October 29, 1999

		QUARTERLY REPORT TO THE LIMITED PARTNERS
			OF DSI REALTY INCOME FUND VIII


DEAR LIMITED PARTNERS:

We  are  pleased  to  enclose  the  Partnership's  unaudited  financial
statements  for  the  period  ended  September 30, 1999.  The following is
Management's  discussion  and  analysis  of  the  Partnership's  financial
condition  and  results  of  its  operations.

For  the  three-month periods ended September 30, 1999  and  1998, total
revenues increased 5.0% (see note below regarding gain on sale of land) from
$480,504 to $504,635 and total expenses increased 4.7% from $307,377 to
$321,936.  Equity in income of the real estate joint venture increased 2.2%
from $31,688 to $32,377.  As a result, net income increased 5.0% from $204,815
to $215,076 for the three-month period ended September 30, 1999, as compared
to the same period in 1998.  Rental revenue increased as a result of higher
unit rental rates.  Occupancy levels for the Partnership's five mini-storage
facilities averaged 84.7% for the three month period ended September 30, 1999
as compared to 85.3% for the same period in 1998.  The Partnership is
continuing its marketing efforts to attract and keep new tenants in its various
mini-storage facilities.  Operating expenses increased approximately $11,100
(4.2%) primarily as a result of higher salary and wages expense.  General and
administrative expenses increased approximately $3,400 (8.3%) primarily as a
result of higher equipment and computer lease expense.  Equity in income from
real estate joint venture remained relatively constant.

For the nine-month periods ended September 30, 1999, and 1998, total revenues
increased 2.8% (see note below regarding gain on sale of land) from $1,433,539
to $1,473,875 and total expenses increased 5.8% from $944,571 to $999,556.
Equity in income of the real estate joint venture increased 4.9% from $83,512
to $87,602.  As a result, net income decreased 1.8% from $572,480 to $561,921
for the nine-month period ended September 30, 1999, as compared to the same
in 1998.  Rental revenue increased as a result of higher unit rental rates.
Operating expenses increased approximately $57,400 (7.3%) primarily as a result
of increases in yellow pages and miscellaneous advertising costs, repairs and
maintenance, salary and wages, security and alarm service expenses and property
management fees.  Property management fees, which are based on rental income,
increased as a result of the increase in rental revenue.  General and admini-
strative expenses decreased approximately $2,400 (1.5%) primarily as a result
of lower legal and professional expense, partially offset by an increase in
equipment and computer lease expense.  Equity in income from the real estate
joint venture increased as a result of higher rental revenue, partially offset
by an increase in maintenance and repair expense.

The City of Stockton acquired 6,089 square feet or 5.4% of the Stockton
property in 1997.  In April 1998 the Partnership received $65,000 as
compensation for the acquisition.  A gain on sale of land was recorded in
the amount of $46,974, and the cost of land was reduced by $18,026.  Based
on operations since the disposition, neither cash flow from nor the value
of the remaining property appears materially impaired.

The  General  Partners will  continue  their  policy  of  funding improvements
and maintenance of Partnership  properties  with  cash  generated from
operations.  The  Partnership's financial resources  appear  to be adequate
to meet its needs.  The  General Partners anticipate distributions to Limited
Partners  to  remain  at  the  current  level  for  the  foreseeable  future.

The Year 2000 issue refers to the inability of certain computer systems to
recognize a date using "00" as the Year 2000.  The Partnership has implemented
a Year 2000 program, which has three phases: (1) identification;
(2) remediation; and (3) testing and verification.  The Partnership, as well
as the property management company and the Partnership's warehouse facilities
have completed those phases.  Computer programs have been upgraded and tested
to function properly with respect to the dates in the Year 2000 and thereafter.
Year 2000 compliance costs are nominal and have been expensed in the regular
course of business.  The Partnership provides no assurance that third-party
suppliers and customers will be compliant.  Nevertheless, the Partnership does
not beiieve that the Year 2000 issue will have a material adverse effect on
its financial condition or results of operations.

We are not enclosing a copy of the Partnership Form 10-Q as filed with the
Securities and Exchange Commission since all the information set forth
therein is contained either in this letter or in the attached financial
statements. However, if you wish to receive a copy of said report, please
send a written request to DSI Realty Income Fund VIII, P.O. Box 357, Long
Beach, California 90801.

                              Very truly yours,

                              DSI REALTY INCOME FUND VIII
                              By: DSI Properties, Inc., as
                              General Partner



                              By  /s/ Robert J. Conway
                                  ____________________________
                                 ROBERT J. CONWAY, President