]2               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 30,1998 
   

                     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>
                                          Unaudited
                                           June 30,  December 31,
                                             1998       1997    

Mortgage notes receivable, net of loan loss
  reserve of $0 and $15,851,013, respectively
  <S>                                    <C>         <C>
  (Notes 3 and 4)                        $      -    $ 7,614,449
Cash and cash equivalents (Note 2)         1,631,096   1,110,110 
Accrued interest receivable - mortgage notes,
  net of reserve for uncollectible interest of
  $0 and $14,638,760, respectively                   
  (Notes 3 and 4)                               -         83,585
Other assets                                  15,632       4,375

     Total assets                        $ 1,646,728 $ 8,812,519
                                                     

                LIABILITIES AND PARTNERS' EQUITY


Liabilities                              $    14,002 $    25,200

Partners' equity (deficit) (Note 5):
Limited Partners (30,059 Units outstanding)1,848,371   8,999,051
  General Partners                          (215,645)   (211,732)

     Total Partners' equity                1,632,726   8,787,319

Total liabilities and Partners' equity   $ 1,646,728 $ 8,812,519

</TABLE>














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

      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

                   STATEMENTS OF INCOME (LOSS)
                                      
(Unaudited)
<TABLE>
<CAPTION>
   
                           For the Three Months For theSixMonths
                              Ended June 30,      Ended June 30, 

                             1998      1997    1998       1997  
Interest income:
  Mortgage notes receivable 
  <S>                       <C>      <C>     <C>        <C>
  (Notes 3 and 4)           $  -     $151,169$  -       $304,920
  Cash equivalents           71,955    15,363  111,587    30,086
  
       Total income          71,955   166,532  111,587  335,006

Expenses:
  Expense reimbursements 
     (Note 6)                 5,325    9,156      2,374   16,583
  General and administrative 17,798   13,745     43,354   35,343
  Bad debt expense-mortgage 
     notes receivable (Note 4) -       -        305,364     -   

       Total expenses        23,123  22,901     351,092  51,926

Net income (loss)          $ 48,832  $143,631$(239,505)$283,080


Allocation of net income (loss)
     (Note 5):

  Limited Partners (30,059 
     Units outstanding)    $ 48,344  $142,194$(237,110)$280,249

  Limited Partner Interest Per
     Unit                  $   1.61  $   4.73$  (7.89)  $   9.32
                           
  General Partners         $    488  $  1,437$ (2,395)  $  2,831

</TABLE>
















                                              




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

                    STATEMENTS OF CASH FLOWS
                                       
(Unaudited)
<TABLE>
<CAPTION>
                                              For the Six Months
                                                  Ended June 30, 

                                                1998       1997  

Operating activities:
  <S>                                      <C>        <C>
  Net income (loss)                        $ (239,505)$  283,080
  Adjustments to reconcile net income (loss) to
     net cash provided by (used in) operating 
     activities:
       Changes in assets and liabilities:
          Decrease (increase) in accrued interest 
            receivable-mortgage notes          83,585    (13,464)
          Decrease in due from affiliates        -         16,250
          Increase in other assets            (11,257)    (2,572)
          Decrease in liabilities             (11,198)    (7,770)

               Net cash provided by (used in)
                 operating activities        (178,375)   275,524

Investing activities:
  Principal collections from mortgage
     notes receivable                       7,569,084      15,744
  Decrease in mortgage notes receivable        45,365        -   
  
               Net cash provided by investing
                 activities                 7,614,449      15,744

Financing activity:
  Distributions                            (6,915,088)  (303,626)

Net increase (decrease) in cash and cash 
  equivalents                                 520,986     (12,358)

Cash and cash equivalents, beginning of period 1,110,110 1,112,524

Cash and cash equivalents, end of period   $1,631,096  $1,100,166

</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, 1997 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, 1998 and its
results of operations for the three and six
months ended June 30, 1998 and 1997 and cash
flows for the six months ended June 30, 1998
and 1997.  Certain prior period balances have
been reclassified to conform with current
period financial statement presentation.

The results of operations for the three and
six months ended June 30, 1998 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, 
                                          1998          1997     

      <S>                             <C>           <C>
      Cash and money market accounts  $1,333,704    $   316,218
      Commercial paper                   297,392        793,892
   
                                      $1,631,096    $ 1,110,110
</TABLE>

   
(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 ("Agreements").  Pursuant to
the Agreements, the mortgage notes receivable
are cross collateralized by the KELP
properties.  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,
                                            1998         1997    
    Real estate assets:
      <S>                               <C>          <C>
      Real estate, at cost {A}          $       -    $ 12,810,945 
      Property valuation provision {B}          -    (3,995,696)
      Accumulated depreciation {A}             -       (4,036,553)

           Total real estate assets             -       4,778,696
 
    Other assets                                -         258,748

           Total assets                 $       -    $  5,037,444
 
                LIABILITIES AND PARTNERS' DEFICIT
                                                     
    Mortgage notes payable to the 
      Partnership {A}{C}                $       -    $ 28,258,421
    Notes payable to an affiliate {C}           -         300,000
    Accrued interest payable to an      
      affiliate {A}{C}                          -      10,290,445
    Due to affiliates {C}                       -         670,367
    Other liabilities {D}                       -         315,202

          Total liabilities                     -      39,834,435

    Partners' deficit                           -   (34,796,991)
      
          Total liabilities and Partners'
             deficit                    $       -    $ 5,037,444
</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,     
                          1998        1997   1998    1997    

  <S>                  <C>         <C>       <C>      <C>
  Revenue {A}          $     4,568 $638,551  $107,422 $905,516
  Property operating
  expenses {C}              (4,974)(126,619) (358,207)(254,033)
  Depreciation and
     amortization {A}         -      (235,882)  -     (294,713)
  Interest {A}                -    (1,049,007)  -  (1,787,543)

  Loss before gain on sale
     of properties and 
     extinguishment of
     debt                 (406)   (772,957)   (250,785) (1,430,773)

  Gain:
     Sale of properties{A}  -        -         171,625      -
     Extinguishment of 
       debt {C}               -     108,711   34,920,970    108,711

Net income (loss)      $   (406)$(664,246)$34,841,810$(1,322,062)
</TABLE>

Continued<PAGE>
      KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP

            NOTES TO FINANCIAL STATEMENTS, Continued
                                     

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

{A}Pursuant to its disposition strategy, KELP
sold its remaining properties on January 30,
1998 to unaffiliated third parties.  KELP's
properties were included in a package with
twelve other properties owned by affiliates of
KELP's General Partner.  The total selling
price of the fourteen properties was
$138,000,000, of which KELP received
$5,027,200 for the sale of its properties,
less its share of closing costs.  KELP used
the net sales proceeds of $4,778,696 to pay
down the mortgage notes payable to the
Partnership.  For financial reporting
purposes, KELP realized a gain of $171,625 on
the sale.  The gain was calculated as the
difference between the properties' selling
prices less net book value of the properties
and closing costs.

The sale of KELP's properties is considered
cause for dissolution of KELP, as defined by
KELP's Partnership Agreement.  Accordingly,
KELP's remaining liabilities of $374,243 were
transferred to its General Partner in the
second quarter of 1998.  Subsequently, KELP
distributed its remaining assets of $45,075 to
its partners.  In conjunction with the final
distribution, KELP was effectively dissolved.

As a result of the sale of KELP's properties,
certain notes totaling $2,790,388, pledged to
the Partnership under a Collateral Pledge
Agreement, were paid by the original General
Partners of KELP to the Partnership, on May
12, 1998.

{B}In accordance with Financial Accounting
Standard No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of", at December
31, 1997, KELP recorded a cumulative property
valuation provision of $3,995,696 based on the
selling prices of the properties less
estimated costs to sell.

{C}At March 31, 1998, KELP was released from
$34,920,970 of obligations with respect to the
mortgage notes and accrued interest payable to
an affiliate of $33,585,515, a demand note and
accrued interest payable to an affiliate of
$661,070 and expense reimbursements to an
affiliate of $674,385.  KELP recorded a gain
on extinguishment of debt which was equivalent
to the releases.

{D}KELP was named in a lawsuit filed during
1996, in which the plaintiff has stated a
claim for a brokerage commission in the amount
of $260,000 as a result of the sale of Village
Green Apartments.  In 1993, the plaintiff
fortuitously found a party interested in
purchasing Village Green Apartments from the
defendant, however, no purchase was ultimately
negotiated, as the prospective purchaser would
not meet KELP's asking price.  In October,
1995, negotiations were rekindled and KELP
entered into a purchase and sale agreement and
consummated the sale in March, 1996.  The
plaintiffs have filed suit seeking a full
commission, $260,000, calculated as 5% of the
selling price, related to the sale.  The
plaintiffs did not have a written brokerage
agreement and were not the procuring cause of
the ultimate sale of the property, however
they did introduce the parties to the ultimate
transaction.  The outcome of this litigation
cannot be presently determined, however KELP
recorded a provision of $260,000 which was
subsequently transferred to its General
Partner during the second quarter of 1998, as
discussed above.


Continued

  KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED
PARTNERSHIP

  NOTES TO FINANCIAL STATEMENTS, Continued
                           

(4)Bad Debt Expense, Provisions for Credit
Losses and Accrued Interest Reserves
                              
As of June 30, 1998, the General Partners of
the Partnership recognized bad debt expense on
its mortgage notes receivable of $305,364,
based on the difference between the net sales
proceeds received from the sale of KELP's
properties and the carrying values of the
loans.

At December 31, 1997, the General Partners of
the Partnership had  cumulative provisions for
credit losses of $15,851,013 recorded on its
mortgage notes receivable and $14,638,760
recorded as uncollectible interest on accrued
interest receivable.  These cumulative
provisions were recorded against the carrying
value of the assets in order to reflect
management's estimates of the underlying
property values.

(5)    Summary of Changes in Partners' Equity
<TABLE>
<CAPTION>
   A summary of changes in Partners' equity (deficit) for the six
   months ended June 30, 1998 is as follows:              Total
                                 Limited     General     Partners'
                                 Partners    Partners     Equity  

    <S>                         <C>         <C>        <C>
    Balance at December 31, 1997$ 8,999,051 $(211,732) $ 8,787,319
    Net loss                     (237,110)     (2,395)   (239,505)
    Distributions:
      Operations                (150,295)      (1,518)    (151,813)
      Capital transaction      (6,763,275)       -      (6,763,275)
    Balance at June 30, 1998   $ 1,848,371  $(215,645)$ 1,632,726
</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.
                                  <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

Pursuant to its disposition strategy, on
January 30, 1998 the General Partner of KELP
sold KELP's remaining properties to
unaffiliated third parties.  KELP's properties
were included in a package with twelve other
properties owned by affiliates of KELP's
General Partner.  The total selling price of
the fourteen properties was $138,000,000, of
which KELP received $5,027,200 for the sale of
its properties, less its share of the closing
costs.  KELP used the net proceeds from the
sale to pay down the mortgage notes payable to
the Partnership (see Note 3).  The sale of
KELP's properties is considered cause for
Dissolution of KELP, as defined by KELP's
Partnership Agreement.  Accordingly, KELP's
remaining liabilities were transferred to its
General Partner and its remaining assets
distributed to its  partners in the second
quarter of 1998.  In conjunction with the
final distribution, KELP was effectively
dissolved.

As a result of the sale of KELP's properties,
certain notes totaling $2,790,388, issued by
the original General Partners of KELP, which
had been pledged to the Partnership under a
Collateral Pledge Agreement, were paid to the
Partnership by the original General Partners
of KELP on May 12, 1998. 

As of June 30, 1998, the General Partners of
the Partnership recognized bad debt expense on
its mortgage notes receivable of $305,364,
based on the difference between the net sales
proceeds received from the sale of KELP's
properties and the carrying values of the
loans.

The sale of KELP's properties and the
subsequent pay down of the Partnership's
mortgage notes receivable, together represent
an Event Causing Dissolution, as defined by
the Partnership Agreement. 

On May 15, 1998, the Partnership made a
special distribution of $225 per Unit  based
upon approximately 80% of the proceeds of the
sale and estimated liquidation value of
remaining Partnership assets.  Once all
necessary reserves and contingent liabilities
are funded, the remaining proceeds will be
distributed.  All Partnership affairs are
expected to be completed by year-end.

Operations

Net income, net of bad debt expense from
mortgage notes receivable, decreased for the
three and six months ended June 30, 1998 when
compared to the same periods in 1997,
primarily due to the decrease in total income.


Total income decreased during the three and
six months ended June 30, 1998, as compared to
the three and six months ended June 30, 1997,
due to a decrease in interest income on
mortgage notes receivable as a result of the
sale of KELP's properties (see Note 3).  This
decrease was partially offset by an increase
in interest income earned on cash equivalents
as a result of higher cash and cash equivalent
balances available for investment. 


Continued
KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED PARTNERSHIP
                                      

Operations, Continued

Total expenses for the three months ended June
30, 1998 as compared to the three months ended
June 30, 1997 remained stable.

Total expenses, net of bad debt expense from
mortgage notes receivable, decreased when
comparing the six months ended June 30, 1998
to the six months ended June 30, 1997,
primarily due to lower expense reimbursements
incurred in connection with the preparation
and mailing of Partnership reports and other
investor communications.
<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: August 11, 1998