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


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

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

CASH AND CASH EQUIVALENTS                $  352,066       $  389,413 
PROPERTY                                  3,621,746        3,856,310
 
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             343,756          364,645

OTHER ASSETS                                 21,684           21,684  

TOTAL                                    $4,339,252       $4,632,052 

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES                              $  616,100       $  610,006 

 
PARTNERS' EQUITY:
     General Partners                       (70,548)         (67,560)
     Limited Partners                     3,793,700        4,089,606 

  Total partners' equity                  3,723,152        4,022,046

TOTAL                                    $4,339,252       $4,632,052

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

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

<TABLE>
                                         June 30,         June 30,
                                           1997             1996  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  421,223       $  406,006
Interest                                      1,609            3,000
     Total revenues                         422,832          409,006 

EXPENSES:

Operating Expenses                          276,397          245,044 
General and administrative                   40,090           38,097
     Total expenses                         316,487          283,141 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE             106,345          125,865
EQUITY IN INCOME OF REAL ESTATE              21,764           20,615

NET INCOME                               $  128,109       $  146,480 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  126,828       $  145,015 
    General partners                          1,281            1,465

TOTAL                                    $  128,109       $  146,480 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     5.28       $     6.04 


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

See accompanying notes to financial statements(unaudited).

STATEMENTS OF INCOME (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996


                                           June 30,        June 30,
                                             1997            1996


REVENUES:
Rental Income                            $  839,078       $  813,065
Interest                                      3,392            5,356
Total Revenues                              842,470          818,421

EXPENSES:
Operating Expenses                          533,500          493,689
General and Administrative                  104,220          103,167
Total Expenses                              637,720          596,856

INCOME BEFORE EQUITY IN INCOME OF
  REAL ESTATE JOINT VENTURE                 204,750          221,565

EQUITY IN INCOME OF REAL
  ESTATE FOINT VENTURE                       41,810           42,961

NET INCOME                               $  246,560       $  264,526

AGGREGATE NET INCOME ALLOCATED TO:
  Limited partners                       $  244,094       $  261,881
  General partners                            2,466            2,645

TOTAL                                    $  246,560       $  264,526

NET INCOME PER LIMITED PARTNERSHIP UNIT      $10.17           $10.91

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 THREE MONTHS ENDED JUNE 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                               2,645         261,881      264,526 
DISTRIBUTIONS                           (5,454)       (540,000)    (545,454)

EQUITY AT JUNE 30, 1996               ($64,233)     $4,418,955   $4,354,722

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

NET INCOME                               2,466         244,094      246,560
DISTRIBUTIONS                           (5,454)       (540,000)    (545,454)

EQUITY AT JUNE 30, 1997               ($70,548)     $3,793,700   $3,723,152


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

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

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

Net income                             $ 246,560       $ 264,526  

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

     Depreciation                        234,567         234,567 
     Distributions in excess 
      	of earnings in 
       real estate joint venture          20,886          19,589

     Changes in assets and 
      	liabilities:

     Decrease in other assets                  0          27,839    
     Increase(Decrease)in liabilities      6,094          (5,956)

Net cash provided by 
  operating activities                   508,107         540,565

CASH FLOWS FROM INVESTING ACTIVITIES -

     Purchase of property 
       and equipment                          0          (19,800)   

CASH FLOWS FROM FINANCING ACTIVITIES -

     Distributions to partners          (545,454)       (545,454)

NET DECREASE IN CASH AND 
   CASH EQUIVALENTS                      (37,347)        (24,689) 

CASH AND CASH EQUIVALENTS:

     At beginning of period              389,413         445,657 
     At end of period                  $ 352,066        $420,968 


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  June 30, 1997, and for
the  periods  ended  June 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  June 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        ( 5,777,892)
        Property - Net                       $  3,621,746
</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 three months 
ended  June 30, 1997, and  1996  is  as  follows:
<TABLE>
                                   1997                   1996
     <S>                           <C>                    <C>
     Revenue                     $320,774               $315,861             
     Operating Expenses           181,407                172,659
     Net Income                  $139,367               $143,202
 
</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.