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


BALANCE SHEETS(UNAUDITED)
JUNE 30, 1998 AND DECEMBER 31, 1997

<TABLE>
<CAPTION>
                                          June 30,       December 31,
                                            1998             1998 
<S>                                       <C>            <C>
ASSETS

CASH AND CASH EQUIVALENTS                $  496,584       $  399,704 
PROPERTY                                  3,134,586        3,387,178
 
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             291,674          313,650

OTHER ASSETS                                 31,604           31,604  

TOTAL                                    $3,954,448       $4,132,136 

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES                              $  612,551       $  612,450 

 
PARTNERS' EQUITY:
     General Partners                       (74,361)         (72,584)
     Limited Partners                     3,416,258        3,592,270 

  Total partners' equity                  3,341,897        3,519,686

TOTAL                                    $3,954,448       $4,132,136

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

STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997

<TABLE>
                                         June 30,         June 30,
                                           1998             1997  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  454,693       $  421,223
Gain on sale of land                         46,974                0
Interest                                      2,223            1,609
     Total revenues                         503,890          422,832 

EXPENSES:

Operating Expenses                          264,009          276,397 
General and administrative                   48,569           40,090
     Total expenses                         312,578          316,487 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE             191,312          106,345

EQUITY IN INCOME OF REAL ESTATE
   JOINT VENTURE                             27,035           21,764

NET INCOME                               $  218,347       $  128,109 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  216,164       $  126,828 
    General partners                          2,183            1,281

TOTAL                                    $  218,347       $  128,109 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     9.01       $     5.28 


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, 1998 AND 1997


                                           June 30,        June 30,
                                             1998            1997

REVENUES:
Rental Income                            $  902,002       $  839,078
Gain on sale of land                         46,974                0
Interest                                      4,059            3,392

Total Revenues                              953,035          842,470

EXPENSES:
Operating Expenses                          518,463          533,500
General and Administrative                  118,731          104,220
Total Expenses                              637,194          637,720

INCOME BEFORE EQUITY IN INCOME OF
  REAL ESTATE JOINT VENTURE                 315,841          204,750

EQUITY IN INCOME OF REAL
  ESTATE FOINT VENTURE                       51,824           41,810

NET INCOME                               $  367,665       $  246,560

AGGREGATE NET INCOME ALLOCATED TO:
  Limited partners                       $  363,988       $  244,094
  General partners                            3,677            2,466

TOTAL                                    $  367,665       $  246,560

NET INCOME PER LIMITED PARTNERSHIP UNIT      $15.17           $10.17

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 SIX MONTHS ENDED JUNE 30, 1998 AND 1997

<TABLE>
<CAPTION>
                                      GENERAL        LIMITED
                                      PARTNERS       PARTNERS       TOTAL
<S>                                   <C>            <C>            <C>


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

EQUITY AT DECEMBER 31, 1997           ($72,584)     $3,592,270   $3,519,686

NET INCOME                               3,677         363,988      367,665
DISTRIBUTIONS                           (5,454)       (540,000)    (545,454)

EQUITY AT JUNE 30, 1998               ($74,361)     $3,416,258   $3,341,897


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

STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997

<TABLE>
<CAPTION>
                                      June 30,          June 30,
                                        1998              1997
                                                            
<S>                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                             $ 367,665       $ 264,560  

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

     Depreciation                        234,566         234,567
     Gain on sale of land                (46,974)              0
     Distributions in excess 
      	of earnings in 
       real estate joint venture          21,976          20,886

     Changes in assets and 
      	liabilities:
    
     Increase in liabilities                 101           6,094

Net cash provided by 
  operating activities                   577,334         508,107

CASH FLOWS FROM INVESTING ACTIVITIES -
 
     Proceeds from Sale of land           18,026               0

CASH FLOWS FROM FINANCING ACTIVITIES -

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

NET INCREASE(DECREASE) IN CASH AND 
   CASH EQUIVALENTS                       96,880         (37,347) 

CASH AND CASH EQUIVALENTS:

     At beginning of period              399,704         389,413 
     At end of period                  $ 496,584        $352,066 


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, 1998, and for
the  periods  ended  June 30, 1998, and 1997 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, 1998, 
is  as  follows:

<TABLE>
        <S>                                 <C>
        Land                                 $  2,287,284
        Buildings and improvements              7,071,497 
        Equipment                                  22,831
        Total                                   9,381,612
        Less: Accumulated Depreciation        ( 6,247,026)
        Property - Net                       $  3,134,586
</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 
the 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, 1998, and  1997  is  as  follows:
<TABLE>
                                   1998                   1997
     <S>                           <C>                    <C>
     Revenue                     $345,427               $320,774             
     Operating Expenses           172,681                181,407
     Net Income                  $172,746               $139,367
 
</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.