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    March 31,
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
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,
                                            1998       1997    

Mortgage notes receivable, net of loan loss
 reserve of $0 and $15,851,013, respectively
 <S>                                    <C>         <C>
 (Notes 3 and 4)                        $  2,790,388$ 7,614,449
Cash and cash equivalents (Note 2)         5,825,345  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                                   7,119      4,375

   Total assets                         $  8,622,852$ 8,812,519
                                                                


                LIABILITIES AND PARTNERS' EQUITY

Due to affiliates (Note 6)              $    266,716$      -
Other liabilities                              8,967       25,200

   Total liabilities                         275,683     25,200

Partners' equity (deficit) (Note 5):
Limited Partners (30,059 Units outstanding)8,563,302  8,999,051
 General Partners                           (216,133)   (211,732)

     Total Partners' equity                8,347,169  8,787,319
Total liabilities and Partners' equity  $  8,622,852$ 8,812,519



</TABLE>









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

                   STATEMENTS OF INCOME (LOSS)
                                      
<TABLE>
<CAPTION>
     

                                         For the Three Months 
                                            Ended March 31,   
                                            1998      1997  

Interest income:
<S>                                      <C>        <C>
Mortgage notes receivable (Notes 3 and 4)$    -     $153,751
 Cash equivalents                           39,632    14,723
Other income                                 2,951      -   

     Total income                           42,583   168,474

Expenses:
 Expense reimbursements (Note 6)              -        7,427
 General and administrative                 25,556    21,598
 Bad debt expense-mortgage notes 
   receivable (Note 4)                     305,364      -   

     Total expenses                        330,920    29,025

Net income (loss)                        $(288,337) $139,449
                                                    
Allocation of net income (loss) (Note 5):

 Limited Partners (30,059 Units outstanding)$(285,454)$138,055

 Limited Partner Interest Per Unit       $   (9.50)$   4.59
                                                    
 General Partners                        $  (2,883) $  1,394

                           


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

                    STATEMENTS OF CASH FLOWS
                                       


                                             For the Three Months 
                                                Ended March 31,  
 
                                              1998        1997   
Operating activities:
 Net income (loss)                        $  (288,337)$  139,449
 Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
   Changes in assets and liabilities:
   Decrease (increase) in accrued interest
        receivable - mortgage notes            83,585     (15,849)
      Decrease in due from affiliates            -         15,091
      Increase in due to affiliates           266,716        -
      Decrease (increase) in other assets     (2,744)         47
      Decrease in other liabilities           (16,233)   (12,509)

        Net cash provided by operating
           activities                          42,987     126,229

Investing activities:
 Decrease in mortgage notes receivable         45,365        -
 Principal collections from mortgage
   notes receivable                         4,778,696       7,774

        Net cash provided by investing
           activities                       4,824,061       7,774
     
Financing activity:
 Distributions                               (151,813)  (151,813)

Net increase (decrease) in cash and cash
 equivalents                                4,715,235     (17,810)
 
Cash and cash equivalents, beginning of period1,110,110 1,112,524

Cash and cash equivalents, end of period  $ 5,825,345  $1,094,714



</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 March 31, 1998 and
its results of operations and cash flows for
the three months ended March 31, 1998 and
1997.

The results of operations for the three months
ended March 31, 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>
                                          March 31,  December 31,
                                            1998         1997    

       <S>                              <C>          <C> 
       Cash and money market accounts   $  5,528,311 $    316,218
       Commercial paper                      297,034      793,892
                                        $  5,825,345 $  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 receivables
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
                                          March 31,  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                            422,151       258,748

         Total assets                   $   422,151  $  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          
      affiliates {A}{C}                        -       10,290,445
    Due to affiliates {C}                      -          670,367
    Other liabilities {D}                   376,926       315,202

         Total liabilities                  376,926    39,834,435

    Partners' equity (deficit)              45,225   34,796,991)

         Total liabilities and Partners'
           equity (deficit)             $   422,151  $ 5,037,444


                KRUPP EQUITY LIMITED PARTNERSHIP
               CONDENSED STATEMENTS OF OPERATIONS
                                      
                                           For the Three Months  
                                              Ended March 31,    
                                            1998        1997  

    Revenue {A}                         $   102,854 $  266,965
    Property operating expenses {C}        (353,233)  (127,414)
    Depreciation and amortization {A}          -       (58,831)
    Interest {A}                               -      (738,536)

    Loss before gain on sale of properties
      and extinguishment of debt           (250,379)  (657,816)

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

    Net income (loss)                   $34,842,216 $ (657,816)
</TABLE>

Continued
      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 General Partner expects to liquidate
KELP in 1998.

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,
subsequent to March 31, 1998 (see Note 7).

{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 the
Partnership has recorded a provision of
$260,000 at March 31, 1998.
                                          





Continued
  KRUPP INSTITUTIONAL MORTGAGE FUND LIMITED
PARTNERSHIP

  NOTES TO FINANCIAL STATEMENTS, Continued
                           

(4)Bad Debt Expense, Provision for Credit
Losses and Accrued Interest Reserves
                              
At March 31, 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
                                          
A summary of changes in Partners' equity
(deficit) for the three months ended March 31,
1998 is as follows:
                                            
                                           
Limited              General      Partners'
Partners             Partners      Equity  

Balance at December 31, 1997    
$ 8,999,051       $(211,732)$ 8,787,319  

Net loss  (285,454)    (2,883)     (288,337)

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

Balance at March 31, 1998
$ 8,563,302         $(216,133)  $ 8,347,169

(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 to affiliates consisted of expense
reimbursements of $266,716 at March 31, 1998.

(7)Subsequent Event

On May 12, 1998, the original General Partners
of KELP remitted $2,790,388, to the
Partnership, as per the Collateral Pledge
Agreement discussed in Note 3.<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
General Partner expects to liquidate KELP in
1998.

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 by the
original General Partners of KELP subsequent
to year-end (see Note 7). 

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. 

The Partnership anticipates making a special
distribution of $225 per Unit in the second
quarter of 1998, 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 months ended March 31, 1998 when
compared to the same period in 1997, as total
revenue decreased and total expenses remained
relatively stable.

Total revenue decreased during the three
months ended March 31, 1998, as compared to
the three months ended March 31, 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.  KELP's net
sales proceeds of $4,778,696 were used to pay
down the mortgage notes payable to the
Partnership.  

Total expenses, net of bad debt expense from
mortgage notes receivable, remained relatively
stable when comparing the first three months
of 1998 to the first three months of 1997.




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
                                 
(a)Exhibits
                                            
Response:  None

(b)Reports on Form 8-K

  Date  Event Reported Financial Statements
Filed

January 30, 1998 Disposition of properties Pro
Forma Balance Sheet at September 30, 1997.

Pro Forma Statements of Income (Loss) for the
nine months ended September 30, 1997 and for
the year ended December 31, 1996.













<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, 1998