UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, DC.  20549
                                   
                               FORM 10-Q
                                   
(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended             June 30, 1997
                               ---------------------------------------
                                  or

[   ]  TRANSITION  REPORT  PURSUANT TO SECTION  13  OR  15(d)  OF  THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to _________________

Commission file number                    0-14934
                       -----------------------------------------------

                  DIVERSIFIED HISTORIC INVESTORS
----------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

       Pennsylvania                                      23-2312037
-------------------------------                    -------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization                      Identification No.)

          Suite 500, 1521 Locust Street, Philadelphia, PA   19102
----------------------------------------------------------------------
     (Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code  (215) 735-5001

                               N/A
----------------------------------------------------------------------
 (Former name, former address and former fiscal year, if changed since
                             last report)

Indicate  by  check  mark whether the Registrant  (1)  has  filed  all
reports  required to be filed by Section 13 or 15(d) of the Securities
Exchange  Act  of  1934 during the preceding 12 months  (or  for  such
shorter period that the Registrant was required to file such reports),
and  (2) has been subject to such filing requirements for the past  90
days.                                      Yes    X        No
<PAGE>
                    PART I - FINANCIAL INFORMATION

Item 1.             Financial Statements.

             Consolidated Balance Sheets - June 30, 1997 (unaudited)
             and December 31, 1996
             Consolidated Statements of Operations - Three Months and
             Six Months Ended June 30, 1997 and 1996 (unaudited)
             Consolidated Statements of Cash Flows - Six Months Ended
             June 30, 1997 and 1996 (unaudited)
             Notes to Consolidated Financial Statements (unaudited)

Item 2.             Management's Discussion and Analysis of
               Financial Condition and Results of Operations.

(1)    Liquidity

                      At  June  30,  1997,  Registrant  had  cash   of
approximately  $2,910.  Such funds are expected  to  be  used  to  pay
liabilities of Registrant and to fund cash deficits of the properties.
Cash  generated  from operations is used primarily to  fund  operating
expenses  and  debt service.  If cash flow proves to be  insufficient,
the  Registrant will attempt to negotiate with the various lenders  in
order  to  remain current on all obligations.  The Registrant  is  not
aware of any additional sources of liquidity.

                     As  of  June 30, 1997, Registrant had  restricted
cash  of  $52,683  consisting primarily  of  funds  held  as  security
deposits,   replacement  reserves  and  escrows  for  taxes.    As   a
consequence of these restrictions as to use, Registrant does not  deem
these funds to be a source of liquidity.

                     In  recent  years  the  Registrant  has  realized
significant losses, including the foreclosure of five properties and a
portion  of  a  sixth  property, due to the properties'  inability  to
generate sufficient cash flow to pay their operating expenses and debt
service.   At  the  present  time, the Registrant  has  feasible  loan
modifications in place for its remaining properties.  However, in  all
three  cases,  the  mortgages  are  basically  "cash-flow"  mortgages,
requiring all available cash after payment of operating expenses to be
paid to the first mortgage holder.  Therefore it is unlikely that  any
cash  will  be  available to the Registrant to  pay  its  general  and
administrative  expenses.  See Accountant's  Report  with  respect  to
financial  statements included in the Registrant's  Annual  Report  on
Form 10-K for the year ended December 31, 1996.

                     It  is the Registrant's intention to continue  to
hold  the  properties until they can no longer meet the  debt  service
requirements and the properties are foreclosed, or the market value of
the  properties increases to a point where they can be sold at a price
which  is  sufficient to repay the underlying indebtedness  (principal
plus accrued interest).

               (2)  Capital Resources

                     Due  to the relatively recent rehabilitations  of
the   properties,  any  capital  expenditures  needed  are   generally
replacement  items  and  are funded out of  cash  from  operations  or
replacement  reserves, if any.  The Registrant is  not  aware  of  any
factors  which would cause historical capital expenditures levels  not
to   be   indicative  of  capital  requirements  in  the  future   and
accordingly,  does  not believe that it will have to  commit  material
resources  to capital investment for the foreseeable future.   If  the
need  for  capital expenditures does arise, the first mortgage  holder
for Third Quarter and Wistar Alley and nine units at Smythe Stores has
agreed  to  fund capital expenditures at terms similar  to  the  first
mortgage.   The  mortgagee funded $2,098 and $369  during  the  second
quarter  and the first six months of 1997 at Smythe Stores and  Wistar
Alley, respectively.

               (3)  Results of Operations

                     During  the  second quarter of  1997,  Registrant
incurred a net loss of $193,751 ($16.53 per limited partnership  unit)
compared  to  a  net loss of $829,107 ($70.70 per limited  partnership
unit)  for the same period in 1996.  For the first six months of 1997,
the  Registrant  incurred a net loss of $432,089 ($36.85  per  limited
partnership  unit)  compared to a net loss of $1,112,896  ($94.90  per
limited partnership unit) for the same period in 1996.

                     Rental income decreased $17,420 from $124,346  in
the  second  quarter of 1996 to $106,926 in the same period  in  1997.
The  decrease resulted from the foreclosure of eleven of the units  at
one  of the Registrant's properties ("Smythe Stores") in December 1996
combined  with a decrease in rental income at Wistar Alley  due  to  a
decrease in the average occupancy (93% to 85%) partially offset by  an
increase in rental income at Third Quarter due to an increase  in  the
average rental rates.

                     Rental income decreased $22,259 from $230,796 for
the  first six months of 1996 to $208,537 for the same period in 1997.
The  decrease resulted from the foreclosure of eleven of the units  at
one  of the Registrant's properties ("Smythe Stores") in December 1996
partially  offset by an increase in rental income at Wistar Alley  due
to an increase in the average occupancy (83% to 86%) and Third Quarter
due to an increase in the average occupancy (90% to 95%).

                    Expense for rental operations decreased by $23,019
from  $91,415  in the second quarter of 1996 to $68,396  in  the  same
period  in  1997.  The decrease resulted from the foreclosure  of  the
eleven  units  at  Smythe  Stores in December  1996  combined  with  a
decrease  in  commissions expense at Third  Quarter  due  to  a  lower
turnover of apartment units and a decrease in management fees  expense
at Wistar Alley due to the decrease in rental income.

                    Expense for rental operations decreased by $66,762
from  $243,391  for the first six months of 1996 to $176,629  for  the
same  period  in 1997.  The decrease resulted from the foreclosure  of
the  eleven  units at Smythe Stores in December 1996 combined  with  a
decrease  in  real estate taxes at Third Quarter due to a decrease  in
the assessed value of the property.

                     Depreciation  and amortization expense  decreased
$21,936 from $79,147 in the second quarter of 1996 to $57,211  in  the
same  period in 1997 and decreased $44,031 from $158,452 for the first
six  months  of  1996  to $114,421 in the same period  in  1997.   The
decreases  are  the result of the foreclosure of the eleven  units  at
Smythe Stores in December 1996.

                      Interest  expense  decreased  by  $584,781  from
$742,478 in the second quarter of 1996 to $157,697 in the same  period
in  1997  and  decreased by $546,133 from $861,021 for the  first  six
months  of 1996 to $314,888 in the same period in 1997.  The  decrease
for  both  the  second quarter and the first six months  to  the  same
periods  in  1997  is  the result of the one-time accrual  of  default
interest  in  the second quarter of 1996 of interest that should  have
been  accrued in prior years at Smythe Stores, (which was not repeated
in 1997).

                     Losses incurred during the second quarter at  the
Registrant's properties amounted to $167,000, compared to  a  loss  of
approximately $787,000 for the same period in 1996.  For the first six
months of 1997 the Registrant's properties incurred a loss of $377,000
compared to approximately $1,028,000 for the same period in 1995.

                    In the second quarter of 1997, Registrant incurred
a  loss  of $96,000 at the Smythe Stores Condominium complex including
$18,000 of depreciation and amortization expense, compared to  a  loss
of  $714,000  in  the  second quarter of 1996,  including  $40,000  of
depreciation expense and for the first six months of 1997,  Registrant
incurred  a  loss  of $201,000 including $36,000 of  depreciation  and
amortization  expense,  compared to a loss of $825,000  for  the  same
period  in  1996,  including  $81,000 of  depreciation  expense.   The
decrease  in  the loss for both the second quarter and the  first  six
months of 1996 to the same periods in 1997 is mainly the result of the
loss of the eleven units in December 1996 combined with an increase in
interest expense due to the accrual in the second quarter of  1996  of
default interest that should have been accrued in prior years  due  to
the modification of 9 of the 20 mortgage loans.

                    In the second quarter of 1997, Registrant incurred
a  loss  of $36,000 at Third Quarter Apartments, including $18,000  of
depreciation expense, compared to a loss of $39,000 including  $18,000
of  depreciation expense in the second quarter of 1996.  The  decrease
in the loss from the second quarter of 1996 to the same period in 1997
is  the  result of an increase in rental income due to an increase  in
the average rental rates and a decrease in commissions expense due  to
a lower turnover of apartment units.

                     For  the  first  six months of  1997,  Registrant
incurred  a  loss  of  $91,000 at Third Quarter Apartments,  including
$35,000 of depreciation and amortization expense, compared to  a  loss
of  $107,000  for  the  same  period in  1996,  including  $35,000  of
depreciation  expense.  The decrease in the loss from  the  first  six
months of 1996 to the same period in 1997 is the result of an increase
in  rental income due to an increase in average occupancy (90% to 95%)
and  a decrease in real estate taxes due to a decrease in the assessed
value of the property.

                    In the second quarter of 1997, Registrant incurred
a  loss  of $35,000 at Wistar Alley, including $22,000 of depreciation
expense,   compared  to  a  loss  of  $34,000  including  $21,000   of
depreciation expense in the second quarter of 1996.  The  increase  in
the loss from the second quarter to the same period in 1997 is due  to
a decrease in rental income due to a decrease in the average occupancy
(93% to 85%) partially offset by a decrease in management fees expense
due to the decrease in the average occupancy.

                     For  the  first  six months of  1997,  Registrant
incurred  a  loss  of  $85,000 at Wistar Alley, including  $43,000  of
depreciation expense, compared to a loss of $96,000 including  $43,000
of  depreciation expense for the same period in 1996.  The decrease in
the  loss from the first six months of 1996 to the same period in 1997
is  due  to  an  increase in rental income due to an increase  in  the
average occupancy (83% to 86%).
<PAGE>
                                   
                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                      CONSOLIDATED BALANCE SHEETS
                                   
                                Assets

                                     June 30, 1997         December 31, 1996
                                      (Unaudited)
Rental properties, at cost:                                          
Land                                  $   310,833             $   310,833
Buildings and improvements              5,733,099               5,721,048
Furniture and fixtures                    113,742                 113,742
                                        ---------               ---------
                                        6,157,674               6,145,623
Less - Accumulated depreciation        (2,937,313)             (2,822,893)
                                        ---------               ---------
                                        3,220,361               3,322,730
                                                                     
Cash and cash equivalents                   2,910                   4,017
Restricted cash                            52,683                  68,063
Accounts receivable                        12,648                  58,582
Other assets (net of amortization of                           
$30,510 at June 30, 1997 and December                
31, 1996, respectively)                         0                       0
                                        ---------               --------- 
       Total                          $ 3,288,602             $ 3,453,392
                                        =========               =========
                   Liabilities and Partners' Equity

Liabilities:
Debt obligations                      $ 5,864,449             $ 5,834,574
Accounts payable:                                                    
       Trade                              311,405                 264,967
       Related parties                    341,719                 323,640
Interest payable                        1,049,830                 874,307
Accrued liabilities                           780                   2,975
Tenant security deposits                   39,808                  40,229
                                        ---------               ---------
       Total liabilities                7,607,991               7,340,692
                                        ---------               --------- 
Partners' equity                       (4,319,389)             (3,887,300)
                                        ---------               ---------
       Total                          $ 3,288,602             $ 3,453,392
                                        =========               =========

The accompanying notes are an integral part of these financial statements.
<PAGE>
                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF OPERATIONS
   For the Three Months and Six Months Ended June 30, 1997 and 1996
                              (Unaudited)

                                Three months                  Six months
                                ended June 30,              ended June 30,
                              1997         1996          1997            1996

Revenues:                                                    
   Rental income            $106,926     $124,346      $208,537     $  230,796
   Interest income                87           87           232            172
                             -------      -------       -------        -------
   Total revenues            107,013      124,433       208,769        230,968
                             -------      -------       -------        -------
Costs and expenses:                                                
   Rental operations          68,396       91,415       176,629        243,391
   General and                                                     
      administrative          17,460       40,500        34,920         81,000
   Interest                  157,697      742,478       314,888        861,021
   Depreciation and                                             
      amortization            57,211       79,147       114,421        158,452
                             -------      -------       -------        -------
   Total costs and                                                 
      expenses               300,764      953,540       640,858      1,343,864
                             -------      -------       -------      ---------
Net loss                   ($193,751)   ($829,107)    ($432,089)   ($1,112,896)
                             =======      =======       =======      =========
Net loss per limited                                                   
   partnership unit        ($  16.53)   ($  70.70)    ($  36.85)   ($    94.90)
                             =======      =======       =======      ========= 

The accompanying notes are an integral part of these financial statements.
<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                 CONSOLIDATED STATEMENTS OF CASH FLOWS
            For the Six Months Ended June 30, 1997 and 1996
                              (Unaudited)

                                                       Six months ended
                                                            June 30,
                                                     1997            1996

Cash flows from operating activities:                                         
 Net loss                                        ($432,089)     ($1,112,896)
 Adjustments to reconcile net loss to net                                     
 cash used in operating activities:                                           
 Depreciation and amortization                     114,421          158,452
 Changes in assets and liabilities:                                           
 Decrease (increase) in restricted cash             15,380          (15,417)
 Decrease in accounts receivable                    45,934            1,028
 Increase (decrease) in accounts payable - trade    46,437          (57,671)
 Increase in accounts payable - related parties     18,079          201,127
 Increase in accounts payable - taxes                    0           25,393
 Increase (decrease) in interest payable           175,523         (514,482)
 Decrease in accrued liabilities                    (2,195)            (752)
 (Decrease) increase in tenant security deposits      (421)          12,705
                                                   -------        ---------
Net cash used in operating activities              (18,931)      (1,302,513)
                                                   -------        --------- 
Cash flows from investing activities:                                         
 Capital expenditures                              (12,051)         (28,022)
                                                   -------        ---------
Net cash used in investing activities              (12,051)         (28,022)
                                                   -------        ---------
Cash flows from financing activities:                                         
 Proceeds from debt financing                       29,875        1,327,081
                                                   -------        ---------
Net cash provided by  financing activities          29,875        1,327,081
                                                   -------        ---------
Decrease in cash and cash equivalents               (1,107)          (3,454)
                                                                              
Cash and cash equivalents at beginning of period     4,017            4,571
                                                   -------        ---------
Cash and cash equivalents at end of period        $  2,910       $    1,117
                                                   =======        =========

The accomanying notes are an integral part of these financial statements.
<PAGE>

                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)

              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)


NOTE 1 - BASIS OF PRESENTATION

The   unaudited  consolidated  financial  statements  of   Diversified
Historic  Investors  (the "Registrant") and related  notes  have  been
prepared  pursuant to the rules and regulations of the Securities  and
Exchange  Commission.  Accordingly, certain information  and  footnote
disclosures  normally  included in financial  statements  prepared  in
accordance  with  generally accepted accounting principles  have  been
omitted  pursuant  to  such rules and regulations.   The  accompanying
consolidated financial statements and related notes should be read  in
conjunction  with the audited financial statements in  Form  10-K  and
notes thereto, in the Registrant's Annual Report on Form 10-K for  the
year ended December 31, 1996.

The  information furnished reflects, in the opinion of management, all
adjustments, consisting of normal recurring accruals, necessary for  a
fair presentation of the results of the interim periods presented.
<PAGE>
                      PART II - OTHER INFORMATION

Item 1.             Legal Proceedings

                To  the best of its knowledge, Registrant is not party
to,  nor  is any of its property the subject of, any pending  material
legal proceedings.

Item  4.            Submission of Matters to a Vote of Security Holders

                No matter was submitted during the quarter covered  by
this report to a vote of security holders.

Item 6.             Exhibits and Reports on Form 8-K

                (a) Exhibit
                    Number     Document

                      3        Registrant's  Amended and Restated  Certificate
                               of   Limited   Partnership  and  Agreement   of
                               Limited  Partnership, previously filed as  part
                               of    Amendment    No.   2   of    Registrant's
                               Registration  Statement  on  Form   S-11,   are
                               incorporated herein by reference.
                                                
                     21        Subsidiaries  of the Registrant are  listed  in
                               Item  2.  Properties on Form  10-K,  previously
                               filed and incorporated herein by reference.

                (b) Reports on Form 8-K:

                    No  reports  were  filed  on  Form  8-K  during  the
                    quarter ended June 30, 1997.
                  
<PAGE>
                              SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of
1934,  Registrant  has duly caused this report to  be  signed  on  its
behalf by the undersigned, thereunto duly authorized.

Date: August 25, 1997       DIVERSIFIED HISTORIC INVESTORS

                            By: Diversified Historic Advisors, General Partner
                                         
                                By: EPK, Inc., Partner
                                                  
                                    By: /s/ Donna M. Zanghi
                                        -----------------------
                                        DONNA M. ZANGHI,
                                        Secretary and Treasurer