FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) OF
                     THE SECURITIES EXCHANGE ACT OF 1934
                       QUARTERLY OR TRANSITIONAL REPORT


                   U.S. Securities and Exchange Commission
                           Washington, D.C.  20549


                                 FORM 10-QSB
(Mark One)
[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934


                For the quarterly period ended March 31, 1998


[  ]  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 0-10273


                     CONSOLIDATED CAPITAL PROPERTIES III
      (Exact name of small business issuer as specified in its charter)

       California                                               94-2653686
(State or other jurisdiction of                               (IRS Employer
incorporation or organization)                              Identification No.)

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

                                 (864) 239-1000
                           Issuer's telephone number


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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)
                      CONSOLIDATED CAPITAL PROPERTIES III

                           CONSOLIDATED BALANCE SHEET
                                  (Unaudited)

                                 March 31, 1998
                        (in thousands, except unit data)


Assets
  Cash and cash equivalents                                         $  2,202
  Receivables and deposits                                               250
  Restricted escrows                                                      94
  Other assets                                                           296
  Investment properties:
     Land                                            $  1,552
     Buildings and related personal property           12,740
                                                       14,292
     Less accumulated depreciation                     (9,735)         4,557

                                                                     $ 7,399

Liabilities and Partners' Capital (Deficit)

Liabilities
  Accounts payable                                                   $    34
  Tenant security deposits payable                                       127
  Accrued property taxes                                                  56
  Other liabilities                                                      136
  Mortgage notes payable                                               4,200

Partners' Capital (Deficit)
  General partners'                                  $ (1,916)
  Limited partners' (158,582 units
     issued and outstanding)                            4,762          2,846

                                                                     $ 7,399

          See Accompanying Notes to Consolidated Financial Statements


b)
                      CONSOLIDATED CAPITAL PROPERTIES III

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        (in thousands, except unit data)

                                

                                                        Three Months Ended
                                                             March 31,
                                                          1998        1997
Revenues:
  Rental income                                      $    908      $    826
  Other income                                             54            74
     Total revenues                                       962           900

Expenses:
  Operating                                               441           444
  General and administrative                               62            65
  Depreciation                                            111           101
  Interest                                                 85            84
  Property taxes                                           56            54
     Total expenses                                       755           748

Net income                                           $    207      $    152


Net income allocated to general partners (4%)        $      8      $      6
Net income allocated to limited partners (96%)            199           146
                                                     $    207      $    152

Net income per limited
  partnership unit                                   $   1.25      $    .92

Limited partnership units outstanding                 158,582       158,636

          See Accompanying Notes to Consolidated Financial Statements

c)
                        CONSOLIDATED CAPITAL PROPERTIES III

          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                    (Unaudited)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>
                                      Limited
                                    Partnership    General       Limited
                                       Units       Partners'     Partners'     Total
<S>                                 <C>          <C>            <C>          <C>
Original capital contributions       158,945      $     1        $79,473      $79,474

Partners' (deficit) capital at
 December 31, 1997                   158,582      $(1,924)       $ 4,563      $ 2,639

Net income for the three months
 ended March 31, 1998                     --            8            199          207

Partners' (deficit) capital
 at March 31, 1998                   158,582      $(1,916)       $ 4,762      $ 2,846
<FN>
          See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>


d)
                      CONSOLIDATED CAPITAL PROPERTIES III

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                                Three Months Ended
                                                                     March 31,
                                                               1998            1997
<S>                                                         <C>             <C>
Cash flows from operating activities:
  Net income                                                 $  207          $  152
    Adjustments to reconcile net income to
      net cash provided by operating activities:
      Depreciation                                              111             101
      Amortization of lease commissions and loan costs           14              11
      Change in accounts:
        Receivables and deposits                                (51)              3
        Other assets                                              5               9
        Accounts payable                                       (105)            (82)
        Tenant security deposits payable                          6              (5)
        Accrued property taxes                                   56              54
        Other liabilities                                        (8)            (19)

            Net cash provided by operating activities           235             224

Cash flows from investing activities:
  Property improvements and replacements                        (83)            (67)
  Net receipts from (deposits to) restricted escrows             12             (20)

         Net cash used in investing activities                  (71)            (87)

Cash flows from financing activities:
  Loan costs paid                                                --             (20)

         Net cash used in financing activities                   --             (20)

Net increase in cash and cash equivalents                       164             117

Cash and cash equivalents at beginning of period              2,038           3,603

Cash and cash equivalents at end of period                   $2,202          $3,720

Supplemental disclosure of cash flow information:
  Cash paid for interest                                     $   77          $   77
<FN> 
          See Accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>


e)
                     CONSOLIDATED CAPITAL PROPERTIES III

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements of Consolidated
Capital Properties III (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 Item 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 ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ended March 31, 1998, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 1998.  For further information,
refer to the consolidated financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-KSB for the fiscal year ended
December 31, 1997.

Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.

Consolidation

The consolidated financial statements of the Partnership include its 99% limited
partnership interest in ConCap Village Green Associates, Ltd.  The Partnership
may remove the General Partner of this lower tier, therefore, the partnership is
controlled and consolidated by the Partnership. All significant interpartnership
balances have been eliminated.  Minority interest is immaterial and not shown
separately in the financial statements.

NOTE B - TRANSACTIONS WITH AFFILIATED PARTNERS

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all partnership activities.
The General Partner is wholly-owned by Insignia Properties Trust ("IPT"), which
is an affiliate of Insignia Financial Group, Inc. ("Insignia").  The Limited
Partnership Agreement ("Partnership Agreement") provides for payments to
affiliates of the General Partner for property management services based on a
percentage of revenue; for a partnership management fee equal to 9% of the total
distributions made to limited partners from cash flow from operations; and for
reimbursements of certain expenses incurred by affiliates of the General Partner
on behalf of the Partnership. The following payments were paid to affiliates of
the General Partner during each of the three months ended March 31, 1998 and
1997 (in thousands):


                                                            1998       1997
Property management fees (included in
  operating expenses)                                      $ 47        $ 44
Reimbursement for services of affiliates including
  approximately $2,000 of construction service
  reimbursements in both 1998 and 1997 (included in
  operating and general and administrative
  expenses)                                                  38          45

Additionally, the Partnership paid approximately $3,000 and $1,000 during the
three months ended March 31, 1998 and 1997, respectively, to an affiliate of the
General Partner for lease commissions at the Partnership's commercial property.
These lease commissions are included in other assets and are amortized over the
terms of the respective leases. The Partnership also paid approximately $5,000
during the three months ended March 31, 1997 to affiliates of Insignia for
reimbursements of costs related to the loan refinancings in November of 1996.
These costs were capitalized as loan costs and are being amortized over the 
terms of the respective loans.

For the period January 1, 1997 to August 31, 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the General
Partner with an insurer unaffiliated with the General Partner.  An affiliate of
the 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 master policy.  The agent assumed the financial obligations
to the affiliate of the General Partner which received payment on these
obligations from the agent.  The amount of the Partnership's insurance premiums
that accrued to the benefit of the affiliate of the General Partner by virtue of
the agent's obligations was not significant.

On March 17, 1998, Insignia entered into an agreement to merge its national
residential property management operations, and its controlling interest in IPT,
with Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust.  The closing, which is anticipated to happen in
the third quarter of 1998, is subject to customary conditions, including
government approvals and the approval of Insignia's shareholders.  If the
closing occurs, AIMCO will then control the General Partner of the Partnership.


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

The Partnership's investment properties consist of three apartment complexes and
one commercial property.  The following table sets forth the average occupancy
of the properties for the three months ended March 31, 1998 and 1997:

                                                 Average Occupancy
                                                1998            1997

Professional Plaza Office Building              95%             95%
 Salt Lake City, UT

Ventura Landing Apartments                      95%             96%
 Orlando, FL

Village Green Apartments                        99%             92%
 Altamante Springs, FL

West Chase Apartments                           87%             86%
 Lexington, KY

The low occupancy at West Chase Apartments is a result of competition from
several new apartment complexes completed in the Lexington area in 1996 and
1997.  The increase in occupancy at Village Green Apartments is due to several
exterior and interior building improvements in 1997, improving the appearance of
the entire property.

The Partnership realized net income of $207,000 for the three months ended March
31, 1998, compared to net income of $152,000 for the three months ended March
31, 1997. The increase in net income is primarily due to increased rental
revenue due to rental rate increases at all of the properties except West Chase,
as well as an occupancy increase at Village Green.  Total expenses remained
stable for the three months ended March 31, 1998 compared to the corresponding
period in 1997.  Included in operating expense is approximately $5,000 and
$9,000 of major repairs and maintenance for the three months ended March 31,
1998 and 1997, respectively. The expenses for 1998 are comprised primarily of
exterior building repairs and landscaping.  The 1997 expenses are comprised
primarily of exterior building repairs.

As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses.  As part of
this plan, the 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
General Partner will be able to sustain such a plan.

At March 31, 1998, the Partnership held cash and cash equivalents of $2,202,000,
compared to approximately $3,720,000 at March 31, 1997.  The net increase in
cash and cash equivalents for the three months ended March 31, 1998 is $164,000
compared to a net increase of $117,000 for the three months ended March 31,
1997.  Net cash provided by operating activities increased primarily due to
increased rental revenue, as discussed above.  Partially offsetting this
increase to cash was an increase in receivables and deposits for the first
quarter of 1998 compared to the first quarter of 1997.  Net cash used in
investing activities decreased due to increased receipts from restricted
escrows. Net cash used in financing activities decreased due to loan costs
incurred in 1997 related to the 1996 debt refinancing.

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 various properties 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 $4,200,000 matures on November 1, 2003 with balloon
payments due at maturity, at which time the properties will either be refinanced
or sold.  Future cash distributions will depend on the levels of net cash
generated from operations, capital expenditure requirements, property sales and
the availability of cash reserves.

Year 2000

The Partnership is dependent upon the General Partner and Insignia for
management and administrative services.  Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue").  The project is estimated to be completed
not later than December 31, 1998, which is prior to any anticipated impact on
its operating systems.  The General Partner believes that with modifications to
existing software and conversions to new software, the Year 2000 Issue will not
pose significant operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance or achievements expressed or implied by such forward-
looking statements.  Such forward-looking statements speak only as of the date
of this quarterly report.  The Partnership expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Partnership's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.


                         PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo.  The plaintiffs named as defendants, among others,
the Partnership, the General Partner and several of their affiliated
partnerships and corporate entities. The complaint purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging the acquisition by Insignia and its affiliates of
interests in certain general partner entities, past tender offers by Insignia
affiliates to acquire limited partnership units, the management of partnerships
by Insignia affiliates, as well as a recently announced agreement between
Insignia and Apartment Investment and Management Company.  The complaint seeks
monetary damages and equitable relief, including judicial dissolution of the
Partnership.  The General Partner was only recently served with the complaint,
which it believes to be without merit, and intends to vigorously defend the
action.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

   (a)  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 March 31, 1998.


                                   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.



                               CONSOLIDATED CAPITAL PROPERTIES III

                               By:       CONCAP EQUITIES, INC.
                                         Its General Partner


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


                               By:       /s/ Ronald Uretta
                                         Ronald Uretta
                                         Vice President/Treasurer



                               Date:     April 30, 1998