July 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  June 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  June 30, 1997  and  1996, total
revenues  increased  3.4%  from  $409,006 to  $422,832  and  total  expenses
increased 11.8% from  $283,141 to $316,487.  Equity in income  of  the  real
estate joint venture increased 5.6%  from  $20,615 to $21,764.  As a result, 
net income decreased  12.5% from $146,480  to  $128,109  for the three month 
period ended June 30, 1997, as compared to the same period in 1996.  Rental
revenue  increased  as a  result  of higher  unit rental  rates.  Operating
expenses increased approximately $31,400 (12.8%) primarily  as a  result of
higher yellow pages  advertising costs, maintenance and repair and salaries
and wage expenses.  General and administrative expenses remained constant.
Equity in income from the real estate  joint  venture  increased as a result
of  higher  occupancy rates partially  offset by  lower unit  rental rates
which resulted in increased rental  revenue  for  the  period.  Occupancy
levels for the Partnership's five mini-storage facilities averaged 85.5%
for the three month periods ended June 30, 1997 and 1996.  The Partnership
is continuing its advertising campaign to attract and keep new tenants in
its various mini-storage facilities.

For the six month  periods  ended  June 30, 1997, and 1996, total  revenues
increased 2.9%  from $818,421 to  $842,470 and total expenses increased 6.8%
from $596,856 to $637,720.  Equity  in  income of  the  real  estate  joint
venture decreased 2.7% from  $42,961 to $41,810.  As a  result, net  income
decreased  6.8%  from  $264,526 to  $246,560 for the six month period ended
June 30, 1997, as  compared to the  same  period in  1996.  Rental  revenue
increased  as a  result of  higher unit  rental  rates.  Operating expenses
increased approximately $39,800 (8.1%) primarily  as a  result of increases
in yellow pages advertising costs, fire and liability insurance and salaries
and wage expenses.  General  and  administrative expenses remained constant.
Equity in income from the  real estate  joint venture decreased as a result
of a non-recurring  termination payment to the facility  manager  partially
offset by an  increase in  rental  revenue as  discussed  above.

The  General  Partners will  continue  their  policy of funding improvements
and  maintenance  of  Partnership  properties  with  cash  generated  from
operations.  The  Partnership's  resources  appear  to  be  adequate  to
meet its needs.  The General Partners anticipate distributions to the 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