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


BALANCE SHEETS(UNAUDITED)
MARCH 31, 1999 AND DECEMBER 31, 1998

<TABLE>
<CAPTION>
                                          March 31,      December 31,
                                            1999             1998 
<S>                                      <C>              <C>
ASSETS

CASH AND CASH EQUIVALENTS                $  510,099       $  458,025 
PROPERTY, NET                             2,797,165        2,914,449
 
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             255,840          262,590

OTHER ASSETS                                 33,442           33,442  

TOTAL                                    $3,596,546       $3,668,506 

LIABILITIES AND PARTNERS' EQUITY (DEFICIT)

LIABILITIES                              $  642,961       $  605,333 

 
PARTNERS' EQUITY (DEFICIT):
     General Partners                       (78,246)         (77,150)
     Limited Partners                     3,031,831        3,140,323 

  Total partners' equity                  2,953,585        3,063,173

TOTAL                                    $3,596,546       $3,668,506

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

STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

<TABLE>
                                         March 31,        March 31,
                                           1999             1998  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  487,135       $  447,309
Interest                                      1,556            1,836
     Total revenues                         488,691          449,145 

EXPENSES:

Operating                                   284,245          254,454 
General and administrative                   66,956           70,162
     Total expenses                         351,201          324,616 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE             137,490          124,529
   EQUITY IN INCOME OF REAL ESTATE           25,649           24,789 

NET INCOME                               $  163,139       $  149,318 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  161,508       $  147,825 
    General partners                          1,631            1,493

TOTAL                                    $  163,139       $  149,318 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     6.73       $     6.16 


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 (DEFICIT)(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

<TABLE>
<CAPTION>
                                      GENERAL        LIMITED
                                      PARTNERS       PARTNERS       TOTAL
<S>                                 <C>             <C>          <C>
BALANCE, JANUARY 1, 1998            ($  72,584)     $3,592,270   $3,519,686

NET INCOME                               1,493         147,825      149,318 
DISTRIBUTIONS                           (2,727)       (270,000)    (272,727)

BALANCE, MARCH 31, 1998               ($73,818)     $3,470,095   $3,396,277

BALANCE, JANUARY 1, 1999              ($77,150)     $3,140,323   $3,063,173 

NET INCOME                               1,631         161,508      163,139 
DISTRIBUTIONS                           (2,727)       (270,000)    (272,727)

BALANCE, MARCH 31, 1999               ($78,246)     $3,031,831   $2,953,585 


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

STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

<TABLE>
<CAPTION>
                                      March 31,         March 31,
                                        1999              1998
                                                            
<S>                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                             $ 163,139        $149,318  

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

     Depreciation                        117,283         117,283
     Equity in earnings of real
      estate joint venture               (25,649)        (24,789)
     Distributions from real 
      estate joint venture                32,400          32,699
     Changes in assets and 
      	liabilities:
     Increase in other assets                                (25)   
     Increase(decrease)in liabilities     37,628          (4,767)

Net cash provided by 
  operating activities                   324,801         269,720 


CASH FLOWS FROM FINANCING ACTIVITIES -

     Distributions to partners          (272,727)       (272,727)

NET INCREASE(DECREASE)IN CASH AND 
   CASH EQUIVALENTS                       52,074          (3,007) 

CASH AND CASH EQUIVALENTS:

     At beginning of period              458,025         399,704
     At end of period                  $ 510,099        $396,697 


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 March 31, 1999, and for
the periods ended March 31, 1999, and 1998 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 March 31, 1999, 
is as follows:

<TABLE>
        <S>                                 <C>
        Land                                 $  2,287,427
        Buildings and improvements              7,085,783 
        Equipment                                  22,831
        Total                                   9,396,041
        Less: Accumulated Depreciation        ( 6,598,876)
        Property - Net                       $  2,797,165
</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 March 31, 1999, and 1998 is as follows:
<TABLE>
                                   1999                    1998
     <S>                           <C>                   <C>
     Revenue                     $192,777                $166,906             
     Operating Expenses           107,281                  84,280
     Net Income                  $ 85,496                $ 82,626
 
</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.