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


BALANCE SHEETS(UNAUDITED)
MARCH 31, 1997 AND DECEMBER 31, 1996

<TABLE>
<CAPTION>
                                          March 31,      December 31,
                                            1997             1996 
<S>                                       <C>            <C>
ASSETS

CASH AND CASH EQUIVALENTS                $  370,299       $  389,413 
PROPERTY                                  3,739,029        3,856,310
 
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             353,791          364,645

OTHER ASSETS                                 48,924           21,684  

TOTAL                                    $4,512,043       $4,632,052 

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES                              $  644,273       $  610,006 

 
PARTNERS' EQUITY:
     General Partners                       (69,102)         (67,560)
     Limited Partners                     3,936,872        4,089,606 

  Total partners' equity                  3,867,770        4,022,046

TOTAL                                    $4,512,043       $4,632,052

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

STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996

<TABLE>
                                         March 31,        March 31,
                                           1997             1996  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  417,855       $  407,059
Interest                                      1,783            2,356
     Total revenues                         419,638          409,415 

EXPENSES:

Operating Expenses                          257,103           248,645 
General and administrative                   64,130            65,070
     Total expenses                         321,233           313,715 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE              98,405            95,700
EQUITY IN INCOME OF REAL ESTATE              20,046            22,346

NET INCOME                               $  118,451        $  118,046 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  117,266        $  116,866 
    General partners                          1,185             1,180

TOTAL                                    $  118,451        $  118,046 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     4.89        $     4.87 


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 (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996

<TABLE>
<CAPTION>
                                      GENERAL        LIMITED
                                      PARTNERS       PARTNERS       TOTAL
<S>                                   <C>            <C>            <C>

EQUITY AT DECEMBER 31, 1995           ($61,424)     $4,697,074   $4,635,650 

NET INCOME                               1,180         116,866      118,046 
DISTRIBUTIONS                           (2,727)       (270,000)    (272,727)

EQUITY AT MARCH 31, 1996              ($62,971)     $4,543,940   $4,480,969

EQUITY AT DECEMBER 31, 1996           ($67,560)     $4,089,606   $4,022,046

NET INCOME                               1,185         117,266      118,451
DISTRIBUTIONS                           (2,727)       (270,000)    (272,727)

EQUITY AT MARCH 31, 1997              ($69,102)     $3,936,872   $3,867,770


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

STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996

<TABLE>
<CAPTION>
                                      March 31,         March 31,
                                        1997              1996
                                                            
<S>                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                             $ 118,451        $118,046  

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

     Depreciation                        117,283         117,283 
     Distributions in excess 
      	of earnings in 
       real estate joint venture          10,852           9,004

     Changes in assets and 
      	liabilities:

     (Increase)Decrease in other assets  (27,240)         11,948    
     Increase in liabilities              34,267           4,472

Net cash provided by 
  operating activities                   253,613         260,753 

CASH FLOWS FROM INVESTING ACTIVITIES -

     Purchase of property 
       and equipment                          0          (19,799)   

CASH FLOWS FROM FINANCING ACTIVITIES -

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

NET DECREASE IN CASH AND 
   CASH EQUIVALENTS                      (19,114)        (31,773) 

CASH AND CASH EQUIVALENTS:

     At beginning of period              389,413         445,657 
     At end of period                  $ 370,299        $413,884 


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, 1997, and for
the periods ended March 31, 1997, and 1996 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, 1997, 
is as follows:

<TABLE>
        <S>                                 <C>
        Land                                 $  2,305,310
        Buildings and improvements              7,071,497 
        Equipment                                  22,831
        Total                                   9,399,638
        Less: Accumulated Depreciation        ( 5,660,609)
        Property - Net                       $  3,739,029
</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, 1997, and 1996 is as follows:
<TABLE>
                                   1997                    1996
     <S>                           <C>                   <C>
     Revenue                     $156,705                $155,364             
     Operating Expenses            89,885                  80,878
     Net Income                  $ 66,820                $ 74,486
 
</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.