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

                            FORM 10-Q

(Mark One)

     QUARTERLY REPORT PURSUANT TO SECTION 13
     OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934


For the quarterly period ended    June 30,
1997                                    

                     OR

     TRANSITION REPORT PURSUANT TO SECTION 13
     OR 15(d) OF THE SECURITIES EXCHANGE ACT
     OF 1934

For the transition period from                
        to                     


Commission file number         0-14378       



               Krupp Institutional Mortgage
Fund Limited Partnership          


            Massachusetts                     
             04-2860302          (State or
other jurisdiction of (IRS employer
incorporation or organization)               
     identification no.)

470 Atlantic Avenue, Boston, Massachusetts    
                  02210        
(Address of principal executive offices)     
                 (Zip Code)


                               (617) 423-2233 
                               
  (Registrant's telephone number, including
area code)

Indicate by check mark whether the registrant
(1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the
registrant was required to file such reports),
and (2) has been subject to such filing
requirements for the past 90 days.  Yes   X   
No      

The total number of pages in this document is
12.
<PAGE>
       PART I.  FINANCIAL INFORMATION

Item 1.FINANCIAL STATEMENTS

This Form 10-Q contains forward-looking
statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. 
Actual results could differ materially from
those projected in the forward-looking
statements as a result of a number of factors,
including those identified herein.

      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                         BALANCE SHEETS
                                      

                             ASSETS


<TABLE>
<CAPTION>
                                          June 30,  December 31,
                                            1997       1996    

Mortgage notes receivable, net of loan loss
  <S>                                   <C>           <C>
  reserve of $16,524,000 (Notes 3 and 4)$ 6,958,010   $ 6,973,754
Cash and cash equivalents (Note 2)        1,100,166     1,112,524 
Accrued interest receivable - mortgage notes,
  net of reserve for uncollectible interest of
  $13,391,566 and $12,225,634, respectively            
  (Note 4)                                  128,736      115,272
Due from affiliates (Note 6)                  -           16,250
Other assets                                  4,244        1,672

     Total assets                       $ 8,191,156 $  8,219,472
                                                    
                                                    


                LIABILITIES AND PARTNERS' EQUITY


Liabilities                                  17,504      25,274

Partners' equity (deficit) (Note 5):
Limited Partners (30,059 Units outstanding)8,391,520  8,411,861
  General Partners                         (217,868)   (217,663)

     Total Partners' equity               8,173,652   8,194,198

Total liabilities and Partners' equity  $ 8,191,156 $ 8,219,472


</TABLE>










             The accompanying notes are an integral
                part of the financial statements.

      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                      STATEMENTS OF INCOME
                                      

<TABLE>
<CAPTION>
     

  For the Three Months      For the Six Months
   Ended June 30,             Ended June 30,   
  1997        1996           1997      1996  
Interest income:
  Mortgage notes receivable 
  <S>                      <C>       <C>      <C>        <C>
  (Notes 3 and 4)          $151,169  $129,172 $304,920   $285,547
  Cash equivalents (Note 2)  15,363    28,738   30,086     45,857
  
  Total revenue             166,532   157,910  335,006   331,404

Expenses:
  Expense reimbursements 
     (Note 6)                 9,156    10,740  16,583    23,693
General and administrative  13,745     19,459   35,343   37,410

Total expenses              22,901     30,199   51,926   61,103

Net income                $143,631   $127,711 $283,080 $270,301


Allocation of net income 
     (Note 5):

  Limited Partners (30,059 
     Units outstanding)    $142,194  $126,434 $280,249  $267,598

Per Unit of Limited Partner$   4.73  $   4.20 $   9.32  $   8.90
                           
General Partners           $  1,437  $  1,277 $  2,831  $  2,703


</TABLE>















                                              






The accompanying notes are an integral
                part of the financial statements.
<PAGE>
      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                    STATEMENTS OF CASH FLOWS
                                       

<TABLE>
<CAPTION>
                                For the Six Months
                                   Ended June 30,     
                                  1997        1996    
Operating activities:
  <S>                                      <C>         <C>
  Net income                               $  283,080  $  270,301
  Adjustments to reconcile net income to
     net cash provided by operating activities:
       Changes in assets and liabilities:
          Decrease (increase) in accrued interest 
            receivable-mortgage notes         (13,464)      6,321
          Decrease in due from affiliates      16,250       1,081
          Increase in other assets             (2,572)    (5,806)
          Increase (decrease) in liabilities    (7,770)     3,048

               Net cash provided by operating
                 activities                   275,524     274,945

Investing activities:
  Principal collections from mortgage
     notes receivable                          15,744       -   
  Decrease in mortgage notes receivable         -       4,807,210
  Increase in other investments                 -        (471,218)

               Net cash provided by investing
                 activities                    15,744   4,335,992

Financing activity:
  Distributions                              (303,626) (5,096,534)

Net decrease in cash and cash equivalents     (12,358)   (485,597)

Cash and cash equivalents, beginning of period 1,112,524 1,260,798

Cash and cash equivalents, end of period   $ 1,100,166  $  775,201


</TABLE>



















             The accompanying notes are an integral
                part of the financial statements.
<PAGE>
      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                                     




(1)Accounting Policies

Certain information and footnote disclosures
normally included in financial statements
prepared in accordance with generally accepted
accounting principles have been condensed or
omitted in this report on Form 10-Q pursuant
to the Rules and Regulations of the Securities
and Exchange Commission.  In the opinion of
The Krupp Corporation and The Krupp Company
Limited Partnership-III ("Krupp Co.-III"), the
General Partners of Krupp Institutional
Mortgage Fund Limited Partnership (the
"Partnership"), the disclosures contained in
this report are adequate to make the
information presented not misleading.  See
Notes to Financial Statements in the
Partnership's Annual Report on Form 10-K for
the year ended December 31, 1996 for
additional information relevant to significant
accounting policies followed by the
Partnership.

In the opinion of the General Partners of the
Partnership, the accompanying unaudited
financial statements reflect all adjustments
necessary to present fairly the Partnership's
financial position as of June 30, 1997 and its
results of operations for the three and six
months ended June 30, 1997 and 1996 and cash
flows for the six months ended June 30, 1997
and 1996.  Certain prior year balances have
been reclassified to conform with current year
financial statement presentation.

The results of operations for the three and
six months ended June 30, 1997 are not
necessarily indicative of the results which
may be expected for the full year.  See
Management's Discussion and Analysis of
Financial Condition and Results of Operations
included in this report.

(2)Cash and Cash Equivalents
Cash and cash equivalents consisted of the
following:

<TABLE>

<CAPTION>
                                        June 30,    December 31, 
                                          1997          1996     

      <S>                             <C>           <C>
      Cash and money market accounts  $  306,843    $   316,317
      Commercial paper                   793,323        796,207
   
                                      $1,100,166    $ 1,112,524
</TABLE>
At June 30, 1997, commercial paper represents
corporate issues complying with Section 3.04
of the Partnership Agreement maturing in the
third quarter of 1997.  At June 30, 1997, the
carrying value of the Partnership's investment
in commercial paper approximates fair value.

(3)Krupp Equity Limited Partnership ("KELP")
                            
The Partnership made loans to KELP, an
affiliate of the Partnership, as provided
under the Master Loan Agreement and Collateral
Pledge Agreement.  The purpose of KELP is to
acquire, manage, operate and sell real estate
and personal property; and to borrow funds
from the Partnership and other sources to
finance the acquisition, management and
operation of real estate and personal property
related thereto.  Condensed financial
statements of KELP are as follows:


Continued
<PAGE>
      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

            NOTES TO FINANCIAL STATEMENTS, Continued
                                     

(3) Krupp Equity Limited Partnership ("KELP") - Continued

KRUPP EQUITY LIMITED PARTNERSHIP
                    CONDENSED BALANCE SHEETS
                                     
<TABLE>
<CAPTION>
                             ASSETS
                                          June 30,   December 31,
                                            1997         1996    
    Real estate assets:
      <S>                               <C>          <C>
      Real estate, at cost              $ 12,730,151 $ 12,716,122 
      Property valuation provision        (5,000,000)  (5,000,000)
      Accumulated depreciation            (3,911,653)  (3,795,870)

           Total real estate assets        3,818,498    3,920,252
 
      Other assets                           339,187      305,538

           Total assets                 $  4,157,685 $  4,225,790
 
                LIABILITIES AND PARTNERS' DEFICIT
                                                     
 Mortgage notes payable to the Partnership$ 28,274,969 $28,290,713
 Notes payable to an affiliate                 300,000     300,000
 Accrued interest payable to an         
    affiliate (A)                           9,073,836    7,880,286
 Due to affiliates                            703,414      666,702
 Other liabilities                            424,199      386,780

          Total liabilities                38,776,418   37,524,481

    Partners' deficit                      (34,618,733)(33,298,691)
          Total liabilities and Partners'
           deficit                      $    4,157,685 $ 4,225,790

</TABLE>
                KRUPP EQUITY LIMITED PARTNERSHIP
               CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
                                      
 For the Three Months              For the Six Months
     Ended June 30,                       Ended June 30,  
    1997      1996                      1997         1996    

<S>                    <C>         <C>       <C>       <C>
Revenue (A)(B)         $   638,551 $ 435,270 $ 905,516 $1,202,363
  Property operating
     expenses             (126,619) (183,791) (254,033) (566,610)
  Depreciation and
  amortization (A)(B)     (235,882) (189,862) (294,713) (665,183)
Interest (B)            (1,049,007) (781,299)(1,787,543)(1,657,031)

  Loss before gain on sale
     of properties and gain        
     on extinguishment of
     debtv             (772,957) (719,682) (1,430,773)(1,686,461)

  Gain on sale of 
     properties (A)       -       186,086      -        1,661,996

  Gain on extinguishment
     of debt (B)        108,711         -      108,711      -   

  Net loss           $  (664,246)$(533,596) $(1,322,062)$(24,465)
</TABLE>
Continued
<PAGE>
      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

            NOTES TO FINANCIAL STATEMENTS, Continued
                                     


(3)Krupp Equity Limited Partnership ("KELP") -
Continued

(A)On March 5, 1996, KELP sold Village Green
Apartments to an  unaffiliated third party for
$5,200,000.  On May 16, 1996, KELP sold North
Salado to an unaffiliated third party for
$7,350,000.  KELP remitted available sale
proceeds of $4,792,959 to the Partnership. 
For KELP's financial reporting purposes, sales
proceeds paid to KIMF of $4,792,959 were
applied against accrued interest in 1996.

(B) On May 13, 1997, KELP acquired all of the
beneficial interests in four Delaware business
trusts and a 99% member interest in a limited
liability company (collectively referred to as
the "Entities") for an aggregate purchase
price of $32,025,603.  KELP acquired the
Entities for cash of $3,309,761, subject to
their outstanding mortgage balances as of May
13, 1997, totaling $28,715,842.  KELP obtained
the cash used in the exchange through the
proceeds of a loan made by KCLP III ("KCLP III
Note"), its general partner and limited
partner.  Each of the Entities acquired owns
real property, which is net leased to a
national retail franchise.  On June 23, 1997,
KELP admitted KGP-II Inc. as a limited
partner.  Subsequently, on June 30, 1997, KELP
distributed its interests in the Entities to
KCLP III in full satisfaction of the KCLP III
Note and in exchange for its entire
partnership interest in KELP.  The promissory
notes due KIMF from KCLP III, which total
$2,767,388 and are pledged as collateral on
the participating promissory notes
("Participating Notes"), remain as an
obligation of KCLP III.

The above transactions had no effect on KELP's
net loss and there was no positive or negative
cash flow which resulted from the operations
of the Entities.  Accordingly, the transaction
had no impact on KELP's ability to make the
required quarterly cash flow payment to KIMF,
the holder of its Participating Notes, or its
ability to meet other obligations with respect
to the Participating Notes. 

(4)Provision for Credit Losses and Accrued
Interest Reserves

The General Partners of the Partnership have
recorded a cumulative provision for credit
losses of $16,524,000 on its mortgage notes
receivable as of June 30, 1997 and December
31, 1996.  Additionally, the Partnership has
recorded cumulative provisions for
uncollectible interest of $13,391,566 and
$12,225,634 as of June 30, 1997 and December
31, 1996, respectively.  These cumulative
provisions are recorded against the carrying
value of the assets in order to reflect
management's current estimates of the
underlying property values which, given the
inherent uncertainty of real estate valuation
in the current market, could differ from the
ultimate value obtained upon sale of such
properties.












Continued

      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

            NOTES TO FINANCIAL STATEMENTS, Continued
                                     


(5) Summary of Changes in Partners' Equity

    A summary of changes in Partners' equity (deficit) for the six
    months ended June 30, 1997 is as follows:
<TABLE>
<CAPTION>
                                                        Total
                               Limited      General    Partners' 
                               Partners      Partners     Equity 


 <S>                           <C>         <C>        <C>
 Balance at December 31, 1996  $8,411,861  $(217,663) $8,194,198
 Net income                       280,249      2,831     283,080
Distributions                     (300,590)   (3,036)  (303,626)
    Balance at June 30, 1997   $ 8,391,520  $(217,868)$8,173,652
</TABLE>

(6) Related Party Transactions

    The Partnership reimburses affiliates of the General Partners
    for certain expenses incurred in connection with the activities
    of the Partnership, including communications, bookkeeping and
    clerical work necessary in maintaining relations with Limited
    Partners, and accounting, tax and computer services necessary
    for the maintenance of the books and records of the
    Partnership.

    Due from affiliates consisted of expense reimbursements of
    $16,250 at December 31, 1996.
<PAGE>
KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP
                                     


Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management's Discussion and Analysis of
Financial Condition and Results of Operations
contains forward-looking statements including
those concerning Management's expectations
regarding the future financial performance and
future events.  These forward-looking
statements involve significant risk and
uncertainties, including those described
herein.  Actual results may differ materially
from those anticipated by such forward-looking
statements.

Liquidity and Capital Resources

Currently, the Partnership has sufficient
liquidity to meet its operating needs.  The
most significant capital need is distributions
to investors.  Distributions are dependent on
cash flow received from KELP's interest
payments on the Participating Notes, which are
based upon the cash flow of the underlying
properties.  Due to fluctuations in the cash
flow payments received from KELP and its
effect on the Partnership's liquidity, the
Partnership may need to periodically adjust
its distribution rate.  Therefore, sustaining
the current distribution rate is mainly
dependent upon the future cash flow payments
received from KELP.   

KELP's properties have not generated cash flow
sufficient to meet the terms of their existing
obligations.  Recently, the remaining
properties have maintained a consistent level
of operating cash flow.  The Partners of KELP
have made cumulative capital contributions of
approximately $4,673,000 to cover prior
operating deficits and have arranged for
certain short-term borrowings.  Additionally,
the affiliated management agent has not
received payment of management fees since
1991.  The General Partners of the Partnership
have not commenced foreclosure proceedings
because they have determined that, due to the
depressed state of the real estate market,
KELP would be unable to dispose of its
properties at other than unattractive prices. 
Thus, the General Partners believed that it
was in the Partnership's best interest to
continue to permit KELP to hold the properties
and attempt to increase cash flows and
selectively sell the properties, as market
values recover. 

Operations

Total revenue slightly increased for three and
six months ended June 30, 1997, as compared to
the three and six months ended June 30, 1996,
as a result of the increase in interest income
on mortgage notes due to higher cash flow
interest payments received from KELP's
properties.  This increase is partially offset
by a decrease in interest income attributable
to lower average cash and cash equivalents
available for investment.

Total expenses decreased for the three and six
months ended June 30, 1997, as compared to the
same periods in 1996, due to a decrease in
expense reimbursements. The decrease in
expense reimbursements is due to decreased
costs incurred in connection with the
preparation and mailing of reports and other
investor communications.
Distributable Cash from Operations

Distributable Cash from Operations, of
approximately $144,000 and $128,000 for the
three months ended June 30, 1997 and 1996,
respectively and $283,000 and $270,000 for the
six months ended June 30, 1997 and 1996,
respectively, as defined by Section 5.01 of
the Partnership Agreement, is equivalent to
net income of the Partnership.


Continued
KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED
PARTNERSHIP
                           



KELP Operations

Net loss, after giving effect to the sales of
Village Green Apartments and North Salado
Shopping Center and the acquisition and
distribution of the Entities (as described in
Note 3), remained stable for the three and six
months ended June 30, 1997, when compared to
the same periods in 1996, as total revenue and
total expenses remained relatively constant. 


<PAGE>



  KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED
PARTNERSHIP

         PART II - OTHER INFORMATION
                            


Item 1.Legal Proceedings
                                            
Response:  None

Item 2.Changes in Securities
                                            
Response:  None

Item 3.Defaults upon Senior Securities
                                            
Response:  None

Item 4.Submission of Matters to a Vote of
Security Holders
                                            
Response:  None

Item 5.Other Information
                                            
Response:  None

Item 6.Exhibits and Reports on Form 8-K
                                            
Response:  None







































<PAGE>


                  SIGNATURE



Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.



Krupp Institutional Mortgage Fund Limited
Partnership
                             (Registrant)
         BY:/s/Wayne H. Zarozny          
         Wayne H. Zarozny
         Treasurer and Chief Accounting 
Officer of The Krupp Corporation,
         a General Partner.


<PAGE>
DATE: August 14, 1997