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 THEx
             SECURITIES EXCHANGE ACT OF 1934

   For the quarterly period ended    September 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          0-19244        


                          Krupp Government Income Trust


    Massachusetts                                              04-3089272
   (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   
     
<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 offactors,
including those identified herein.



<TABLE>
                                    KRUPP GOVERNMENT INCOME TRUST
<CAPTION>
                                           BALANCE SHEETS
                                                        

                                               ASSETS
                                                            September 30,  December 31,
                                                                1997           1996    

          <S>
          Participating Insured Mortgage Investments
           ("PIMIs") (Note 2):
          <S>                                               <C>            <C>
          PIMs                                              $108,602,747   $114,625,179
          Additional Loans                                    19,209,108     20,749,108
          Participating Insured Mortgages ("PIMs")(Note 2)    48,222,738     48,479,897
          Mortgage-Backed Securities and insured mortgage 
           ("MBS") (Note 3)                                   28,116,909     26,754,326
                Total mortgage investments                   204,151,502    210,608,510

          Cash and cash equivalents                           10,006,450     19,053,931
          Interest receivable and other assets                 1,321,794      1,707,799
          Prepaid acquisition fees and expenses, net of
           accumulated amortization of $7,576,043 and
           $6,090,173, respectively                            5,897,316      7,383,186
          Prepaid participation servicing fees, net of
           accumulated amortization of $2,135,239 and
           $1,610,677, respectively                            2,355,766      2,880,328

                Total assets                                $223,732,828   $241,633,754

                                LIABILITIES AND SHAREHOLDERS' EQUITY

          Deferred income on Additional Loans(Note 4)       $  7,692,023   $  7,325,414
          Other liabilities                                       18,172         27,733
                Total liabilities                              7,710,195      7,353,147

          Shareholders' equity (Note 5):
            Common stock, no par value; 17,510,000
            shares authorized and 15,053,135 shares
            issued and outstanding                           214,580,907    233,015,255

            Unrealized gain on MBS                             1,441,726      1,265,352

                Total Shareholders' equity                   216,022,633    234,280,607

                Total liabilities and Shareholders'
                 equity                                     $223,732,828   $241,633,754


</TABLE>
                                                 -2-
<PAGE>



                               The accompanying notes are an integral
                                  part of the financial statements





<TABLE>
                                    KRUPP GOVERNMENT INCOME TRUST
<CAPTION>
                                        STATEMENTS OF INCOME
                                                        

                                            For the Three Months Ended For the Nine Months Ended
                                                  September 30,               September 30,     

                                               1997          1996         1997          1996
     <S>     
     Revenues:
       Interest income - PIMs and PIMIs:
     <S>                                     <C>          <C>          <C>         <C>
     Base interest (Note 2)                  $2,981,872   $3,141,595   $ 9,201,061 $ 9,751,102
         Additional Loan Interest               123,173         -          771,918        -
         Participation income                    37,089       12,905     1,385,481     159,161
     Interest income - MBS                      558,426      562,753     1,658,847   1,765,401
       Other interest income                    250,855      243,792       841,369     639,279

         Total revenues                       3,951,415    3,961,045    13,858,676  12,314,943

     Expenses:
       Asset management fee to an affiliate     384,251      397,816     1,148,936   1,209,192
       Expense reimbursements to affiliates      95,646      107,745       300,288     299,370
       Amortization of prepaid expenses,
        fees and organization costs           1,220,007      395,213     2,010,432   1,218,453
     General and administrative                  78,406       59,589       307,662     244,975

         Total expenses                       1,778,310      960,363     3,767,318   2,971,990

     Net income                              $2,173,105   $3,000,682   $10,091,358 $ 9,342,953

     Earnings per share                      $      .14   $      .20   $       .67 $       .62

     Weighted average shares outstanding             15,053,135                  15,053,135


</TABLE>


                                                -4-
<PAGE>

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





<TABLE>
                                   KRUPP GOVERNMENT INCOME TRUST
<CAPTION>
                                      STATEMENTS OF CASH FLOWS
                                                        

                                                                For the Nine Months Ended
                                                                     September 30,       

                                                                  1997            1996   
     <S>                 
     Operating activities:
     <S>                                                      <C>             <C>
     Net income                                               $10,091,358     $ 9,342,953
     Adjustments to reconcile net income to net cash
        provided by operating activities:
         Amortization of discounts and premiums                     4,026          (3,718)
         Amortization of prepaid expenses, fees and 
          organization costs                                    2,010,432       1,218,453 
         Changes in assets and liabilities:
            Decrease in interest receivable and other assets      386,005         255,399
            Increase (decrease) in other liabilities               (9,561)            283

                Net cash provided by operating 
                 activities                                    12,482,260      10,813,370

     Investing activities:
       Principal collections on MBS                             2,175,765       3,468,106
       Principal collections on PIMs                              648,606         641,118
       Acquisition of insured mortgage                         (3,366,000)           -
       PIM prepayment                                           5,630,985       8,862,450
       Collection of Additional Loan                            1,540,000            -
       Increase in deferred income on Additional
        Loans                                                     366,609         968,530

                Net cash provided by investing
                 activities                                     6,995,965      13,940,204

     Financing activity:
       Dividends                                              (28,525,706)    (14,676,822)

     Net increase (decrease) in cash and
      cash equivalents                                         (9,047,481)     10,076,752

     Cash and cash equivalents, beginning of period            19,053,931       8,914,295

     Cash and cash equivalents, end of period                 $10,006,450     $18,991,047

</TABLE>


                                                -6-
<PAGE>


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




                          KRUPP GOVERNMENT INCOME TRUST

                          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 andExchange 
 Commission.  However, in the opinion of Berkshire Mortgage
 Advisors Limited Partnership (the "Advisor") of Krupp Government
 Income Trust (the "Trust"), the disclosures contained in this report
 are adequate to make the information presented not misleading. 

 The Trust accounts for all of its investments in Mortgage Backed
 Securities, including those that are part of a PIM or PIMI investment,
 in accordance with Financial Accounting Standards No. 115,  Accounting
 for Certain Investments in Debt and Equity Securities. 

 The Federal Housing Administration Participating Insured Mortgages and
  all Additional Loans are carried at cost less principal payments
  unless the Advisor of the Trust believes there is an impairment in
  value, in which case a valuation allowance is  established in
  accordance with Financial Accounting Standards No. 114,  Accounting by
  Creditors for Impairment of a Loan,  and Financial Accounting StandardNo. 
  118, Accounting by Creditors for Impairment of a Loan - Income
  Recognition and Disclosures.   

  See Notes to Financial Statements in the Trust s Form 10-K for the
  year ended December 31, 1996 for additional information relevant to
  significant accounting policies followed by the Trust.

  In the opinion of the Advisor of the Trust, the accompanying unaudited
  financial statements reflect all adjustments (consisting of only
  normal recurring accruals) necessary to present fairly the Trust's
  financial position as of September 30, 1997, the results of its
  operations for the three and nine months ended September 30, 1997 and
  1996 and its cash flows for the nine months ended September 30, 1997
  and 1996.

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

   2.  PIMs and PIMIs

  On February 6, 1997, the Trust, with the approval of the independent
  Trustees, agreed to a workout with the borrower of the Windward Lakes
  Apartments PIMI, an affiliate of the Advisor of the Trust.  The terms
  are as follows: a) interest rate relief for 1997 of 2% per annum and
  1% per annum for 1998 through 2000 on the insured mortgage: b) the
  borrower, McNab KC-3 L.P. ( McNab ), contributed $133,036 of new
  equity into the property; c) the borrower will cap the annual
  management fee paid to an affiliate at 3% of revenues; d) the Trust s
  participation in current operations shall be 50% of Surplus Cash as
  determined under HUD guidelines; e) Base Interest on the Additional

                                       -8-
<PAGE>


Loan if payable from Trust s share of Surplus Cash and unpaid amounts accrue
at 7.5% per annum; and f) the Trust s participation in a sale or refinancing,
after repayment of the first mortgage and additional loans, interest
rate relief, accrued Base Interest and McNab s new equity, shall be
50% of any remaining proceeds up to an amount which would result in
the Trust having received a cumulative, noncompounded preferred return
of 10% on its investment in the first mortgage and additional loans;
any remaining proceeds shall be distributed to McNab.

During the first quarter the Trust received proceeds from the
prepayment of The Timber Ridge Apartments PIMI as follows: $1,540,000
to payoff the Additional loan; $1,246,159 representing additional
interest; $5,630,985 to payoff the outstanding first mortgage
principal balance.  During the third quarter, the Trust made a special
dividend of $.92 per share to it s investors.  This special
distribtuion consisted of the 1996 Canyon Ridge PIM prepayment and the
1997 Timber Ridge prepayment proceeds, net of the reinvestment of
$3,400,000 in a face value insured multifamily mortgage.

3.  MBS

During the first quarter of 1997, the Trust acquired a $3,400,000 face
value  insured multi-family mortgage for $3,366,000 having a coupon
rate of 7.625% per annum and a maturity of April 2032.

At September 30, 1997, the Trust s MBS portfolio has an amortized cost
of approximately $26,675,183 and unrealized gains of $1,441,726.  The
MBS portfolio has maturities ranging from 2008 to 2029.

4.  Related Party Transactions
During the three and nine months ended September 30, 1997, the Trust
earned $334,085 and $356,794, respectively, of interest on Additional
Loans  and Shared Interest Income from affiliates of the Advisor as
compared to $57,739 and $208,152 during the three and nine months
ended September 30, 1996, respectively.

5.  Changes in Shareholders' Equity

A summary of changes in shareholders' equity  for the  nine  months ended
September 30, 1997 is as follows:


<TABLE>
                                                                                     Total
<CAPTION>
                                         Common        Retained   Unrealized     Shareholders'
                                          Stock        Earnings       Gain          Equity   
           <S>        
           Balance at December 31, 
           <S>                        <C>           <C>           <C>            <C>
           1996                       $233,015,255  $     -       $ 1,265,352    $234,280,607
           Net income                       -         10,091,358        -          10,091,358

           Dividends                   (18,434,348)  (10,091,358)       -         (28,525,706)

           Change in unrealized
              gain on MBS                   -             -           176,374         176,374


           Balance at September 30,
           1997                       $214,580,907  $     -       $ 1,441,726    $216,022,633

</TABLE>




<PAGE>





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

  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
     
      The most significant demand on the Trust s liquidity is dividends paid
   to investors of approximately $4.9 million per quarter.  The Trust
   currently has an annual dividend rate of $1.30 per share,  paid in
   quarterly installments of $.325 per share.  Funds for dividends come from
   interest income received on PIMs, PIMIs, MBS,  cash and cash equivalents
   net of operating expenses, and the principal collections received on PIMs,
   PIMIs and MBS.  The portion of dividends funded from principal collections
   reduces the capital resources of the trust.  As the capital resources of
   the Trust decrease, the total cash flows to the Trust will also decrease
   which may result in periodic adjustments to the dividends paid to the
   investors.

      The Trust s investments in PIMs and PIMIs, in addition to providing
   guaranteed or insured monthly principal and interest payments, may provide
   the Trust with additional income through participation in the cash
   generated by the operations of the underlying properties and a portion of
   the appreciation realized upon the sale or refinancing of the underlying
   properties.  The Trust s participation interests and the interest payments
   on the Additional Loan portion of the PIMIs are neither insured nor
   guaranteed and will depend primarily on the successful operation of the
   underlying properties.  Seven of the Trust s nine PIMIs funded the
   construction of multi-family housing, which require time to achieve
   stabilized operations following completion of construction.  With this in
   mind, the Trust required the borrowers to establish reserves and escrows
   with Additional Loan proceeds to provide funds for the Additional Loan
   base interest payments during the construction and lease-up periods.  As
   these reserves become depleted, full payment of the Additional Loan base
   interest will depend primarily on whether the underlying property can
   generate sufficient operating cash flow.

      For 1997, Coconut Palm, Mountain View, Red Run and The Seasons have
   sufficient escrows to make the required Additional Loan base interest
   payments if operations cannot support such payments.  Management is
   closely monitoring the operating performances of the remaining properties. 
   Overall, the Trust s ability to meet its objectives will depend primarily
   on the operating performance of the properties underlying the PIMs and
   PIMIs.  During 1997, three Florida properties faced stiff competition from
   new product entering the market.  Two properties, Lifestyles and Windward
   Lakes, are operating with assistance of debt service relief from the
   Trust.  A third, Coconut Palm Club, still has deficit reserves available
   to cover operating shortfalls.  Lifestyles  operating performance has
   improved under the new management team that took over property operations
   during the third quarter of 1996 when the Trust agreed to provide debt
   service relief.  Although occupancy has stabilized this year in the low
   90% range, concessions offered to attract residents to newly built
   apartments limits management s ability to implement rental rate increases. 
   In addition to the Trust s debt service relief, property ownership also
   has contributed additional funds to cover shortfalls as it had agreed to
   do under the terms of the workout.  Debt service relief is scheduled to
   expire at the end of 1997, but the Trust expects to extend the workout for
   another year while the market stabilizes.  Both Windward Lakes and Coconut
   Palm Club have experienced an increase in vacancy during the third quarter
   to the 11% range as the Broward County Florida market has become more
   saturated with newly built apartment properties.

      During the first quarter of 1997 the Trust received a prepayment of The
   Timber Ridge Apartments PIMI.  The Trust received $1,540,000 to payoff the
   Additional Loan and $1,246,159 representing additional interest and
   $5,630,985 to payoff the outstanding first mortgage principal balance.

      During the third quarter, the Trust made a special dividend of $.92 per
   share to it s investors.  This special distribution consisted of the 1996
   Canyon ridge PIM prepayment and the 1997 Timber Ridge prepayment proceeds,
   net of the reinvestment of $3,400,000 face value insured multifamily
   mortgage.

      For the first five years of the PIMIs the borrowers are prohibited from
   repaying.  For the second five years, the borrowers can repay the loans and
   pay the greater of a prepayment penalty or all participation interest for
   PIMs, or by paying all amounts due under the PIMIs and satisfying the
   required preferred return.  The participation features and Additional Loans
   are neither insured nor guaranteed and if repayment of a PIM or PIMI
   results from foreclosure on the underlying property or an insurance claim
   the Trust would not receive any participation interest or any amounts due
   under the Additional Loan.  The Trust has the option to call PIMs and PIMIs
   by accelerating their maturity if the loans are not repaid by the tenth
   year after permanent funding.  The Trust will determine the merits of
   exercising the call option for each PIM or PIMI as economic conditions
   warrant.  Such factors as the condition of the asset, local market
   conditions, interest rates and available financing will have an impact on
   this decision.

   Assessment of Credit Risk

   The Trust's investments in mortgages are guaranteed or insured by the
   Federal National Mortgage Association ("FNMA"), the Federal Home Loan
   Mortgage Corporation ("FHLMC"), the Government National Mortgage
   Association ("GNMA") and the Department of Housing and Urban Development
   ("HUD") and therefore the certainty of their cash flows and the risk of
   material loss of the amounts invested depends on the creditworthiness of
   these entities.

   FNMA is a federally chartered private corporation that guarantees
   obligations originated under its programs.  FHLMC is a federally
   chartered corporation that guarantees obligations originated under its
   programs and is wholly-owned by the twelve Federal Home Loan Banks. 
   These obligations are not guaranteed by the U.S. Government or the
   Federal Home Loan Bank Board.  GNMA guarantees the full and timely
   payment of principal and basic interest on the securities it issues,
   which represents interest in pooled mortgages insured by HUD. 
   Obligations insured by HUD, an agency of the U.S. Government, are backed
<PAGE>

   by the full faith and credit of the U.S. Government.

      The Trust's Additional Loans have similar risks as those associated
   with higher risk debt instruments, including:  reliance on the owners 
   operating skills, ability to maintain occupancy levels, control operating
   expenses, ability to maintain the properties and obtain adequate
   insurance coverage; adverse changes in general economic conditions,
   adverse local conditions, and changes in governmental regulations, real
   estate zoning laws, or tax laws; and other circumstances over which the
   Trust may have little or no control. 


   Operations

   The following discussion relates to the operations of the Trust during
   the three and nine months ended September 30, 1997 and 1996.

   The Trust s net income decreased for the three months ended September 30,
   1997 as compared to the same period in 1996 by $827,577 primarily due to
   a decrease in base interest of $159,723 and increase in amortization
   expense of $824,794.  This was offset by an increase in additional loan
   interest of $123,173 due to the Trust receiving and recognizing as
   interest income additional loan interest payments from The Seasons.  The
   decrease in base interest is primarily due to the Timber Ridge Apartments
   prepayment and the interest rate reduction to the Windward Lakes
   Apartments PIMI.  The increase in amortization expense is due to the
   Trust fully amortizing the prepaid expenses and fees related to the
   Canyon Ridge and Timber Ridge Apartments prepayments.

   The Trust s net income increased for the nine months ended September 30,
   1997, as compared to the same period in 1996 by $748,405.  This increase
   resulted from higher participation income, additional loan interest
   income and other interest income of $1,226,320, $771,918 and $202,090,
   respectively, net of lower base interest and interest income on MBS of
   $550,041 and $106,554, respectively and an increase in amortization
   expense as mentioned above of $791,979.  The increases in participation
   income and additional loan interest income are primarily related to the
   Timber Ridge PIMI. The Trust received $1,246,000 of participation
   interest and reclassed $540,000 of interest previously received and
   recorded in deferred income to interest income upon early repayment of
   the PIMI.  In addition, the Trust is receiving and recognizing as
   interest income the additional loan interest payments from The Seasons. 
   The Trust also received participation interest from the Lincoln Green
   PIM, The Seasons PIMI and the Riverview PIM of $102,000, $32,622 and
   $4,466, respectively.  Base interest decreased as a result of the
   repayment of the Timber Ridge PIMI during the first quarter of 1997 and
   the repayment of the Canyon Ridge PIM during the second quarter of 1996
   and the interest rate reduction given to Windward Lakes Apartments.

     The Trust generally funds a portion of its dividends with MBS and
   PIM/PIMI principal collections which reduces the invested assets
   generating income for the Trust in the future.  As the invested assets
   decline so will base interest on PIMs and PIMIs, interest income on MBS
   and other interest income.   

                                               -14-
<PAGE>


                                   KRUPP GOVERNMENT INCOME TRUST

                                    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





                                   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 Government Income Trust                           
          Registrant
             
                          BY:  /s/Robert A. Barrows                    
                          Robert A. Barrows
                          Treasurer and Chief Accounting Officer of Krupp
                          Government Income Trust


          DATE: October 28, 1997
































                                               -16-
<PAGE>