FORM 10-QSB--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        QUARTERLY OR TRANSITIONAL REPORT
                  (As last amended by 34-32231, eff. 6/3/93.)


                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934


               For the quarterly period ended September 30, 1996

                                       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 0-10255


                    SHELTER PROPERTIES I LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)

         South Carolina                                  57-0707398
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                        Identification No.)

One Insignia Financial Plaza, P.O. Box 1089
      Greenville, South Carolina                            29602
(Address of principal executive offices)                  (Zip Code)

                   Issuer's telephone number (864) 239-1000

Check whether the issuer (1) 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      .
                         PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

a)                  SHELTER PROPERTIES I LIMITED PARTNERSHIP

                           CONSOLIDATED BALANCE SHEET
                                  (Unaudited)

                               September 30, 1996




Assets
  Cash and cash equivalents:
     Unrestricted                                               $ 1,362,338
     Restricted--tenant security deposits                           134,346
  Accounts receivable                                                11,246
  Escrow for taxes                                                  158,145
  Restricted escrows                                                396,796
  Other assets                                                      208,601
  Investment properties:
     Land                                       $  1,427,509
     Buildings and related personal property      17,781,005
                                                  19,208,514
     Less accumulated depreciation               (12,788,289)     6,420,225

                                                                $ 8,691,697

Liabilities and Partners' Deficit
  Accounts payable                                              $       962
  Tenant security deposits                                          135,420
  Accrued taxes                                                     118,241
  Other liabilities                                                 282,169
  Mortgage notes payable                                          9,142,806

Partners' Deficit
  General partners                              $    (49,249)
  Limited partners (15,000 units
     issued and outstanding)                        (938,652)      (987,901)

                                                                $ 8,691,697

          See Accompanying Notes to Consolidated Financial Statements

b)                        SHELTER PROPERTIES I LIMITED PARTNERSHIP

                         CONSOLIDATED STATEMENTS OF OPERATIONS
                                      (Unaudited)


                                    Three Months Ended       Nine Months Ended
                                        September 30,           September 30,
                                    1996        1995        1996        1995
Revenues:
  Rental income                 $1,127,901  $1,081,323  $3,366,667  $3,240,275
  Other income                      70,418      59,633     197,347     159,852
     Total revenues              1,198,319   1,140,956   3,564,014   3,400,127
Expenses:
  Operating                        401,859     364,205   1,159,015   1,131,900
  General and administrative        32,855      88,170     112,507     247,679
  Maintenance                      199,459     186,164     510,814     418,690
  Depreciation                     159,507     188,284     466,673     550,404
  Interest                         232,703     240,096     703,830     724,350
  Property taxes                    52,541      59,077     178,681     185,787
     Total expenses              1,078,924   1,125,996   3,131,520   3,258,810

  Net income                    $  119,395  $   14,960  $  432,494  $  141,317

Net income allocated
  to general partners (1%)      $    1,194  $      149  $    4,325  $    1,413
Net income allocated
  to limited partners (99%)        118,201      14,811     428,169     139,904

                                $  119,395  $   14,960  $  432,494  $  141,317
Net income per
  limited partnership unit      $     7.88  $      .99  $    28.54  $     9.33

              See Accompanying Notes to Consolidated Financial Statements

c)                       SHELTER PROPERTIES I LIMITED PARTNERSHIP

                 CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                      (Unaudited)
<TABLE>
<CAPTION>

                                   Limited
                                 Partnership   General     Limited
                                    Units      Partners    Partners         Total
<S>                                <C>      <C>         <C>            <C>
Original capital contributions      15,000   $  2,000    $15,000,000    $15,002,000

Partners' deficit
  at December 31, 1995              15,000   $(53,520)   $(1,361,481)   $(1,415,001)

Distributions to partners                         (54)        (5,340)        (5,394)

Net income for the nine months
  ended September 30, 1996                      4,325        428,169        432,494

Partners' deficit at
  September 30, 1996                15,000   $(49,249)   $ (938,652)    $  (987,901)

<FN>
              See Accompanying Notes to Consolidated Financial Statements
</TABLE>

d)                      SHELTER PROPERTIES I LIMITED PARTNERSHIP

                         CONSOLIDATED STATEMENTS OF CASH FLOWS
                                      (Unaudited)
<TABLE>
<CAPTION>
                                                               Nine Months Ended
                                                                  September 30,
                                                               1996           1995
<S>                                                       <C>             <C>
Cash flows from operating activities:
  Net income                                               $  432,494      $ 141,317
  Adjustments to reconcile net income to net
   cash provided by operating activities:
    Depreciation                                              466,673        550,404
    Amortization of discounts and loan costs                   91,263         90,049
    Change in accounts:
     Restricted cash                                             (618)        (5,053)
     Accounts receivable                                        1,366            984
     Escrows for taxes                                        (71,822)       (69,468)
     Other assets                                              (5,964)        (3,844)
     Accounts payable                                        (140,454)       (13,931)
     Tenant security deposit liabilities                        3,535          6,890
     Accrued taxes                                            118,241        123,370
     Other liabilities                                         (1,710)        (6,569)

      Net cash provided by operating activities               893,004        814,149

Cash flows from investing activities:
  Property improvements and replacements                     (200,267)      (211,821)
  Deposits to restricted escrows                              (38,349)       (49,276)
  Receipts from restricted escrows                                 --         31,869

      Net cash used in investing activities                  (238,616)      (229,228)

Cash flows from financing activities:
  Payments on mortgage notes payable                         (292,131)      (269,328)
  Distributions to partners                                    (5,394)      (156,998)
  Loan costs                                                  (62,433)            --

      Net cash used in financing activities                  (359,958)      (426,326)

Net increase in cash                                          294,430        158,595

Cash and cash equivalents at beginning of period            1,067,908        757,301
Cash and cash equivalents at end of period                 $1,362,338      $ 915,896

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $  612,567      $ 635,369

<FN>
           See Accompanying Notes to Consolidated Financial Statements
</TABLE>


e)                   SHELTER PROPERTIES I LIMITED PARTNERSHIP

                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of Shelter Properties I Limited
Partnership (the "Partnership") have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the
instructions to Form 10-QSB and Article 310(b) of Regulation S-B.  Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.  In the
opinion of Shelter Realty I Corporation (the "Corporate General Partner"), all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the nine month
period ended September 30, 1996, are not necessarily indicative of the results
that may be expected for the fiscal year ending December 31, 1996.  For further
information, refer to the financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-KSB for the year ended December 31,
1995.

Certain reclassifications have been made to the 1995 information to conform to
the 1996 presentation.

Cash and Cash Equivalents:

Unrestricted - Unrestricted cash includes cash on hand and in banks and
Certificates of Deposit with original maturities less than 90 days.  At certain
times, the amount of cash deposited at a bank may exceed the limit on insured
deposits.

Restricted cash - tenant security deposits - The Partnership requires security
deposits from lessees for the duration of the lease and such deposits are
considered restricted cash.  Deposits are refunded when the tenant vacates,
provided the tenant has not damaged its space and is current on its rental
payments.

NOTE B - RECONCILIATION OF CASH FLOWS

The following is a reconciliation of the subtotal on the accompanying statements
of cash flows captioned "net cash provided by operating activities" to "net cash
used in operations," as defined in the partnership agreement.  However, "net
cash used in operations" should not be considered an alternative to net income
as an indicator of the Partnership's operating performance or to cash flows as a
measure of liquidity.

                                                    Nine Months Ended
                                                       September 30,
                                                   1996             1995

Net cash provided by operating activities       $ 893,004        $ 814,149
  Payments on mortgage notes payable             (292,131)        (269,328)
  Property improvements and replacements         (200,267)        (211,821)
  Change in restricted escrows, net               (38,349)         (17,407)
  Changes in reserves for net operating
   liabilities                                     97,426          (32,379)
  Additional reserves                            (460,000)        (285,000)

      Net cash used in operations               $    (317)       $  (1,786)


In 1996 and 1995, the Corporate General Partner believed it to be in the best
interest of the Partnership to reserve an additional $460,000 and $285,000,
respectively, to fund continuing capital improvements and maintenance items at
the four properties.  In addition to the capital improvements, the Corporate
General Partner reserved additional amounts in 1996 for costs associated with
the possible refinancing of certain of the debt encumbering the Partnership's
investment properties.


NOTE C - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
partnership activities.  The Partnership Agreement provides for payments to
affiliates for services and the reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership.  Property management fees paid to
affiliates of Insignia Financial Group, Inc., during the nine months ended
September 30, 1996 and 1995, are included in operating expenses on the
consolidated statements of operations and are reflected in the following table.
The Corporate General Partner and its affiliates received reimbursements and
fees as reflected in the following table:

                                                      Nine Months Ended
                                                         September 30,
                                                     1996             1995

Property management fees                          $175,676          $168,367
Reimbursement for services of affiliates            65,016            47,758
Due to general partners                            100,797           100,797

Included in "reimbursements for services of affiliates" for 1996 is $2,930 in
reimbursements for construction oversight costs.

The Partnership insures its properties under a master policy through an agency
and insurer unaffiliated with the Corporate General Partner.  An affiliate of
the Corporate General Partner acquired, in the acquisition of a business,
certain financial obligations from an insurance agency which was later acquired
by the agent who placed the current year's master policy.  The current agent
assumed the financial obligations to the affiliate of the Corporate General
Partner who receives payments on these obligations from the agent.  The amount
of the Partnership's insurance premiums accruing to the benefit of the affiliate
of the Corporate General Partner by virtue of the agent's obligations is not
significant.


NOTE D - CONTINGENCIES

The Corporate General Partner owns 100 Limited Partnership Units ("Units").  On
or about April 26 and 27, 1995, six entities ("Affiliated Purchaser") affiliated
with the Partnership commenced tender offers for limited partner interests in
six limited partnerships, including the Partnership (collectively, the "Shelter
Properties Partnerships").  On May 27, 1995, the Affiliated Purchaser acquired
3,999 units of the Partnership pursuant to the tender offer.  On or about May
12, 1995, in the United States District Court for the District of South
Carolina, certain limited partners of the Shelter Properties Partnerships
commenced a lawsuit, on behalf of themselves, on behalf of a putative class of
plaintiffs, and derivatively on behalf of the partnerships, challenging the
actions taken by defendants (including Insignia, the acquiring entities and
certain officers of Insignia) in the management of the Shelter Properties
Partnerships and in connection with the tender offers and certain other matters.

The plaintiffs alleged that, among other things:  (i) the defendants
intentionally mismanaged the partnerships and acted contrary to the limited
partners' best interests by prolonging the existence of the partnerships in
order to perpetuate the revenues derived by Insignia (an affiliate of the
Corporate General Partner) and its affiliates from the partnerships, (ii) the
defendants' actions reduced the demand for the partnerships' limited partner
interests in the limited resale market by artificially depressing the trading
prices for limited partners interests in order to create a favorable environment
for the tender offers; (iii) through the tender offers, the acquiring entities
sought to acquire effective voting control over the partnerships while paying
highly inadequate prices; and (iv) the documents disseminated to the class in
connection with the tender offers contained false and misleading statements and
omissions of material facts concerning such issues as the advantages to limited
partners of tendering pursuant to the tender offers, the true value of the
interest, the true financial condition of the partnerships, the factors
affecting the likelihood that properties owned by the partnerships will be sold
or liquidated in the near future, the liquidity and true value of the limited 
partner interests, the reasons for the limited secondary market for limited 
partner interests, and the true nature of the market for the underlying real 
estate assets owned by the Shelter Properties Partnerships all in violation of 
the federal securities laws.

On September 27, 1995, the parties entered into a stipulation to settle the
matter.  The principal terms of the stipulation require supplemental payments to
tendering limited partners aggregating approximately $6 million to be paid by
the Affiliated Purchaser, of which approximately $570,000 is Shelter Properties
I's portion; waiver by the Shelter Properties Partnerships' general partners of
any right to certain proceeds from a sale or refinancing of the partnerships'
properties; some restrictions on Insignia's ability to vote the limited partner
interests it acquired; payment of $1.25 million (which amount is divided among
the various partnerships and acquiring entities) for plaintiffs' attorney fees
and expenses in the litigation; and general releases of all the defendants.

On June 24, 1996, after notice to the class and a hearing on the fairness and
adequacy of notice and the terms of settlement, the court orally approved the
settlement.  The court signed the formal order on July 30, 1996.  No appeal was
filed within thirty days after the court entered the formal order and the
settlement became effective on August 30, 1996.  The Affiliated Purchaser made
the payments to investors in accordance with the settlement in early September
1996.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Partnership's investment properties consists of four apartment complexes.
The following table sets forth the average occupancy of the properties for the
nine months ended September 30, 1996 and 1995:


                                                         Average
                                                        Occupancy
Property                                               1996    1995

Quail Hollow Apartments
 West Columbia, South Carolina                          96%    94%

Windsor Hills Apartments
 Blacksburg, Virginia                                   94%    96%

Rome Georgian Apartments (Heritage Pointe)
 Rome, Georgia                                          87%    91%

Stone Mountain West Apartments
 Stone Mountain, Georgia                                95%    97%


The Corporate General Partner attributes the decrease in occupancy at Heritage
Pointe Apartments to management's efforts to reposition the tenant base.

Management is improving the appearance of the property and increasing resident
qualification standards in order to reduce fluctuations in occupancy, repairs,
and delinquencies normally associated with college tenants.  Management also
renamed the property from Rome Georgian Apartments to Heritage Pointe as a part
of the marketing campaign.  With these improvements, management expects a steady
increase in occupancy in future quarters.

The Partnership's net income for the nine months ended September 30, 1996, was
$432,494 with the third quarter having income of $119,395.  The Partnership
reported net income of $141,317 and net income of $14,960 for the corresponding
periods in 1995.  The increase in net income is attributable to an increase in
rental and other income, a decrease in general and administrative expense,
depreciation expense, and property tax expense for the three and nine months
ended September 30, 1996.  Rental income increased as a result of rate increases
at all of the Partnership's investment properties.  Other income increased due
to an increase in fees related to tenant turnover, rate increases for pet and
application fees and an increase in interest income.  The increase in interest
income was due to an increase in interest rates and cash reserves.  General and
administrative expense decreased in 1996 due to the decrease in legal and
professional fees associated with the 1995 tender offers.  Depreciation expense
decreased as a portion of the original cost of the buildings became fully
depreciated during the year ended December 31, 1995. Property tax expense
decreased due to a reduction in the assessment values for Heritage Pointe and
Stone Mountain West.

Partially offsetting the increase in net income was an increase in maintenance
expense and operating expense.  Maintenance expense increased due to increased
interior and exterior improvements, landscaping, yards and grounds repair,
parking lot repair, and wallpaper expense incurred to maintain and improve the
appeal of all properties within the Partnership.  Also contributing to the
increase in maintenance expense was the cost of resurfacing the tennis court at
Quail Hollow and an increase in snow removal at Windsor Hills due to the harsh
winter.  For the three months ended September 30, 1996, operating expense
increased primarily due to the increase in management fees resulting from
increased revenues. Advertising costs, which are included in operating expense,
increased at Heritage Pointe in response to low occupancy percentages and at
Stone Mountain due to special promotions and tenant concessions as a result of
the negative impact the Atlanta Summer Olympic Games had at the pyroperty.

As part of the ongoing business plan of the Partnership, the Corporate General
Partner monitors the rental market environment of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expense.  As part of
this plan, the Corporate General Partner attempts to protect the Partnership
from the burden of inflation-related increases in expenses by increasing rents
and maintaining a high overall occupancy level.  However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Corporate General Partner will be able to sustain such a plan.

At September 30, 1996, the Partnership had unrestricted cash of $1,362,338 as
compared to $915,896 at September 30, 1995.  Net cash provided by operating
activities increased for the nine months ended September 30, 1996, as a result
of the increase in net income discussed above.  This increase was offset by a
decrease in accounts payable due to the timing of payments to vendors.  Net cash
used in investing activities increased for the nine months ended September 30,
1996, as compared to the same period in 1995 due to an increase in net deposits
to restricted escrows.  Net deposits to restricted escrows increased in 1996 due
to reserves being used in the prior year to fund capital improvements.  Net cash
used in financing activities decreased in 1996 due to a decrease in
distributions made to partners during the nine months ended September 30, 1996.
Offsetting this decrease was an increase in costs incurred as a result of the
possible refinancing of certain of the debt encumbering the Partnership's
investment properties.

The Partnership has no material capital programs scheduled to be performed in
1996, although certain routine capital expenditures and maintenance expenses
have been budgeted.  These capital expenditures and maintenance expenses will be
incurred only if cash is available from operations or is received from the
capital reserve account.

The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership.  Such assets are currently thought
to be sufficient for any near-term needs of the partnership.  The mortgage
indebtedness of $9,142,806, net of discount, is amortized over varying periods.
In addition, the mortgage notes require balloon payments ranging from November
15, 2002 to May 1, 2006, at which time the properties will either be refinanced
or sold. The Corporate General Partner is currently assessing the feasibility of
refinancing the mortgages encumbering Quail Hollow, Heritage Pointe and Stone
Mountain West. Future cash distributions will depend on the levels of net cash
generated from operations, refinancings, property sales and the availability of
cash reserves. During the nine months ended September 30, 1996, distributions in
the amount of $5,394 were paid on behalf of the partners to the State of South
Carolina related to the taxable income generated by Quail Hollow in 1995.
During the nine months ended September 30, 1995, distributions in the amount of
$150,000 were declared and paid in addition to the distribution paid on behalf
of the partners to the State of South Carolina related to the 1994 taxable
income on Quail Hollow.


                           PART II - OTHER INFORMATION


ITEM 1.LEGAL PROCEEDINGS

The Corporate General Partner owns 100 Limited Partnership Units ("Units").  On
or about April 26 and 27, 1995, six entities ("Affiliated Purchaser") affiliated
with the Partnership commenced tender offers for limited partner interests in
six limited partnerships, including the Partnership (collectively, the "Shelter
Properties Partnerships").  On May 27, 1995, the Affiliated Purchaser acquired
3,999 units of the Partnership pursuant to the tender offer.  On or about May
12, 1995, in the United States District Court for the District of South
Carolina, certain limited partners of the Shelter Properties Partnerships
commenced a lawsuit, on behalf of themselves, on behalf of a putative class of
plaintiffs, and derivatively on behalf of the partnerships, challenging the
actions taken by defendants (including Insignia, the acquiring entities and
certain officers of Insignia) in the management of the Shelter Properties
Partnerships and in connection with the tender offers and certain other matters.

The plaintiffs alleged that, among other things:  (i) the defendants
intentionally mismanaged the partnerships and acted contrary to the limited
partners' best interests by prolonging the existence of the partnerships in
order to perpetuate the revenues derived by Insignia (an affiliate of the
Corporate General Partner) and its affiliates from the partnerships, (ii) the
defendants' actions reduced the demand for the partnerships' limited partner
interests in the limited resale market by artificially depressing the trading
prices for limited partners interests in order to create a favorable environment
for the tender offers; (iii) through the tender offers, the acquiring entities
sought to acquire effective voting control over the partnerships while paying
highly inadequate prices; and (iv) the documents disseminated to the class in
connection with the tender offers contained false and misleading statements and
omissions of material facts concerning such issues as the advantages to limited
partners of tendering pursuant to the tender offers, the true value of the
interest, the true financial condition of the partnerships, the factors
affecting the likelihood that properties owned by the partnerships will be sold
or liquidated in the near future, the liquidity and true value of the limited
partner interests, the reasons for the limited secondary market for limited
partner interests, and the true nature of the market for the underlying real
estate assets owned by the Shelter Properties Partnerships, all in violation of
the federal securities laws.

On September 27, 1995, the parties entered into a stipulation to settle the
matter.  The principal terms of the stipulation require supplemental payments to
tendering limited partners aggregating approximately $6 million to be paid by
the Affiliated Purchaser, of which approximately $570,000 is Shelter Properties
I's portion; waiver by the Shelter Properties Partnerships' general partners of
any right to certain proceeds from a sale or refinancing of the partnerships'
properties; some restrictions on Insignia's ability to vote the limited partner
interests it acquired; payment of $1.25 million (which amount is divided among
the various partnerships and acquiring entities) for plaintiffs' attorney fees
and expenses in the litigation; and general releases of all the defendants.

On June 24, 1996, after notice to the class and a hearing on the fairness and
adequacy of notice and the terms of settlement, the court orally approved the
settlement.  The court signed the formal order on July 30, 1996.  No appeal was
filed within thirty days after the court entered the formal order and the
settlement became effective on August 30, 1996.  The Affiliated Purchaser made
the payments to investors in accordance with the settlement in early September
1996.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

       a)  Exhibits:

           Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
           report.

       b)  Reports on Form 8-K:

           None filed during the quarter ended September 30, 1996.



                                    SIGNATURES

 In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                             SHELTER PROPERTIES I LIMITED PARTNERSHIP

                             By: Shelter Realty I Corporation
                                 Corporate General Partner

                             By:/s/ William H. Jarrard, Jr.
                                William H. Jarrard, Jr.
                                President and Director


                             By:/s/ Ronald Uretta      
                                Ronald Uretta
                                Treasurer
                                (Principal Financial Officer
                                and Principal Accounting Officer)


                             Date:  October 30, 1996