October 31, 1996

		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, 1996.  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, 1996  and  1995, total
revenues  decreased  1.0%  from  $414,675 to  $410,582 and total  expenses
decreased 4.6% from $301,664 to  $287,857.  Equity in income  of  the  real
estate joint venture decreased 21.9% from  $30,888 to $24,134.  As a result, 
net income increased 2.1%  from  $143,899  to  $146,859  for the  three month 
period ended September 30, 1996, as compared  to  the  same  period in  1995.
Rental revenue remained constant as a result of higher unit rental rates,
even though average occupancy rates decreased.  Occupancy levels  for  the  
Partnership's  five  mini-storage  facilities averaged 84.1% for the three  
month period ended September 30, 1996, and 86.5% for the same period in 1995.  
The  Partnership is  continuing its advertising campaign to attract  and  
keep  new  tenants  in  its  various  mini-storage facilities.  Operating  
expenses  decreased  approximately  $14,400 (5.4%) primarily as a  result of  
lower maintenance and repair expenses.  General and administrative expenses 
remained  constant.  Equity in  income from the real estate joint venture 
decreased as a  result of lower  occupancy and  unit rental  rates  which 
resulted in decreased rental revenue for the period.

For the nine month periods ended September 30, 1996, and 1995, total revenues
decreased slightly from $1,235,829 to 1,229,003 and total expenses decreased
1.3% from $895,966 to $884,713.  Equity in income of the  real estate  joint
venture decreased 21.4% from $85,363 to $67,095.  As a result,  net  income
decreased  3.3%  from  $425,226 to  $411,385 for the nine month period ended 
September 30, 1996, as  compared to the  same period  in 1995.  The revenue 
decrease can be attributed to a decrease in sale of abandoned goods partially 
offset by a slight increase in rental income.  Operating expenses decreased
approximately $13,100 (1.7%) primarily as a result of decreases in yellow
page advertising costs, maintenance and repair and real estate tax expenses,
partially offset by an increase in legal and professional fees.  General
and administrative expenses remained  relatively constant.  Equity in 
income from the real estate joint venture decreased as a result of lower 
occupancy and unit rental rates which resulted in decreased rental revenue
for the period and higher maintenance and repair expenses.

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.

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