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

                                 FORM 10-Q



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


For the quarterly period ended    March 31, 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)            dentification 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 11. 
<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>


                                                 
                                                  March 31,    December 31,
                                                    1997          1996    
<S>                                             <C>             <C>
Mortgage notes receivable, net of loan loss       
 reserve of $16,524,000 (Notes 2 and 3)         $ 6,965,980     $ 6,973,754
Cash and cash equivalents                         1,094,714       1,112,524 
Accrued interest receivable - mortgage notes,
 net of reserve for uncollectible interest of
 $12,803,469 and $12,225,634, respectively                        
 (Note 3)                                           131,121         115,272
Due from affiliates (Note 5)                          1,159         16,250  
Other asset                                           1,625          1,672

    Total assets                                $ 8,194,599    $ 8,219,472
                                                                             


                       LIABILITIES AND PARTNERS' EQUITY


Liabilities                                     $   12,765     $   25,274

Partners' equity (deficit) (Note 4):
  Limited Partners (30,059 Units outstanding)     8,399,621      8,411,861
  General Partners                                 (217,787)      (217,663)

    Total Partners' equity                        8,181,834      8,194,198

    Total liabilities and Partners' equity      $ 8,194,599    $ 8,219,472

</TABLE>
                  The accompanying notes are an integral
                     part of the financial statements.
<PAGE>

           KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                         STATEMENTS OF OPERATIONS
                                           

      
<TABLE>
<CAPTION>
                                                 
                                                 For the Three Months 
                                                    Ended March 31,   
                                                   1997          1996  

<S>                                              <C>           <C>
Interest income:
  Mortgage notes receivable (Notes 2 and 3)      $153,751      $156,375
  Cash equivalents                                 14,723        17,119

      Total revenue                               168,474       173,494

Expenses:
  Expense reimbursements (Note 5)                   7,427       12,953
  General and administrative                       21,598        17,951

      Total expenses                               29,025        30,904

Net income                                       $139,449      $142,590
                                                               
Allocation of net income (Note 4):

  Limited Partners (30,059 Units outstanding)    $138,055      $141,164

  Per Unit of Limited Partner Interest           $   4.59      $   4.70
                                                               
  General Partners                               $  1,394      $  1,426
</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 Three Months 
                                                         Ended March 31,  
                                                       1997          1996  
<S>                                                <C>             <C>
Operating activities:
  Net income                                       $  139,449      $  142,590
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Changes in assets and liabilities:
      Increase in accrued interest receivable -
       mortgage notes                                 (15,849)   (20,704)
      Decrease (increase) in due from affiliates       15,091   (110,729)

      Decrease in other assets                             47             78
      Decrease in liabilities                         (12,509)        (6,654)

        Net cash provided by operating
         activities                                   126,229          4,581

Investing activities:
  Principal collections from mortgage
   notes receivable                                     7,774          7,037
  Increase in other investments                           -         (471,218)

       Net cash provided by (used in)
        investing activities                            7,774       (464,181)

Financing activity:
  Distributions                                      (151,813)      (151,813)

Net decrease in cash and cash equivalents             (17,810)      (611,413)
 
Cash and cash equivalents, beginning of period       1,112,524      1,260,798

Cash and cash equivalents, end of period            $1,094,714     $  649,385
</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 March 31, 1997 and its results of
      operations and cash flows for the three months ended March
      31, 1997 and 1996.

      The results of operations for the three months ended March
      31, 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)   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:


                       KRUPP EQUITY LIMITED PARTNERSHIP
                           CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
                                            
                                    ASSETS
                                                  March 31,     December 31,
                                                    1997            1996    
     <S>                                        <C>             <C>    
     Real estate assets:
        Real estate, at cost                    $12,716,566     $ 12,716,122 
        Property valuation provision             (5,000,000)      (5,000,000)
        Accumulated depreciation                 (3,853,659)      (3,795,870)

           Total real estate assets               3,862,907        3,920,252
 
     Other assets                                   290,000          305,538

           Total assets                         $ 4,152,907     $  4,225,790
  


                       LIABILITIES AND PARTNERS' DEFICIT
                                                                
      Mortgage notes payable to the 
         Partnership                            $28,282,939      $28,290,713

     Notes payable to an affiliate                  300,000          300,000
     Accrued interest payable to an              
      affiliate (A)                               8,480,920        7,880,286
     Due to affiliates                              689,018          666,702
     Other liabilities                              356,537          386,780

           Total liabilities                     38,109,414       37,524,481

     Partners' deficit                          (33,956,507)     (33,298,691)

           Total liabilities and Partners'
             deficit                            $ 4,152,907       $4,225,790

</TABLE>
                       KRUPP EQUITY LIMITED PARTNERSHIP
                      CONDENSED STATEMENTS OF OPERATIONS
                                             
<TABLE>
<CAPTION>
                                                   For the Three Months  
                                                      Ended March 31,    
                                                   1997            1996  

     <S>                                        <C>            <C>
     Revenue (A)                                $  266,965     $  767,093
     Property operating expenses                  (127,414)      (382,819)

     Income before depreciation,
      amortization and interest                    139,551        384,274

     Depreciation and amortization (A)             (58,831)      (475,321)
     Interest                                     (738,536)      (875,732)

     Loss before gain on sale of property         (657,816)      (966,779)

     Gain on sale of property (A)                      -        1,475,910

     Net income (loss)                          $ (657,816)    $  509,131

</TABLE>
      (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.
          
(3)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.  Additionally, the Partnership has recorded cumulative
      provisions for uncollectible interest of $12,803,469 and $12,225,634 as
      of March 31, 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.

      
(4)   Summary of Changes in Partners' Equity
      
      A summary of changes in Partners' equity (deficit) for the three months
      ended March 31, 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                         138,055        1,394       139,449

     Distributions                     (150,295)      (1,518)     (151,813)

     Balance at March 31, 1997       $ 8,399,621  $(217,787)  $  8,181,834
</TABLE>
(5) 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 $1,159 and
      $16,250 at March 31, 1997 and December 31, 1996, respectively.


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. 
However, distributions are currently 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.  The retail centers have historically suffered
from an economic downturn in retail sales beginning in the late 1980s. 
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 there are advantages to
allowing KELP to continue to own the properties.

Operations

Total revenue slightly decreased for the three months ended March 31, 1997,
as compared to the three months ended March 31, 1996, as a result of the
decrease in interest income on mortgage notes due to reduced cash flow
interest payments received from KELP's properties.  The decrease in cash flow
received from the KELP properties can be attributed to the sales of Village
Green and North Salado in 1996.

Total expenses remained stable during the first quarter of 1997
as compared to the same period in 1996, as the decrease in
expense reimbursements offset the increase in general and
administrative expense.  The increase in general and
administrative expense in the first quarter of 1997, as compared
to the first quarter of 1996, is primarily due to an increase in
charges in connection with the preparation and mailing of
reports and other investor communications.

Distributable Cash from Operations

Distributable Cash from Operations, of approximately $140,000 and $143,000 at
March 31, 1997 and 1996, respectively, as defined by Section 5.01 of the
Partnership Agreement, is equivalent to the net income of the Partnership.

KELP's Results of Operations
    

The following table presents an analysis of KELP's cash deficit for the three
months ended March 31, 1997 and 1996:

<TABLE>
<CAPTION>
                                               For the Three Months
                                                  Ended March 31,   
                                                (Rounded to $1,000)  
                                                1997           1996    
  <S>                                       <C>          <C>
  Cash flow from properties before 
   mortgage debt service and capital        
  improvement expenditures and reserves     $ 161,000    $ 421,000

  First mortgage principal                     (30,000)    (204,000)

  Capital improvement expenditures                 -        (80,000)

  Capital improvement reserve contributions        -         (4,000)

  Cash flow from properties before 
   mortgage debt service to the Partnership    131,000      133,000

  Mortgage debt service to the Partnership    (131,000)    (133,000)

  KELP general and administrative expenses     (13,000)      (9,000)

     Cash deficit                            $ (13,000)   $  (9,000)
</TABLE>
<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.



DATE:  May 14 , 1997