (Name and Address of Agent for Service)
               (Notices should be sent to the Agent for Service)






                       Date of Fiscal Year End:  11/30/07


                Date of Reporting Period:  Quarter ended 8/31/07








ITEM 1.     SCHEDULE OF INVESTMENTS




FEDERATED PREMIER MUNICIPAL INCOME FUND
PORTFOLIO OF INVESTMENTS
August 31, 2007 (unaudited)



    PRINCIPAL                                                                                                                  VALUE
    AMOUNT
                                                                                                        
                  MUNICIPAL BONDS-98.9%
                  ALABAMA--0.4%
  $   550,000     Courtland, AL IDB, PCR Refunding Bonds (Series 2005A), 5.00% (International Paper Co.), 6/1/2025    $      523,831
                  ARIZONA-1.4%
      400,000     Arizona Tourism & Sports Authority, Multipurpose Stadium Facilities Tax Revenue Bonds (Series              424,884
                  A), 5.00% (United States Treasury PRF 7/1/2013@100), 7/1/2024
      750,000     Tempe, AZ IDA, Senior Living Revenue Bonds (Series A), 6.75% (Friendship Village of Tempe),                796,050
                  12/1/2030
      750,000     Verrado Community Facilities District No. 1, AZ, Revenue Bonds, 6.50%, 7/15/2027                           771,998
                     TOTAL                                                                                                 1,992,932
                  ARKANSAS-0.8%
    1,000,000     Arkansas Development Finance Authority, Hospital Revenue Bonds (Series 2000), 7.375% (Washington         1,080,560
                  Regional Medical Center)/(United States Treasury PRF 2/1/2010@100)/(Original Issue Yield:
                  7.50%), 2/1/2029
                  CALIFORNIA-5.8%
    1,000,000     California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds          1,082,830
                  (Series A), 5.375% (United States Treasury PRF 5/1/2012@101)/(Original Issue Yield: 5.48%),
                  5/1/2022
    1,000,000     California State, Refunding UT GO Bonds, 5.25%, 2/1/2020                                                 1,041,020
    1,000,000     California State, UT GO Bonds, 5.25%, 10/1/2020                                                          1,046,280
      900,000     Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Bonds (Series               873,927
                  2007A-1), 5.75%, 6/1/2047
      250,000     Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Asset-Backed Revenue Bonds               287,085
                  (Series 2003A-1), 6.75% (United States Treasury PRF 6/1/2013@100)/(Original Issue Yield: 7.00%),
                  6/1/2039
      750,000     Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue Bonds (Series 2003A-             902,700
                  2), 7.90% (United States Treasury PRF 6/1/2013@100), 6/1/2042
      500,000     La Verne, CA, Revenue COPs (Series 2003B), 6.625% (Brethren Hillcrest Homes)/(Original Issue               530,390
                  Yield: 6.70%), 2/15/2025
    1,000,000     Stockton, CA Public Financing Authority, Redevelopment Projects Revenue Bonds (Series 2006A),              959,200
                  5.25% (Radian Asset Assurance INS), 9/1/2031
    1,500,000     Upland, CA Public Financing Authority, Water System Improvement Lease Revenue Bonds (Issue of            1,529,070
                  2003), 5.00% (AMBAC INS), 10/1/2027
                     TOTAL                                                                                                 8,252,502
                  COLORADO-6.6%
      725,000     Antelope Heights Metropolitan District, CO, LT GO Bonds, 8.00%, 12/1/2023                                  795,825
    1,000,000     Bromley Park, CO Metropolitan District No.2, UT GO Bonds, 5.125% (Radian Asset Assurance INS),             937,950
                  12/1/2037
    1,000,000     Buckhorn Valley Metropolitan District No. 2, CO, LT GO Bonds, 7.00%, 12/1/2023                           1,008,080
      500,000     Colorado Educational & Cultural Facilities Authority, Revenue Refunding Bonds (Series A), 7.00%            541,440
                  (Denver Academy)/(Original Issue Yield: 7.25%), 11/1/2023
    1,000,000     Colorado Health Facilities Authority, Revenue Bonds (Series 2002A), 6.125% (Covenant Retirement          1,023,820
                  Communities, Inc.)/(Original Issue Yield: 6.40%), 12/1/2033
    2,000,000     Colorado Health Facilities Authority, Revenue Bonds (Series 2006A), 4.75% (Catholic Health               1,874,580
                  Initiatives)/(Original Issue Yield: 4.828%), 9/1/2040
      250,000     Conservatory Metropolitan District, CO, LT GO Bonds, 6.75% (United States Treasury PRF                     292,253
                  12/1/2013@102), 12/1/2034
      500,000     Conservatory Metropolitan District, CO, LT GO Bonds, 7.55% (United States Treasury PRF                     605,155
                  12/1/2013@102), 12/1/2032
      665,000     Conservatory Metropolitan District, CO, Refunding & Improvement LT GO Bonds, 5.125% (Radian                615,504
                  Asset Assurance INS), 12/1/2037
    1,000,000     Denver, CO Health & Hospital Authority, Revenue Bonds, 6.25% (United States Treasury PRF                 1,140,990
                  12/1/2014@100)/(Original Issue Yield: 6.28%), 12/1/2033
      500,000     Southlands, CO Metropolitan District No. 1, LT GO Bonds (Series 2004), 7.00% (United States                596,330
                  Treasury PRF 12/1/2014@100)/(Original Issue Yield: 7.05%), 12/1/2024
                     TOTAL                                                                                                 9,431,927
                  CONNECTICUT-1.4%
    1,250,000     Connecticut State Development Authority, First Mortgage Gross Revenue Health Care Project Bonds          1,269,588
                  (Series 2003), 5.85% (Elim Park Baptist Home, Inc.)/(Original Issue Yield: 5.98%), 12/1/2033
      825,000     Connecticut State HEFA, Revenue Bonds (Series 2006B), 5.00% (Canterbury School)/                           767,877
                  (Radian Asset Assurance INS), 7/1/2036
                     TOTAL                                                                                                 2,037,465
                  DISTRICT OF COLUMBIA-1.9%
    2,500,000     District of Columbia Tobacco Settlement Financing Corp., Asset-Backed Revenue Bonds, 6.50%               2,735,600
                  (Original Issue Yield: 6.67%), 5/15/2033
                  FLORIDA-8.3%
      600,000     Broward County, FL Educational Facilities Authority, Educational Facilities Revenue Bonds                  609,798
                  (Series 2004B), 5.60% (Nova Southeastern University)/(Original Issue Yield: 5.625%), 4/1/2029
      400,000   1 Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida                   474,440
                  Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102), 10/1/2033
    1,490,000     Citrus County, FL Hospital Board, Revenue Refunding Bonds, 6.375% (Citrus Memorial                       1,554,636
                  Hospital)/(Original Issue Yield: 6.50%), 8/15/2032
    1,275,000     Harbor Bay, FL Community Development District, Special Assessment Revenue Bonds, 6.75%, 5/1/2034         1,348,835
    2,000,000     Jacksonville, FL Sales Tax, Revenue Bonds (Series 2003), 5.00% (MBIA Insurance Corp. INS),               2,048,340
                  10/1/2024
      400,000     Midtown Miami, FL Community Development District, Special Assessment Bonds (Series 2004A),                 395,812
                  6.00%, 5/1/2024
      400,000     Orlando, FL Urban Community Development District, Capital Improvement Revenue Bonds, 6.25%,                410,228
                  5/1/2034
    1,000,000     South Lake County, FL Hospital District, Revenue Bonds, 6.625% (South Lake Hospital, Inc.),              1,063,280
                  10/1/2023
    2,000,000     South Miami, FL Health Facilities Authority, Health Facilities Revenue Bonds (Series 2007),              1,967,480
                  5.00% (Baptist Health System of South Florida), 8/15/2042
      500,000     Tuscany Reserve Community Development District, FL, Capital Improvement Revenue Bonds (Series              464,195
                  2005A), 5.55%, 5/1/2036
    1,030,000     Verandah West, FL Community Development District, Capital Improvement Revenue Bonds (Series              1,080,377
                  2003A), 6.625% (Original Issue Yield: 6.75%), 5/1/2033
      500,000     Winter Garden Village at Fowler Groves Community Development District, FL, Special Assessment              471,225
                  Bonds (Series 2006), 5.65%, 5/1/2037
                     TOTAL                                                                                                11,888,646
                  HAWAII-1.1%
    1,400,000     Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds (Series A), 8.00%             1,574,146
                  (Kahala Nui)/(Original Issue Yield: 8.175%), 11/15/2033
                  ILLINOIS-4.7%
      996,000     Antioch Village, IL Special Service Area No. 1, Special Tax Revenue Bonds, 6.625% (Deercrest             1,033,768
                  Project), 3/1/2033
    2,500,000     Chicago, IL Sales Tax, Revenue Bonds, 5.25% (FGIC INS)/(Original Issue Yield: 5.385%), 1/1/2028          2,563,900
    1,000,000     Chicago, IL Special Assessment, Improvement Revenue Bonds, 6.75% (Lakeshore East                         1,049,430
                  Project)/(Original Issue Yield: 6.769%), 12/1/2032
      420,000     DuPage County, IL, Special Tax Bonds (Series 2006), 5.625% (Naperville Campus LLC), 3/1/2036               398,509
    1,000,000     Illinois Educational Facilities Authority, Revenue Refunding Bonds (Series A), 5.70% (Augustana          1,017,300
                  College)/(Original Issue Yield: 5.90%), 10/1/2032
      625,000     Illinois Finance Authority, Revenue Bonds (Series 2005A), 6.00% (Landing at Plymouth                       619,369
                  Place)/(Original Issue Yield: 6.04%), 5/15/2037
                     TOTAL                                                                                                 6,682,276
                  INDIANA-1.3%
    1,930,000     Indiana Health & Educational Facility Financing Authority, Revenue Bonds (Series 2005), 5.25%            1,874,551
                  (Baptist Homes of Indiana), 11/15/2035
                  KENTUCKY-2.6%
      325,000     Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(Original Issue              347,688
                  Yield: 6.97%), 10/1/2028
    1,175,000     Kentucky EDFA, Revenue Bonds (Series 2000A), 6.625% (Norton Healthcare, Inc.)/(United States             1,283,288
                  Treasury PRF 10/1/2010@101)/(Original Issue Yield: 6.97%), 10/1/2028
    2,000,000     Kentucky Municipal Power Agency, Power System Revenue Bonds (Series 2007A), 5.25% (MBIA                  2,058,000
                  Insurance Corp. INS), 9/1/2042
                     TOTAL                                                                                                 3,688,976
                  LOUISIANA-1.4%
    1,000,000     Louisiana State, Gasoline & Fuels Tax Revenue Bonds (Series 2006A), 4.75% (Louisiana State Gas &           982,250
                  Fuels)/(FSA INS), 5/1/2039
    1,000,000     St. John the Baptist Parish, LA, Revenue Bonds (Series 2007A), 5.125% (Marathon Oil Corp.),                960,280
                  6/1/2037
                     TOTAL                                                                                                 1,942,530
                  MARYLAND-0.2%
      300,000     Maryland State Health & Higher Educational Facilities Authority, Revenue Bonds (Series 2007A),             281,940
                  5.25% (King Farm Presbyterian Retirement Community), 1/1/2027
                  MASSACHUSETTS-2.2%
    1,000,000     Massachusetts HEFA, Revenue Bonds (Series 2003E), 6.75% (Jordan Hospital )/(Original Issue               1,051,180
                  Yield: 7.00%), 10/1/2033
    2,000,000     Massachusetts State Development Finance Agency, Revenue Bonds, 5.75% (Massachusetts College of           2,088,120
                  Pharmacy & Allied Health Sciences), 7/1/2033
                     TOTAL                                                                                                 3,139,300
                  MICHIGAN-2.2%
    2,000,000     Cornell Township MI, Economic Development Corp., Refunding Revenue Bonds, 5.875% (MeadWestvaco           2,182,080
                  Corp.)/(United States Treasury PRF 5/1/2012@100), 5/1/2018
    1,000,000     Detroit, MI Sewage Disposal System, Refunding Senior Lien Revenue Bonds (Series 2003A), 5.00%            1,024,310
                  (FSA INS), 7/1/2024
                     TOTAL                                                                                                 3,206,390
                  MINNESOTA-0.7%
      900,000     St. Paul, MN Port Authority, Hotel Facility Revenue Bonds (Series 2), 7.375% (Radisson Kellogg             955,035
                  Project)/(United States Treasury PRF 8/1/2008@103)/(Original Issue Yield: 7.50%), 8/1/2029
                  MISSISSIPPI-3.0%
    2,000,000     Lowndes County, MS Solid Waste Disposal, Refunding PCRBs (Series 1992B), 6.70% (Weyerhaeuser             2,268,680
                  Co.), 4/1/2022
    2,000,000     Mississippi Development Bank, Special Obligation Bonds (Series 2006A), 5.00% (Municipal Energy           2,008,240
                  Agency of Mississippi)/(XL Capital Assurance Inc. INS), 3/1/2041
                     TOTAL                                                                                                 4,276,920
                  MISSOURI-0.3%
      500,000     Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (Series 2003A),                481,475
                  5.50% (Branson, MO)/(Original Issue Yield: 5.56%), 12/1/2032
                  NEVADA-3.3%
      650,000   1 Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series                 663,884
                  2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%), 11/15/2034
    2,000,000     Nevada State, COPs (Series 2004: Capitol Complex Building 1), 5.00% (FGIC INS), 4/1/2032                 2,026,780
    2,000,000     Truckee Meadows, NV Water Authority, Water Revenue Bonds (Series 2001A), 5.00% (United States            2,092,020
                  Treasury PRF 7/1/2011@100)/(Original Issue Yield: 5.36%), 7/1/2025
                     TOTAL                                                                                                 4,782,684
                  NEW HAMPSHIRE-2.3%
    3,000,000     Manchester, NH School Facilities, Revenue Bonds, 5.50% (United States Treasury PRF                       3,251,340
                  6/1/2013@100), 6/1/2028
                  NEW JERSEY-1.7%
      500,000     New Jersey EDA, Revenue Bonds, (Series 2004), 5.75% (NJ Dedicated Cigarette Excise                         517,830
                  Tax)/(Original Issue Yield: 5.89%), 6/15/2029
      300,000     New Jersey EDA, Revenue Refunding Bonds (Series A), 5.80% (Winchester Gardens at Ward                      302,526
                  Homestead)/(Original Issue Yield: 5.82%), 11/1/2031
      600,000     New Jersey Health Care Facilities Financing Authority, Revenue Bonds, 6.50% (Pascack Valley                420,612
                  Hospital Association)/(Original Issue Yield: 6.72%), 7/1/2023
    1,000,000     New Jersey State Educational Facilities Authority, Revenue Bonds, Project C, 6.50% (Georgian             1,133,300
                  Court University)/(United States Treasury PRF 7/1/2013@100), 7/1/2033
                     TOTAL                                                                                                 2,374,268
                  NEW MEXICO-0.6%
      750,000 1,2 Jicarilla, NM Apache Nation, Revenue Bonds, 5.50%, 9/1/2023                                                789,090
                  NEW YORK-6.4%
      190,000     Amherst, NY IDA, Civic Facility Revenue Bonds (Series 2006A), 5.20% (Beechwood Health Care                 166,450
                  Center, Inc.), 1/1/2040
      750,000     Dutchess County, NY IDA, Civic Facility Revenue Bonds (Series 2004B), 7.50% (St. Francis                   811,275
                  Hospital and Health Centers), 3/1/2029
      750,000     Dutchess County, NY IDA, Revenue Bonds, 5.00% (Marist College)/(Original Issue Yield: 5.25%),              757,508
                  7/1/2022
    1,000,000     Metropolitan Transportation Authority, NY, MTA State Service Contract Revenue Refunding Bonds,           1,024,060
                  (Series A), 5.00% (New York State)/(FGIC INS)/(Original Issue Yield: 5.14%), 7/1/2022
    2,000,000     Metropolitan Transportation Authority, NY, Revenue Bonds (Series 2006A), 5.00% (MTA                      2,029,340
                  Transportation Revenue), 11/15/2031
      800,000   1 New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC),                 835,856
                  3/1/2035
    1,000,000     New York City, NY IDA, PILOT Revenue Bonds (Series 2006), 4.75% (Yankee Stadium LLC)/(MBIA                 960,600
                  Insurance Corp. INS), 3/1/2046
    2,000,000     New York State Dormitory Authority, Revenue Bonds (Series 2003A), 5.50% (Brooklyn Law                    2,066,240
                  School)/(Radian Asset Assurance INS), 7/1/2019
      530,000     New York State Dormitory Authority, Revenue Bonds (Series 2007B), 5.25% (Health Quest Systems,             550,591
                  Inc. Obligated Group)/(Assured Guaranty Corp. INS), 7/1/2027
                     TOTAL                                                                                                 9,201,920
                  NORTH CAROLINA-1.3%
    1,000,000     North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue Bonds (Series              1,019,640
                  2003C), 5.375% (Original Issue Yield: 5.57%), 1/1/2017
      800,000     North Carolina Medical Care Commission, Health Care Housing Revenue Bonds (Series 2004A), 5.80%            819,640
                  (Arc of North Carolina Projects), 10/1/2034
                     TOTAL                                                                                                 1,839,280
                  NORTH DAKOTA-1.5%
    2,000,000     Fargo, ND, Health System Revenue Bonds (Series 2000A), 5.60% (Meritcare Obligated Group)/(FSA            2,089,180
                  INS)/(Original Issue Yield: 5.70%), 6/1/2021
                  OHIO-0.7%
    1,000,000     Ohio State Air Quality Development Authority, PCR Refunding Bonds (Series 2002A), 6.00%                  1,005,120
                  (Cleveland Electric Illuminating Co.), 12/1/2013
                  OREGON-0.3%
      500,000   1 Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C), 5.625%,            494,670
                  10/1/2026
                  PENNSYLVANIA-3.8%
    1,165,000     Allegheny County, PA HDA, Health System Revenue Bonds (Series 2000B), 9.25% (West Penn Allegheny         1,375,259
                  Health System)/(United States Treasury PRF 11/15/2010@102)/(Original Issue Yield: 9.70%),
                  11/15/2030
      935,000     Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A),            1,090,575
                  7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF
                  1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
      360,000     Cumberland County, PA Municipal Authority, Retirement Community Revenue Bonds (Series 2002A),              419,900
                  7.25% (Wesley Affiliated Services, Inc. Obligated Group)/(United States Treasury PRF
                  1/1/2013@101)/(Original Issue Yield: 7.50%), 1/1/2035
    2,000,000     Montgomery County, PA Higher Education & Health Authority Hospital, Revenue Bonds (Series                2,035,060
                  2006FF1), 5.00% (Dickinson College)/(CDC IXIS Financial Guaranty NA INS), 5/1/2031
      500,000     Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series A), 6.00% (UPMC           531,205
                  Health System)/(Original Issue Yield: 6.16%), 1/15/2031
                     TOTAL                                                                                                 5,451,999
                  SOUTH CAROLINA-5.3%
    1,000,000     Clemson University, SC, University Revenue Bonds, 5.00% (XL Capital Assurance Inc. INS),                 1,023,260
                  5/1/2023
    2,000,000     Kershaw County, SC Public Schools Foundation, Installment Purchase Revenue Bonds (Series 2006),          2,035,440
                  5.00% (Kershaw County, SC School District)/(CDC IXIS Financial Guaranty NA INS), 12/1/2029
    1,940,000     Myrtle Beach, SC, Hospitality Fee Revenue Bonds (Series2004A), 5.375% (FGIC INS), 6/1/2023               2,059,931
    2,500,000     South Carolina Jobs-EDA, Health System Revenue Bonds (Series A), 5.625% (Bon Secours Health              2,539,725
                  System)/(Original Issue Yield: 5.84%), 11/15/2030
                     TOTAL                                                                                                 7,658,356
                  SOUTH DAKOTA-1.3%
    1,750,000     South Dakota State Health & Educational Authority, Revenue Bonds, 5.65% (Westhills Village               1,808,887
                  Retirement Community)/(Original Issue Yield: 5.75%), 9/1/2023
                  TENNESSEE-2.9%
    2,000,000     Johnson City, TN Health & Education Facilities Board, Hospital Revenue Refunding Bonds (Series           2,272,400
                  A), 7.50% (Mountain States Health Alliance), 7/1/2025
      270,000     Knox County, TN Health Education & Housing Facilities Board, Hospital Facilities Revenue Bonds,            279,706
                  6.50% (Baptist Health System of East Tennessee)/(Original Issue Yield: 6.625%), 4/15/2031
    1,535,000     Knox County, TN Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds         1,554,556
                  (Series 2003B), 5.75% (East Tennessee Children's Hospital)/(Original Issue Yield: 5.90%),
                  7/1/2033
                     TOTAL                                                                                                 4,106,662
                  TEXAS-10.8%
      600,000     Abilene, TX HFDC, Retirement Facilities Revenue Bonds (Series 2003A), 7.00% (Sears Methodist               646,212
                  Retirement )/(Original Issue Yield: 7.25%), 11/15/2033
      700,000     Decatur, TX Hospital Authority, Hospital Revenue Bonds (Series 2004A), 7.125% (Wise Regional               748,391
                  Health System), 9/1/2034
      385,000     HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at           364,329
                  Gleannloch Farms, Inc.), 2/15/2027
      585,000     HFDC of Central Texas, Inc., Retirement Facility Revenue Bonds (Series 2006A), 5.50% (Village at           538,738
                  Gleannloch Farms, Inc.), 2/15/2037
    1,400,000     Harlandale, TX ISD, UT GO School Building Bonds, 4.75% (GTD by PSFG)/(Original Issue Yield:              1,345,904
                  4.80%), 8/15/2040
    2,500,000     Houston, TX Combined Utility System, First Lien Revenue Refunding Bonds (Series 2004A), 5.25%            2,602,925
                  (FGIC INS), 5/15/2023
      200,000     Matagorda County, TX Navigation District No. 1, Collateralized Refunding Revenue Bonds, 5.60%              200,242
                  (Centerpoint Energy Houston Electric), 3/1/2027
    4,000,000     North Central Texas HFDC, Hospital Revenue Refunding Bonds (Series 2002), 5.25% (Children's              4,121,400
                  Medical Center of Dallas)/(AMBAC INS)/(Original Issue Yield: 5.35%), 8/15/2022
    1,350,000     North Central Texas HFDC, Retirement Facility Revenue Bonds (Series 1999), 7.50% (Northwest              1,478,547
                  Senior Housing Corp. Edgemere Project)/(United States Treasury PRF 11/15/2009@102)/(Original
                  Issue Yield: 7.75%), 11/15/2029
      500,000     Sabine River Authority, TX, PCR Refunding Bonds (Series 2001C), 5.20% (TXU Energy Co. LLC),                456,250
                  5/1/2028
    1,050,000     Sabine River Authority, TX, PCR Refunding Bonds (Series 2003B), 6.15% (TXU Energy Co. LLC),              1,062,295
                  8/1/2022
      335,000     Sabine River Authority, TX, Refunding PCRBs (Series 2003A), 5.80% (TXU Energy Co. LLC), 7/1/2022           333,650
      500,000     Tarrant County, TX Cultural Education Facilities Finance Corp., Revenue Bonds, (Series 2006A),             505,120
                  6.00% (Northwest Senior Housing Corp. Edgemere Project), 11/15/2036
    1,000,000     Tyler, TX HFDC, Hospital Revenue Bonds, 5.75% (Mother Frances Hospital )/(United States Treasury         1,095,090
                  PRF 7/1/2013@100)/(Original Issue Yield: 5.84%), 7/1/2027
                     TOTAL                                                                                                15,499,093
                  VIRGINIA-3.5%
    1,000,000     Broad Street CDA, VA, Revenue Bonds, 7.50% (Original Issue Yield: 7.625%), 6/1/2033                      1,080,560
    1,280,000     Hampton, VA Convention Center, Revenue Bonds, 5.125% (AMBAC INS), 1/15/2028                              1,305,613
    1,400,000     Peninsula Port Authority, VA, Residential Care Facility Revenue Bonds (Series 2003A), 7.375%             1,670,844
                  (Virginia Baptist Homes Obligated Group)/(United States Treasury PRF 12/1/2013@100)/(Original
                  Issue Yield: 7.625%), 12/1/2032
    1,000,000     Virginia Peninsula Port Authority, Coal Terminal Revenue Refunding Bonds (Series 2003), 6.00%            1,023,920
                  (Brinks Co. (The)), 4/1/2033
                     TOTAL                                                                                                 5,080,937
                  WASHINGTON-2.8%
    1,910,000     King County, WA Public Hospital District No. 1, Refunding LT GO Bonds, 5.00% (FSA INS)/                  1,972,915
                  (Original Issue Yield: 5.17%), 12/1/2021
    2,000,000     Washington State, Various Purpose UT GO Bonds (Series 2002A), 5.00% (FSA INS)/                           2,038,960
                  (Original Issue Yield: 5.09%), 7/1/2022
                     TOTAL                                                                                                 4,011,875
                  WISCONSIN-4.1%
    3,000,000     Wisconsin State HEFA, Health Facilities Revenue Bonds (Series A), 5.25% (Ministry Health                 3,055,410
                  Care)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 5.38%), 2/15/2032
      160,000     Wisconsin State HEFA, Revenue Bonds (Series 2004), 5.75% (Blood Center of Wisconsin,                       161,586
                  Inc.)/(Original Issue Yield: 5.82%), 6/1/2034
      500,000     Wisconsin State HEFA, Revenue Bonds, 6.50% (Tomah Memorial Hospital, Inc.)/(Original Issue                 515,815
                  Yield: 6.75%), 7/1/2023
      500,000     Wisconsin State HEFA, Revenue Bonds, 6.625% (Tomah Memorial Hospital, Inc.)/(Original Issue                515,635
                  Yield: 6.875%), 7/1/2028
    1,000,000     Wisconsin State HEFA, Revenue Bonds, 7.25% (Community Memorial Hospital)/(Original Issue Yield:          1,060,330
                  7.45%), 1/15/2033
      500,000     Wisconsin State HEFA, Revenue Bonds, (Series 2006A), 5.375% (Marshfield Clinic, WI), 2/15/2034             483,220
                     TOTAL                                                                                                 5,791,996
                     TOTAL MUNICIPAL BONDS                                                                               141,284,359
                     (IDENTIFIED COST $137,065,929)
                  SHORT-TERM MUNICIPALS--1.1%3
                  ALASKA-1.0%
    1,000,000     Valdez, AK Marine Terminal, (Series 2003B) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(GTD by BP           1,000,000
                  PLC), 3.940%, 9/4/2007
      500,000     Valdez, AK Marine Terminal, (Series 2003C) Daily VRDNs (BP Pipelines (Alaska) Inc.)/(GTD by BP             500,000
                  PLC), 3.940%, 9/4/2007
                     TOTAL                                                                                                 1,500,000
                  TENNESSEE-0.1%
      100,000     Sevier County, TN Public Building Authority, (Series IV-J-2) Daily VRDNs (Mt. Juliet, TN)/                 100,000
                  (AMBAC INS)/(JPMorgan Chase Bank, N.A. LIQ), 4.000%, 9/4/2007
                     TOTAL SHORT-TERM MUNICIPALS (AT COST)                                                                 1,600,000
                     TOTAL MUNICIPAL INVESTMENTS - 100%                                                                  142,884,359
                     (IDENTIFIED COST $138,665,929)4
                     OTHER ASSETS AND LIABILITIES - NET                                                                    (384,954)
                     LIQUIDATION VALUE OF AUCTION PREFERRED SHARES                                                      (53,675,000)
                     TOTAL NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS                                               $   88,824,405


     At August 31, 2007,  the fund holds no  securities  that are subject to the
     federal alternative minimum tax (AMT).

1    Denotes a restricted security that either: (a) cannot be offered for public
     sale without first being registered,  or being able to take advantage of an
     exemption  from  registration,  under the Securities Act of 1933; or (b) is
     subject to a contractual  restriction on public sales.  At August 31, 2007,
     these restricted securities amounted to $3,257,940,  which represented 2.3%
     of total market value.

2    Denotes a restricted  security that may be resold  without  restriction  to
     "qualified  institutional  buyers"  as  defined  in  Rule  144A  under  the
     Securities  Act of 1933 and that the Fund has determined to be liquid under
     criteria  established by the Fund's Board of Trustees.  At August 31, 2007,
     these liquid restricted securities amounted to $789,090,  which represented
     0.6% of total market value.

3    Current rate and next reset date shown for Variable Rate Demand Notes.

4    At August 31, 2007,  the cost of  investments  for federal tax purposes was
     $138,665,190.  The net unrealized  appreciation  of investments for federal
     tax purposes was $4,219,169.  This consists of net unrealized  appreciation
     from investments for those  securities  having an excess of value over cost
     of $5,564,958 and net unrealized  depreciation  from  investments for those
     securities having an excess of cost over value of $1,345,789.


    Note: The categories of investments are shown as a percentage of total
    market value at August 31, 2007.


INVESTMENT VALUATION
Market values of the Funds' portfolio securities are determined as follows:

   {circle}for fixed-income securities, according to prices as furnished by an
      independent pricing service, except that fixed-income securities with
      remaining maturities of less than 60 days at the time of purchase are
      valued at amortized cost;

   {circle}for investments in other open-end registered investment companies,
      based on net asset value;

   {circle}futures contracts and options are generally valued at market values
      established by the exchanges on which they are traded at the close of
      trading on such exchanges.  Options traded in the over-the-counter market
      are generally valued according to the mean between the last bid and the
      last asked price for the option as provided by an investment dealer or
      other financial institution that deals in the option.  The Board of
      Trustees (the "Trustees") may determine in good faith that another method
      of valuing such investments is necessary to appraise their fair market
      value;

   {circle}prices for total return swaps are based upon a valuation model
      determined by management incorporating underlying reference indexes,
      interest rates, yield curves and other market data or factors; prices for
      credit default swaps are furnished by an independent pricing service and
      are based upon a valuation model incorporating default probabilities,
      recovery rates and other market data or factors; prices for interest rate
      swaps are furnished by an independent pricing service and are based upon a
      valuation model incorporating interest rates, yield curves and other
      market data or factors; and

   {circle}for all other securities at fair value as determined in accordance
      with procedures established by and under the general supervision of the
      Trustees.

Prices for fixed-income securities furnished by a pricing service may be based
on a valuation matrix which incorporates both dealer-supplied valuations and
electronic data processing techniques. Such prices are generally intended to be
indicative of the bid prices currently offered to institutional investors for
the securities.  The Trustees have approved the use of such pricing services. A
number of pricing services are available, and the Fund may use various pricing
services or discontinue the use of any pricing service.

Prices provided by independent pricing services may be determined without
relying exclusively on quoted prices and may consider institutional trading in
similar groups of securities, yield, quality, stability, risk, coupon rate,
maturity, type of issue, trading characteristics, and other market data or
factors. From time to time, when prices cannot be obtained from an independent
pricing service, securities may be valued based on quotes from broker-dealers or
other financial institutions that trade the securities.


RESTRICTED SECURITIES

Additional information on restricted securities, excluding securities purchased
under Rule 144A that have been deemed liquid by the Trustees, held at August 31,
2007 is as follows:


SECURITY                                                                                       ACQUISITION DATE     ACQUISITION COST
                                                                                                                  
Capital Trust Agency, FL, Revenue Bonds (Series 2003A), 8.95% (Seminole Tribe of Florida
Convention and Resort Hotel Facilities)/(United States Treasury PRF 10/1/2012@102),
10/1/2033                                                                                          5/9/2003             $400,000
Cow Creek Band of Umpqua Tribe of Indians, Tax-Exempt Tax Revenue Bonds (Series 2006C),
5.625%, 10/1/2026                                                                                  6/9/2006             $500,000
Director of the State of Nevada Department of Business and Industry, Revenue Bonds (Series
2004A), 7.00% (Las Ventanas Retirement Community)/(Original Issue Yield: 7.125%),
11/15/2034                                                                                        12/23/2004            $639,925
New York City, NY IDA, Liberty Revenue Bonds (Series A), 6.50% (7 World Trade Center LLC),
3/1/2035                                                                                          3/15/2005             $800,000



    The following acronyms are used throughout this portfolio:

 AMBAC --American Municipal Bond Assurance Corporation
 CDA   --Community Development Authority
 COPs  --Certificates of Participation
 EDA   --Economic Development Authority
 EDFA  --Economic Development Finance Authority
 FGIC  --Financial Guaranty Insurance Company
 FSA   --Financial Security Assurance
 GO    --General Obligation
 GTD   --Guaranteed
 HDA   --Hospital Development Authority
 HEFA  --Health and Education Facilities Authority
 HFDC  --Health Facility Development Corporation
 IDA   --Industrial Development Authority
 IDB   --Industrial Development Bond
 INS   --Insured
 ISD   --Independent School District
 LIQ   --Liquidity Agreement
 LT    --Limited Tax
 PCR   --Pollution Control Revenue
 PCRBs --Pollution Control Revenue Bonds
 PRF   --Prerefunded
 PSFG  --Permanent School Fund Guarantee
 UT    --Unlimited Tax
 VRDNs --Variable Rate Demand Notes










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 (as
defined in rule 30a-3(c) under the Act) are effective in design and
operation and are sufficient to form the basis of the certifications required by
Rule 30a-(2) under the Act, based on their evaluation of these disclosure
controls and procedures within 90 days of the filing date of this report on Form
N-Q.

(b) There were no changes in the registrant's internal control over financial
reporting (as defined in rule 30a-3(d) under the Act) during the 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






SIGNATURES

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.

REGISTRANT  FEDERATED PREMIER MUNICIPAL INCOME FUND

BY          /S/ RICHARD A. NOVAK
            RICHARD A. NOVAK
            PRINCIPAL FINANCIAL OFFICER


DATE        OCTOBER 23, 2007


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/ J. CHRISTOPHER DONAHUE
            J. CHRISTOPHER DONAHUE
            PRINCIPAL EXECUTIVE OFFICER


DATE        OCTOBER 23, 2007


BY          /S/ RICHARD A. NOVAK
            RICHARD A. NOVAK
            PRINCIPAL FINANCIAL OFFICER


DATE        OCTOBER 23, 2007