DSI REALTY INCOME FUND VIII
                     (A California Real Estate Limited Partnership)


BALANCE SHEETS(UNAUDITED)
SEPTEMBER 30, 1997 AND DECEMBER 31, 1996

<TABLE>
<CAPTION>
                                       September 30,      December 31,
                                            1997             1996 
<S>                                      <C>              <C>
ASSETS

CASH AND CASH EQUIVALENTS                $  426,436       $  389,413 
PROPERTY                                  3,504,462        3,856,310
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             327,864          364,645
OTHER ASSETS                                 21,684           21,684  

TOTAL                                    $4,280,446       $4,632,052 

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES                              $  660,174       $  610,006 

PARTNERS' EQUITY:
     General Partners                       (71,577)         (67,560)
     Limited Partners                     3,691,849        4,089,606 

  Total partners' equity                  3,620,272        4,022,046

TOTAL                                    $4,280,446       $4,632,052

See accompanying notes to financial statements(unaudited).
</TABLE>

STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

<TABLE>
<CAPTION>
                                       September 30,    September 30,
                                           1997             1996  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  428,743       $  407,863
Interest                                      1,799            2,719
     Total revenues                         430,542          410,582 

EXPENSES:

Operating Expenses                          247,659          253,892 
General and administrative                   37,647           33,965
     Total expenses                         285,306          287,857 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE             145,236          122,725
   EQUITY IN INCOME OF REAL ESTATE           24,611           24,134 

NET INCOME                               $  169,847       $  146,859 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  168,149       $  145,390 
    General partners                          1,698            1,469

TOTAL                                    $  169,847       $  146,859 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     7.01       $     6.06 


LIMITED PARTNERSHIP UNITS 
   USED IN PER UNIT CALCULATION              24,000           24,000 

See accompanying notes to financial statements(unaudited). 
</TABLE>

STATEMENTS OF INCOME (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

<TABLE>
<CAPTION>

                                      September 30,     September 30, 
                                           1997             1996

<S>                                        <C>              <C>

REVENUES:

Rental Income                          $1,267,821       $1,220,928
Interest                                    5,191            8,075
Total Revenues                          1,273,012        1,229,003

EXPENSES:
Operating Expenses                        781,159          747,581
General and Administrative                141,867          137,132
Total Expenses                            923,026          884,713

INCOME BEFORE EQUITY IN INCOME
OF REAL ESTATE JOINT VENTURE              349,986          344,290

EQUITY IN INCOME OF REAL
ESTATE JOINT VENTURE                       66,421           67,095

NET INCOME                               $416,407         $411,385


AGGREGATE NET INCOME ALLOCATED TO:
Limited Partners                          412,243          407,271
General Partners                            4,164            4,114

TOTAL                                     416,407          411,385

NET INCOME PER LIMITED
PARTNERSHIP UNIT                           $17.18           $16.97

LIMITED PARTNERSHIP UNITS
USED IN PER UNIT CALCULATION               24,000           24,000

See accompanying notes to financial statements(unaudited).
</TABLE>
         
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

<TABLE>
<CAPTION>
                                      GENERAL        LIMITED
                                      PARTNERS       PARTNERS       TOTAL
<S>                                   <C>             <C>          <C>
EQUITY AT DECEMBER 31, 1995           ($61,424)     $4,697,074   $4,635,650 

NET INCOME                               4,114         407,271      411,385 
DISTRIBUTIONS                           (8,181)       (810,000)    (818,181)

EQUITY AT SEPTEMBER 30, 1996          ($65,491)     $4,294,345   $4,228,854

EQUITY AT DECEMBER 31, 1996           ($67,560)     $4,089,606   $4,022,046

NET INCOME                               4,164         412,243      416,407
DISTRIBUTIONS                           (8,181)       (810,000)    (818,181)

EQUITY AT SEPTEMBER 30, 1997          ($71,577)     $3,691,849   $3,620,272


See accompanying notes to consolidated financial statements(unaudited).
</TABLE>

STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996

<TABLE>
<CAPTION>
                                    September 30,     September 30,
                                        1997              1996
                                                            
<S>                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                             $ 416,407        $411,385  

Adjustments to reconcile net 
   income to net cash provided
   by operating activities:

     Depreciation                        351,850         351,850 
     Distributions in excess 
      	of earnings in 
       real estate joint venture          36,779          33,256

     Changes in assets and 
      	liabilities:

     Decrease in other assets                  0          39,012    
     Increase in liabilities              50,168          36,063

Net cash provided by 
  operating activities                   855,204         871,566 

CASH FLOWS FROM INVESTING ACTIVITIES -

     Purchase of property 
       and equipment                           0         (19,800)   

CASH FLOWS FROM FINANCING ACTIVITIES -

     Distributions to partners          (818,181)       (818,181)

NET DECREASE IN CASH AND 
   CASH EQUIVALENTS                       37,023          33,585 

CASH AND CASH EQUIVALENTS:

     At beginning of period              389,413         445,657 
     At end of period                  $ 426,436        $479,242 


See accompanying notes to financial statements(unaudited).
</TABLE>


DSI REALTY INCOME FUND VIII
(A California Real Estate Limited Partnership)

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
	
1.   GENERAL

DSI Realty Income Fund VIII (the "Partnership"), a limited partnership, has 
two general partners (DSI Properties, Inc., and Diversified Investors Agency)
and limited partners owning 24,000 limited partnership units.  The
Partnership was formed under the California Uniform Limited Partnership
Act for the primary purpose of acquiring and operating real estate. 

The  accompanying  financial  information as of September 30, 1997, and for
the periods ended September 30, 1997, and 1996 is unaudited. Such financial 
information includes all adjustments considered necessary by the 
Partnership's management for a fair presentation of the results for the 
periods indicated.

2.   PROPERTY

The Partnership owns five mini-storage facilities located in Stockton,  
Pittsburg, El Centro, Lompoc and Huntington Beach, California.  The total 
cost of property and accumulated depreciation at September 30, 1997, 
is as follows:

<TABLE>
        <S>                                 <C>
        Land                                 $  2,305,310
        Buildings and improvements              7,071,497 
        Equipment                                  22,831
        Total                                   9,399,638
        Less: Accumulated Depreciation        ( 5,895,176)
        Property - Net                       $  3,504,462

</TABLE>


3.   INVESTMENT IN REAL ESTATE JOINT VENTURE

The Partnership is involved in a joint venture with DSI Realty Income 
Fund IX through which the Partnership has a 30% interest in a mini-storage 
facility in Aurora, Colorado.  Under the terms of the joint venture 
agreement, the Partnership is entitled to 30% of the profits and losses of 
venture and owns 30% of the mini-storage facility as a tenant in common
with DSI Realty Income Fund IX, which has the remaining 70% interest in
the venture.  Summarized income statement information for the nine months 
ended September 30, 1997, and 1996 is as follows:

<TABLE>
                                   1997                    1996
     <S>                           <C>                     <C>
     Revenue                     $489,546                $476,294             
     Operating Expenses           268,143                 252,644
     Net Income                  $221,403                $223,650
 
</TABLE>

The Partnership accounts for its investment in the real estate joint
venture under the equity method of accounting.

4.   NET INCOME PER LIMITED PARTNERSHIP UNIT

Net income per limited partnership unit is calculated by dividing the net 
income allocated to the limited partners by the number of limited 
partnership units outstanding during the period.