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


BALANCE SHEETS(UNAUDITED)
MARCH 31, 1998 AND DECEMBER 31, 1997

<TABLE>
<CAPTION>
                                          March 31,      December 31,
                                            1998             1997 
<S>                                      <C>              <C>
ASSETS

CASH AND CASH EQUIVALENTS                $  396,696       $  399,704 
PROPERTY                                  3,269,896        3,387,178
 
INVESTMENT IN REAL ESTATE
  JOINT VENTURE                             305,738          313,650

OTHER ASSETS                                 31,629           31,604  

TOTAL                                    $4,003,959       $4,132,136 

LIABILITIES AND PARTNERS' EQUITY

LIABILITIES                              $  607,683       $  612,450 

 
PARTNERS' EQUITY:
     General Partners                       (73,818)         (72,584)
     Limited Partners                     3,470,094        3,592,270 

  Total partners' equity                  3,396,276        3,519,686

TOTAL                                    $4,003,959       $4,132,136

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

STATEMENTS OF INCOME (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997

<TABLE>
                                         March 31,        March 31,
                                           1998             1997  
REVENUES:
<S>                                         <C>             <C>
Rental Income                            $  447,309       $  417,855
Interest                                      1,836            1,783
     Total revenues                         449,145          419,638 

EXPENSES:

Operating Expenses                          254,454           257,103 
General and administrative                   70,162            64,130
     Total expenses                         324,616           321,233 

INCOME BEFORE EQUITY IN INCOME 
   OF REAL ESTATE JOINT VENTURE             124,528            98,405
   EQUITY IN INCOME OF REAL ESTATE           24,789            20,046 

NET INCOME                               $  149,317        $  118,451 


AGGREGATE NET INCOME ALLOCATED TO:
    Limited partners                     $  147,824        $  117,266 
    General partners                          1,493             1,185

TOTAL                                    $  149,317        $  118,451 

NET INCOME PER LIMITED 
   PARTNERSHIP UNIT                      $     6.16        $     4.89 


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, 1998 AND 1997

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

EQUITY AT DECEMBER 31, 1997           ($72,584)     $3,592,270   $3,519,686 

NET INCOME                               1,493         147,824      149,317 
DISTRIBUTIONS                           (2,727)       (270,000)    (272,727)

EQUITY AT MARCH 31, 1998              ($73,818)     $3,470,094   $3,396,276 


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

STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997

<TABLE>
<CAPTION>
                                      March 31,         March 31,
                                        1998              1997
                                                            
<S>                                    <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income                             $ 149,317        $118,451  

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           7,911          10,852

     Changes in assets and 
      	liabilities:

     Increase in other assets                (25)        (27,240)    
    (Decrease)Increase in liabilities     (4,767)         34,267

Net cash provided by 
  operating activities                    269,719        253,613 


CASH FLOWS FROM FINANCING ACTIVITIES -

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

NET DECREASE IN CASH AND 
   CASH EQUIVALENTS                       (3,008)        (19,114) 

CASH AND CASH EQUIVALENTS:

     At beginning of period              399,704         389,413 
     At end of period                  $ 396,696        $370,299 


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, 1998, and for
the periods ended March 31, 1998, and 1997 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, 1998, 
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        ( 6,129,742)
        Property - Net                       $  3,269,896
</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, 1998, and 1997 is as follows:
<TABLE>
                                   1998                    1997
     <S>                           <C>                   <C>
     Revenue                     $166,906                $156,705             
     Operating Expenses            84,280                  89,885
     Net Income                  $ 82,626                $ 66,820
 
</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.