<TABLE> <S> <C>

<ARTICLE>                5
<LEGEND>
                         THIS   SCHEDULE    CONTAINS   SUMMARY    FINANCIAL
                         INFORMATION EXTRACTED FROM THE BALANCE SHEET AS OF
                         DECEMBER 31, 1996 AND THE  STATEMENT OF INCOME FOR
                         THE YEAR ENDED  DECEMBER 31, 1996 AND IS QUALIFIED
                         IN ITS  ENTIRETY BY  REFERENCE  TO SUCH  FINANCIAL
                         STATEMENTS.
</LEGEND>
<CIK>                    0000865828
<NAME>                   PARTICIPATING INCOME PROPERTIES III LIMITED PARTNERSHIP
<MULTIPLIER>             1
<CURRENCY>               U.S. DOLLARS
       
<S>                      <C>
<PERIOD-TYPE>            YEAR
<FISCAL-YEAR-END>                                                            DEC-31-1996
<PERIOD-END>                                                                 DEC-31-1996
<EXCHANGE-RATE>                                                                        1
<CASH>                                                                           651,261
<SECURITIES>                                                                           0
<RECEIVABLES>                                                                     38,000
<ALLOWANCES>                                                                           0
<INVENTORY>                                                                            0
<CURRENT-ASSETS>                                                                       0
<PP&E>                                                                        14,642,838
<DEPRECIATION>                                                                 2,048,841
<TOTAL-ASSETS>                                                                21,078,466
<CURRENT-LIABILITIES>                                                                  0
<BONDS>                                                                                0
<PREFERRED-MANDATORY>                                                                  0
<PREFERRED>                                                                            0
<COMMON>                                                                               0
<OTHER-SE>                                                                    20,235,792
<TOTAL-LIABILITY-AND-EQUITY>                                                  21,078,466
<SALES>                                                                                0
<TOTAL-REVENUES>                                                               2,636,853
<CGS>                                                                                  0
<TOTAL-COSTS>                                                                    744,948
<OTHER-EXPENSES>                                                                       0
<LOSS-PROVISION>                                                                       0
<INTEREST-EXPENSE>                                                                     0
<INCOME-PRETAX>                                                                1,891,905
<INCOME-TAX>                                                                           0
<INCOME-CONTINUING>                                                            1,891,905
<DISCONTINUED>                                                                         0
<EXTRAORDINARY>                                                                        0
<CHANGES>                                                                              0
<NET-INCOME>                                                                   1,891,905
<EPS-PRIMARY>                                                                      70.13
<EPS-DILUTED>                                                                          0
        

</TABLE>