October 31, 1997

		QUARTERLY REPORT TO THE LIMITED PARTNERS
			OF DSI REALTY INCOME FUND VIII


DEAR LIMITED PARTNERS:

We  are  pleased  to  enclose  the  Partnership's  unaudited  financial
statements  for  the  period  ended  September 30, 1997.  The following is 
Management's  discussion  and  analysis  of  the  Partnership's  financial 
condition  and  results  of  its  operations.

For  the  three  month periods ended September 30, 1997,  and  1996, total
revenues increased 4.9% from $410,582 to $430,542 and total expenses decreased
0.9% from $287,857 to $285,306.  Equity in income of the real estate joint
venture increased 2.0% from $24,134 to $24,611.  As a result, net income
increased 15.7% from $146,859 to $169,847 for the three month period ended
September 30, 1997, as compared to the same period in 1996.  Rental revenue
increased as a result of higher occupancy and unit rental rates.  Operating
expenses decreased approximately $6,200 (2.4%) primarily as a result of lower
real estate tax expense partially offset by higher yellow pages advertising
costs and legal expenses.  Real estate tax expense decreased as a result of
refunds received from prior year reassessments.  General and administrative
expenses increased approximately $3,700 (10.9%) primarily as a result of
higher incentive management fees.  Incentive management fees, which are based
on cash available for distribution, increased as a result of the increase in
net income.  Equity in income from the real estate joint venture remained
constant.  Occupancy levels for the Partnership's five mini-storage facilities
averaged 86.8% for the three month periods ended September 30, 1997 as compared
to 84.1% for the same period in 1996.  The Partnership is continuing its
advertising campaign to attract and keep new tenants in its various mini-
storage facilities.

For the nine month periods ended September 30, 1997, and 1996, total revenues
increased 3.6% from $1,229,003 to $1,273,012 and total expenses increased 4.3%
from $884,713 to $923,026.  Equity in income of the real estate joint venture
decreased 1.0% from $67,095 to $66,421.  As a result, net income increased
1.2% from $411,385 to $416,407 for the nine month period ended September 30,
1997, as compared to the same period in 1996.  Rental revenue increased as a
result of higher occupancy and unit rental rates.  Operating expenses increased
approximately $33,600 (4.5%) primarily as a result of increases in yellow pages
advertising costs, legal, fire and liability insurance and salaries and wage
expenses partially offset by a decrease in real estate tax expense. The decrease
in real estate tax expense was discussed above.  General and administrative
expenses increased approximately $4,700 (3.4%) primarily as a result of
Colorado State Taxes, which were levied for the first time.  Equity in income
from the real estate joint venture remained constant.

The  General  Partners will  continue  their  policy  of  funding improvements 
and maintenance of Partnership  properties  with  cash  generated  from 
operations.  The  Partnership's financial resources  appear  to be adequate  
to meet its needs.  The  General Partners anticipate distributions to Limited 
Partners  to  remain  at  the  current  level  for  the  foreseeable  future.

We are not enclosing a copy of the Partnership Form 10-Q as filed with the 
Securities and Exchange Commission since all the information set forth 
therein is contained either in this letter or in the attached financial 
statements. However, if you wish to receive a copy of said report, please 
send a written request to DSI Realty Income Fund VIII, P.O. Box 357, Long 
Beach, California 90801. 

                              Very truly yours,

                              DSI REALTY INCOME FUND VIII
                              By: DSI Properties, Inc., as
                              General Partner



                              By  /s/ Robert J. Conway
                                  ____________________________
                                 ROBERT J. CONWAY, President