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, 1998
                               --------------------------------------- 
                                  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.)

                1609 Walnut Street, Philadelphia, PA  19103
----------------------------------------------------------------------
  (Address of principal executive offices)              (Zip Code)

Registrant's telephone number, including area code  (215) 557-9800

                                     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, 1998 (unaudited)
             and December 31, 1997
             Consolidated Statements of Operations - Three Months and
             Six Months Ended June 30, 1998 and 1997 (unaudited)
             Consolidated Statements of Cash Flows - Six Months Ended
             June 30, 1998 and 1997 (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,  1998,  Registrant  had  cash   of
approximately  $6,233.   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, 1998, Registrant had  restricted
cash  of  $60,158  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.  The Registrant has first mortgages in place in each  of  its
remaining  three properties that 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,  to  pay  debt  service  on   the   past-due
subordinate mortgage with respect to the Third Quarter or to  pay  any
debt  service  on  the two accrual mortgages with  respect  to  Wistar
Alley.

                     It  is the Registrant's intention to continue  to
hold  the  properties until they can no longer meet the  debt  service
requirements  (or with respect to the Third Quarter and Wistar  Alley,
the  lender seeks payment on the past due mortgage) 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.

               (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, Wistar Alley and Smythe Stores has agreed to  fund
capital expenditures at terms similar to the first mortgage.

                      The  Registrant  will  seek  to  refinance   the
outstanding  mortgages  on Third Quarter and Wistar  Alley  which  are
scheduled to mature in October 1998.  There can be no assurances  that
such  financing will be available and, if not, the properties will  be
marketed  for  sale.  Failure to obtain refinancing  could  result  in
foreclosure on and loss of these properties.

               (3)  Results of Operations

                     During  the  second quarter of  1998,  Registrant
incurred a net loss of $176,022 ($15.01 per limited partnership  unit)
compared  to  a  net loss of $193,751 ($16.53 per limited  partnership
unit)  for the same period in 1997.  For the first six months of 1998,
the  Registrant  incurred a net loss of $395,400 ($33.72  per  limited
partnership  unit)  compared to a net loss  of  $432,089  ($36.85  per
limited partnership unit) for the same period in 1997.

                     Rental income increased $13,042 from $106,926  in
the  second  quarter of 1997 to $119,967 in the same period  in  1998.
The  increase  resulted from an increase in rental  income  at  Wistar
Alley  due  to  an  increase in average occupancy  (85%  to  95%)  and
increases at Smythe Stores and Third Quarter due to increases  in  the
average rental rates.

                     Rental income increased $28,108 from $208,537 for
the  first six months of 1997 to $236,645 for the same period in 1998.
The  increase  resulted from an increase in rental  income  at  Wistar
Alley  due  to  an  increase in average occupancy  (86%  to  94%)  and
increases at Smythe Stores and Third Quarter due to increases  in  the
average rental rates.

                     Expense for rental operations decreased by $6,573
from  $68,396  in the second quarter of 1997 to $61,823  in  the  same
period  in  1998 and decreased by $13,133 from $176,629 for the  first
six  months  of  1997 to $163,496 for the same period  in  1998.   The
decrease in the loss for the second quarter of 1997 to the same period
in  1998  is  due to a decrease in condominium fees due to  a  special
assessment charged by the condominium association in 1997 for  capital
improvements to the building at Smythe Stores partially offset  by  an
increase in maintenance expense due to a higher turnover of apartments
units in 1998 at both Smythe Stores and Third Quarter.

                     Losses incurred during the second quarter at  the
Registrant's properties amounted to $150,000, compared to  a  loss  of
approximately $167,000 for the same period in 1997.  For the first six
months of 1998 the Registrant's properties incurred a loss of $343,000
compared to approximately $377,000 for the same period in 1997.

                    In the second quarter of 1998, Registrant incurred
a  loss  of $91,000 at the Smythe Stores Condominium complex including
$18,000 of depreciation expense, compared to a loss of $96,000 in  the
second  quarter  of  1997, including $18,000 of depreciation  expense.
The  decrease in the loss for the second quarter of 1997 to  the  same
period  in  1998 is due to a decrease in condominium  fees  due  to  a
special assessment charged by the condominium association in 1997  for
capital  improvements to the building partially offset by an  increase
in maintenance expense due to a higher turnover of apartments units in
1998.

               For the first six months of 1998, Registrant incurred a
loss  of  $186,000 at the Smythe Stores Condominium complex  including
$37,000  of  depreciation expense, compared to a loss of $201,000  for
the  same  period in 1997, including $36,000 of depreciation  expense.
The  decrease in the loss for the first six months of 1997 to the same
periods  in  1998  is due to an increase in rental income  due  to  an
increase  in  the  average rental rates combined with  a  decrease  in
condominium  fees  partially  offset by  an  increase  in  maintenance
expense.   Condominium  fees decreased due  to  a  special  assessment
charged   by   the  condominium  association  in  1996   for   capital
improvements to the building and maintenance expense increased due  to
a higher turnover of apartments units in the first six months of 1998.

                    In the second quarter of 1998, Registrant incurred
a  loss  of $38,000 at Third Quarter Apartments, including $18,000  of
depreciation expense, compared to a loss of $36,000 including  $18,000
of  depreciation  expense in the second quarter of 1997  and  for  the
first  six  months  of 1998, Registrant incurred a  loss  of  $93,000,
including  $36,000  of depreciation expense, compared  to  a  loss  of
$91,000 for the same period in 1997, including $35,000 of depreciation
expense.  The increase in the loss for both the second quarter and the
first six months of 1997 to the same periods in 1998 is the result  of
an  increase  in  maintenance expense due  to  a  higher  turnover  of
apartment  units partially offset by an increase in rental income  due
to an increase in the average rental rates.

                    In the second quarter of 1998, Registrant incurred
a  loss  of $21,000 at Wistar Alley, including $22,000 of depreciation
expense,   compared  to  a  loss  of  $35,000  including  $22,000   of
depreciation expense in the second quarter of 1997 and for  the  first
six  months of 1998, Registrant incurred a loss of $64,000,  including
$44,000  of  depreciation  expense, compared  to  a  loss  of  $85,000
including $43,000 of depreciation expense for the same period in 1997.
The decrease in the loss for both the second quarter and the first six
months  of  1997 to the same periods in 1998 is due to an increase  in
rental income due to an increase in the average occupancy (85% to 95%)
for  the  second  quarter and (86% to 94%)  for the first  six  months
combined with an increase in the average rental rates.
<PAGE>

                                   
                    DIVERSIFIED HISTORIC INVESTORS
                 (a Pennsylvania limited partnership)
                                   
                      CONSOLIDATED BALANCE SHEETS
                                   
                                Assets

                                         June 30, 1998         December 31, 1997
                                           (Unaudited)
Rental properties, at cost:                                          
Land                                      $   310,833             $   310,833
Buildings and improvements                  5,721,049               5,721,048
Furniture and fixtures                        128,329                 128,329
                                            6,160,211               6,160,210
                                           ----------              ----------
Less - Accumulated depreciation            (3,172,808)             (3,056,549)
                                           ----------              ----------
                                            2,987,403               3,103,661
                                                                     
Cash and cash equivalents                       6,233                     710
Restricted cash                                60,158                  68,887
Accounts receivable                            14,325                  12,469
Other  assets  (net  of  amortization   of                           
$30,510 at June 30, 1998 and December  31,                           
1997)                                               0                       0
                                           ----------              ---------- 
       Total                              $ 3,068,119             $ 3,185,727
                                           ==========              ==========
                   Liabilities and Partners' Equity

Liabilities:
Debt obligations                          $ 5,877,928             $ 5,877,215
Accounts payable:                                                    
       Trade                                  445,342                 373,122
       Related parties                        380,992                 362,739
Interest payable                            1,408,909               1,230,141
Tenant security deposits                       43,273                  37,948
Other liabilities                               5,050                   2,537
                                           ----------              ---------- 
       Total liabilities                    8,161,494               7,883,702
                                           ----------              ----------
Partners' equity                           (5,093,375)             (4,697,975)
                                           ----------              ----------  
       Total                              $ 3,068,119             $ 3,185,727
                                           ==========              ==========

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, 1998 and 1997
                              (Unaudited)

                                     Three months              Six months
                                    Ended June 30,           Ended June 30,
                                 1998        1997           1998        1997

Revenues:                   
   Rental income              $119,968     $106,926      $236,645     $208,537
   Interest income                 467           87           707          232
                               -------      -------       -------      -------
   Total revenues              120,435      107,013       237,352      208,769
                               -------      -------       -------      -------
Costs and expenses:       
   Rental operations            61,823       68,396       163,496      176,629
   General and                                                    
      Administrative            17,460       17,460        34,920       34,920
   Interest                    159,044      157,697       318,077      314,888
   Depreciation and                                                
      Amortization              58,130       57,211       116,259      114,421
                               -------      -------       -------      -------
   Total costs and                                                  
      Expenses                 296,457      300,764       632,752      640,858
                               -------      -------       -------      -------
Net loss                     ($176,022)   ($193,751)    ($395,400)   ($432,089)
                               =======      =======       =======      =======
Net loss per limited     
   partnership unit          ($  15.01)   ($  16.53)    ($  33.72)   ($  36.85)
                               =======      =======       =======      ======= 

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, 1998 and 1997
                              (Unaudited)

                                                             Six months ended
                                                                June 30,
                                                           1998         1997

Cash flows from operating activities:                                         
 Net loss                                               ($395,400)   ($432,089)
 Adjustments to reconcile net loss to net cash
   provided by (used in) operating activities:     
 Depreciation and amortization                            116,259      114,421
 Changes in assets and liabilities:                                           
 Decrease in restricted cash                                8,729       15,380
 (Increase) decrease in accounts receivable                (1,856)      45,934
 Increase in accounts payable - trade                      72,222       46,437
 Increase in accounts payable - related parties            18,253       18,079
 Increase in interest payable                             178,768      175,523
 Increase (decrease) in accrued liabilities                2,513        (2,195)
 Increase (decrease) increase in tenant security deposits  5,325          (421)
                                                         -------       ------- 
Net cash provided by (used in) operating activities        4,813       (18,931)
                                                         -------       ------- 
Cash flows from investing activities:                                         
 Capital expenditures                                          0       (12,051)
                                                         -------       ------- 
Net cash used in investing activities                          0       (12,051)
                                                         -------       ------- 
Cash flows from financing activities:                                         
 Proceeds from debt financing                                710        29,875
                                                         -------       ------- 
Net cash provided by financing activities                    710        29,875
                                                         -------       ------- 
Increase (decrease) in cash and cash equivalents           5,523        (1,107)
                                                                              
Cash and cash equivalents at beginning of period             710         4,017
                                                         -------       -------
Cash and cash equivalents at end of period              $  6,233      $  2,910
                                                         =======       =======

The accompanying 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, 1997.

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.

                      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    Document
                     Number

                      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,       1998.
<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 20, 1998        DIVERSIFIED HISTORIC INVESTORS
      ---------------
                             By: Diversified Historic Advisors, General Partner
                                         
                                 By: EPK, Inc., Partner
                                             
                                     By:  /s/ Spencer Wertheimer
                                          ----------------------
                                          SPENCER WERTHEIMER
                                          President and Treasurer