UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, DC  20549
                                   
                               FORM 10-Q

(Mark One)

[X]   QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(D)  OF  THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended          September 30, 1998
                               ---------------------------------------
[   ]  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                    33-15597
                       -----------------------------------------------

                   DIVERSIFIED HISTORIC INVESTORS V
----------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

           Pennsylvania                                 23-2479468
------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization                      Identification No.)

              1609 WALNUT STREET,  PHILADELPHIA,  PA  19103
----------------------------------------------------------------------
 (Address of principal executive offices)               (Zip Code)

Registrant's telephone number, including area code  (215) 557-9800

                                  N/A
----------------------------------------------------------------------
 (Former name, former address and former fiscal year, if changed since
                             last report)

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.

             Consolidated Balance Sheets - September 30, 1998
             (unaudited) and December 31, 1997
             Consolidated Statements of Operations - For the Three
             Months and Nine Months Ended September 30, 1998 and 1997
             (unaudited)
             Consolidated Statements of Cash Flows - For the Nine
             Months Ended September 30, 1998 and 1997 (unaudited)
             Notes to Consolidated Financial Statements (unaudited)

Item 2.      Management's Discussion and Analysis of
             Financial Condition and Results of Operations.

             (1)  Liquidity

                   As  of  September 30, 1998, Registrant had cash  of
$18,644.   Such  funds are expected to be used to pay liabilities  and
general  and administrative expenses of Registrant, and to  fund  cash
deficits  of the properties.  Cash generated from operations  is  used
primarily  to fund operating expenses and debt service.  If cash  flow
proves  to  be insufficient, the Registrant will attempt to  negotiate
loan modifications with the various lenders in order to remain current
on  all  obligations.  The Registrant is not aware of  any  additional
sources of liquidity.

                   As of September 30, 1998, Registrant had restricted
cash  of  $478,199  consisting primarily of  funds  held  as  security
deposits,  replacement reserves and escrows for taxes  and  insurance.
As  a  consequence of the restrictions as to use, Registrant does  not
deem these funds to be a source of liquidity.

             (2)  Capital Resources

                   Due to the relatively recent rehabilitations of the
properties,  any capital expenditures needed are generally replacement
items  and  are  funded  out  of cash from operations  or  replacement
reserves,  if  any.  The Registrant is not aware of any factors  which
would cause historical capital expenditure levels not to be indicative
of  capital  requirements  in the future and,  accordingly,  does  not
believe  that  it  will have to commit material resources  to  capital
investment for the foreseeable future.

             (3)  Results of Operations

                    During  the  third  quarter  of  1998,  Registrant
incurred a net loss of $510,254 ($45.34 per limited partnership  unit)
compared  to a net loss of $1,347,424 ($119.73 per limited partnership
unit) for the same period in 1997.  For the first nine months of 1998,
Registrant  incurred  a  loss  of  $1,548,593  ($137.60  per   limited
partnership  unit) compared to a net loss of $1,975,020  ($175.49  per
limited partnership unit) for the same period in 1997.

                   Rental and hotel income combined decreased $158,853
from  $506,199 in the third quarter of 1997 to $347,346  in  the  same
period  in  1997.  $155,624 of the decrease was from hotel income  and
there  was a $3,229 decrease in rental income.  The decrease in  hotel
income is due to a decrease in the average occupancy (59% to 48%)  and
a  decrease  in  average room rates ($90.66 to $77.20) at  the  Redick
Plaza  Hotel.   The  occupancy decreased due to the conversion  to  an
independent  hotel  from an affiliation with  the  Radisson  chain  of
hotels.   The  decrease in rental income is due to a decrease  in  the
average occupancy (98% to 84%) at the Lofts at Red Hill.

                   Rental  and  hotel income decreased  $550,588  from
$1,556,906  for  the first nine months of 1997 to $1,006,318  for  the
same period of 1998.  $553,973 of the decrease was due to hotel income
and  there  was a $3,385 increase in rental income.  The  decrease  in
hotel  income  is due to a decrease in the average occupancy  (58%  to
42%)  and a decrease in average room rates ($93.79 to $83.72)  at  the
Redick Plaza Hotel.  The occupancy decreased due to the conversion  to
an  independent hotel from an affiliation with the Radisson  chain  of
hotels.   The increase in rental income is due to an increase  in  the
average rental rates at the Lofts at Red Hill.

                   Expense  for rental operations decreased by  $8,103
from  $34,309  in  the third quarter of 1997 to $26,206  in  the  same
period  in  1998 and decreased by $84,584 from $149,296 for the  first
nine  months  of 1997 to $64,712 for the same period in  1998  due  to
legal  fees incurred in the second quarter of 1997 in connection  with
the bankruptcy of the Redick Plaza Hotel that did not recur in 1998.

                   Hotel  operations  expense decreased  $27,873  from
$448,140  in the third quarter of 1997 to $420,267 in the same  period
in  1998  and  decreased $175,009 from $1,437,934 for the  first  nine
months  of  1997 to $1,262,925 for the same period in 1998 due  to  an
overall  decrease  in  operating  expenses  due  to  the  decrease  in
occupancy.

                     Interest expense decreased $253,626 from $503,302
in  the  third quarter of 1997 to $249,676 in the same period in  1998
and  increased $1,078 from $742,977 for the first nine months of  1997
to  $744,055  for the same period in 1998.  The decrease  in  interest
expense  from the third quarter of 1997 to the same period in 1998  is
the result of the accrual of default increase in the third quarter  of
1997  at  the  Redick  Plaza  Hotel  in  relation  to  the  July  1997
refinancing  and an increase in interest expense at the Lofts  at  Red
Hill due to a new loan.

                   Depreciation  and  amortization  expense  increased
$18,801 from $126,750 in the third quarter of 1997 to $145,551 in  the
same  period in 1998 and increased $56,403 from $380,252 for the first
nine  months  of 1997 to $436,655 for the same period  in  1998.   The
increase  is  the result of the amortization of loan fees incurred  in
July 1997 connection with the refinancing of the Redick Plaza Hotel.

                   Losses  incurred during the third  quarter  at  the
Registrant's   properties   amounted   to   $475,000,   compared    to
approximately  $606,000 for the same period in 1997.   For  the  first
nine  months of 1998 the Registrant's properties recognized a loss  of
$1,445,000 compared to approximately $1,076,000 for the same period in
1997.

                   In the third quarter of 1998, Registrant recognized
a  loss  of  $452,000 at the Redick Plaza Hotel including $115,000  of
depreciation and amortization expense, compared to a loss of  $596,000
in  the third quarter of 1997, including $112,000 of depreciation  and
amortization expense.  The decrease in the loss from the third quarter
of  1997  to  the same period in 1998 is the result of a  decrease  in
interest expense and overall operating expenses partially offset by  a
decrease in rental income due to a decrease in average occupancy  (59%
to 48%) and a decrease in the average nightly rates ($90.66 to $77.20)
for  the  quarter  and an increase in amortization expense.   Interest
expense decreased due to the accrual of default increase at the Redick
Plaza  Hotel  in  relation  to the July 1997  refinancing.   Operating
expenses  decreased  due  to the decrease in occupancy.   Amortization
expense  increased due to the amortization of loan  fees  incurred  in
July  1997  in  connection with the refinancing of  the  Redick  Plaza
Hotel.

                   For  the first nine months of 1998, incurred a loss
of  $1,394,000  at  the  Redick  Plaza  Hotel  including  $345,000  of
depreciation  and  amortization  expense,  compared  to  a   loss   of
$1,057,000  for  the same period in 1997, including  depreciation  and
amortization expense of $337,000.  The increase in the loss  from  the
first nine months of 1997 to the same period in 1998 is the result  of
a  decrease  in  rental income due to a decrease in average  occupancy
(58%  to  42%) and a decrease in the average nightly rates ($93.79  to
$83.72)  combined  with an increase in amortization expense  partially
offset  by  an  overall decrease in operating expenses.   Amortization
expense  increased due to the amortization of loan  fees  incurred  in
July  1997  in  connection with the refinancing of  the  Redick  Plaza
Hotel.   Overall operating expenses decreases due to the  decrease  in
occupancy.

                     In the third quarter of 1998, Registrant incurred
a  loss  of  $23,000  at the Lofts at Red Hill, including  $15,000  of
depreciation and amortization expense, compared to a loss  of  $10,000
including $14,000 of depreciation expense in the third quarter of 1997
and  for  the  first nine months of 1998, incurred a loss of  $51,000,
including  $45,000  of  depreciation expense compared  to  a  loss  of
$16,000  for  the  first  nine months of 1997  including  depreciation
expense of $43,000.  The increased loss from the third quarter and the
first  nine months of 1998 from the same periods in 1997 is the result
of  an increase in interest expense due to the new note placed on  the
property  in September 1997.  The increase in the loss from the  first
nine months of 1997 to the same period in 1998 is partially offset  by
an  increase in rental income due to an increase in the average rental
rates.
<PAGE>

                   DIVERSIFIED HISTORIC INVESTORS V
                 (a Pennsylvania limited partnership)
                                   
                      CONSOLIDATED BALANCE SHEETS
               September 30, 1998 and December 31, 1997
                                   
                                Assets

                                        September 30, 1998    December 31, 1997
                                            (Unaudited)
Rental properties, at cost:                                           
Land                                        $   347,955           $   347,955
Buildings and improvements                   10,976,514            10,976,514
Furniture and fixtures                        1,175,768             1,175,768
                                             ----------            ---------- 
                                             12,500,237            12,500,237
Less - Accumulated depreciation              (5,661,417)           (5,284,345)
                                             ----------            ---------- 
                                              6,838,820             7,215,892
                                                                      
Cash and cash equivalents                        18,644                57,736
Restricted cash                                 478,199               176,129
Accounts and notes receivable                   157,040               117,468
Other assets (net of amortization of                                  
  $345,326 and $190,812 at                                            
  September 30, 1998 and December                                     
  31, 1997, respectively).                      367,866               396,949
                                             ----------            ----------  
       Total                                $ 7,860,569           $ 7,964,174
                                             ==========            ==========

                   Liabilities and Partners' Equity
Liabilities:
Debt obligations                            $ 7,508,185           $ 6,804,113
Accounts payable:                                                    
       Trade                                    627,251               385,613
       Related parties                           33,656                55,000
       Taxes                                     95,258                35,123
Interest payable                              1,336,469               869,660
Accrued liabilities                              72,557                77,899
Tenant security deposits                          8,400                 9,380
                                             ----------            ---------- 
       Total liabilities                      9,681,776             8,236,788
                                             ----------            ---------- 
Partners' equity                             (1,821,207)             (272,614)
                                             ----------            ---------- 
       Total                                $ 7,860,569           $ 7,964,174
                                             ==========            ==========

The accompanying notes are an integral part of these financial statements.
<PAGE>
                                   
                   DIVERSIFIED HISTORIC INVESTORS V
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months and Nine Months Ended September 30, 1998 and 1997
                              (Unaudited)

                                         Three months           Nine months
                                     Ended September 30,     Ended September 30,
                                      1998        1997        1998        1997

Revenues:                                                                 
   Rental income                 $   29,155  $   32,384 $    93,720 $    90,335
   Hotel income                     318,191     473,815     912,598   1,466,571
   Interest income                       99       4,877       1,433      16,530
                                    -------     -------   ---------   ---------
   Total revenues                   347,445     511,076   1,007,751   1,573,436
                                    -------     -------   ---------   ---------
Costs and expenses:                                                
   Rental operations                 26,206      34,309      64,712     149,296
   Hotel operations                 420,267     448,140   1,262,925   1,437,934
   General and administrative        15,999     745,999      47,997     837,997
   Interest                         249,676     503,302     744,055     742,977
   Depreciation and                                                    
        Amortization                145,551     126,750     436,655     380,252
                                    -------   ---------   ---------   ---------
   Total costs and expenses         857,699   1,858,500   2,556,344   3,548,456
                                    -------   ---------   ---------   ---------
Net loss                         ($ 510,254)($1,347,424)($1,548,593)($1,975,020)
                                   ========   =========   =========   =========
Net loss per limited partnership 
unit                             ($   45.34)($   119.73)($   137.60)($  175.49)
                                   ========   =========   =========   ======== 

The accompanying notes are an integral part of these financial statements.
<PAGE>

                   DIVERSIFIED HISTORIC INVESTORS V
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
         For the Nine Months Ended September 30, 1998 and 1997
                              (Unaudited)
                                   
                                                        Nine months ended
                                                           September 30,
                                                        1998          1997
                                                                              
Cash flows from operating activities:                                         
 Net loss                                           ($1,548,593)  ($1,975,020)
   Adjustments to reconcile net loss to net cash
    used in operating activities:
 Depreciation and amortization                          436,655       380,252
 Changes in assets and liabilities:                                           
   Increase in restricted cash                         (302,070)     (163,971)
   Increase in accounts receivable                      (39,572)      (38,227)
   Increase in other assets                             (30,499)     (136,012)
   Increase (decrease) in accounts payable - trade      241,637      (113,205)
   Decrease in accounts payable - related parties       (21,344)      (75,063)
   Increase (decrease) in accounts payable - taxes       60,135       (18,324)
   Increase in interest payable                         466,809       659,207
   Decrease in accrued liabilities                         (980)       (1,364)
   Decrease in tenant security deposits                  (5,342)       (4,450)
                                                      ---------     --------- 
Net cash used in operating activities:                 (743,164)   (1,486,177)
                                                      ---------     ---------  
Cash flows from investing activities:                                        
 Capital expenditures                                         0       (17,740)
                                                      ---------     ---------   
   Net cash used in investing activities:                     0       (17,740)
                                                      ---------     ---------  
Cash flows from financing activities:                                        
 Proceeds from debt financings                          704,072       633,623
 Principal payments                                           0             0
                                                      ---------     --------- 
Net cash provided by financing activities:              704,072       633,623
                                                      ---------     ---------
Decrease in cash and cash equivalents                   (39,092)     (870,294)
                                                                             
Cash and cash equivalents at beginning of period         57,736     1,126,711
                                                      ---------     --------- 
Cash and cash equivalents at end of period          $    18,644    $  256,417
                                                      =========     ========= 

The accompanying notes are an integral part of these financial statements.
<PAGE>                                  
                   DIVERSIFIED HISTORIC INVESTORS V
                 (a Pennsylvania limited partnership)

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

        The unaudited consolidated financial statements of Diversified
Historic Investors V (the "Registrant") have been prepared pursuant to
the  rules  and regulations of the Securities and Exchange Commission.
Accordingly,  certain  information and footnote  disclosures  normally
included in financial statements prepared in accordance with generally
accepted  accounting  principles have been omitted  pursuant  to  such
rules   and  regulations.   The  accompanying  consolidated  financial
statements  and related notes should be read in conjunction  with  the
audited  financial statements in Form 10-K and notes thereto,  in  the
Registrant's  Annual Report on Form 10-K for the year  ended  December
31, 1997.

              The  information furnished reflects, in the  opinion  of
management, all adjustments, consisting of normal recurring  accruals,
necessary  for  a  fair  presentation of the results  of  the  interim
periods presented.

                      PART II - OTHER INFORMATION

Item 1.      Legal Proceedings

                To  the best of its knowledge, Registrant is not party
to,  nor  is any of its property the subject of, any pending  material
legal proceedings.

Item 4.      Submission of Matters to a Vote of Security Holders

              No  matter  was submitted during the quarter covered  by
this report to a vote of security holders.


Item 6.      Exhibits and Reports on Form 8-K

             (a)  Exhibit       Document
                  Number

                    3           Registrant's  Amended and Restated  Certificate
                                of   Limited   Partnership  and  Agreement   of
                                Limited  Partnership, previously filed as  part
                                of    Amendment    No.   2   of    Registrant's
                                Registration  Statement  on  Form   S-11,   are
                                incorporated herein by reference.
                                                
                    21          Subsidiaries  of the Registrant are  listed  in
                                Item  2.  Properties on Form  10-K,  previously
                                filed and incorporated herein by reference.

             (b)  Reports on Form 8-K:

                  No  reports  were  filed  on  Form  8-K  during  the
                  quarter ended September 30, 1998.
<PAGE>

                              SIGNATURES


              Pursuant to the requirements of the Securities  Exchange
Act  of  1934, Registrant has duly caused this report to be signed  on
its behalf by the undersigned, thereunto duly authorized.



Date:   November 30, 1998        DIVERSIFIED HISTORIC INVESTORS V
        -----------------
                                 By: Dover Historic Advisors V, General Partner
                                             
                                     By: EPK, Inc., Partner
                                                 
                                         By: /s/ Spencer Wertheimer
                                             ----------------------
                                             SPENCER WERTHEIMER
                                             President and Treasurer