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

(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, 1997


[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

                For the transition period.........to.........


                        Commission file number 0-10412
                        NATIONAL PROPERTY INVESTORS 4
      (Exact name of small business issuer as specified in its charter)



         California                                            13-3031722
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                             Identification No.)

                         One Insignia Financial Plaza
                       Greenville, South Carolina 29602
                   (Address of principal executive offices)

                                (864) 239-1000
                            Issuer's phone 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)                      NATIONAL PROPERTY INVESTORS 4

                                BALANCE SHEET
                                 (Unaudited)
                        (in thousands, except unit data)

                                  March 31, 1997
<TABLE>
<CAPTION>

<S>                                                   <C>               <C>    
Assets
  Cash and cash equivalents                                              $   2,124
  Receivable and deposits                                                    1,080
  Other assets                                                                 613
  Investment property:
    Land                                               $    1,980
    Building and related personal property                 23,818
                                                           25,798
Accumulated depreciation                                  (17,260)           8,538

                                                                         $  12,355
Liabilities and Partners' Deficit

  Accounts payable                                                       $      22
  Tenants' security deposits payable                                           410
  Accrued property taxes                                                        27
  Other liabilities                                                            173
  Notes payable                                                             19,300

Partners' Deficit:
  Limited partners' (60,005 units issued and
    outstanding)                                       $   (7,254)
  General partner's                                          (323)         (7,577)

                                                                         $ 12,355
<FN>
                      See Notes to Financial Statements
</TABLE>

b)                          NATIONAL PROPERTY INVESTORS 4

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


                                                   Three Months Ended
                                                          Ended
                                                       March 31,
                                                     1997        1996
Revenues:
  Rental income                                   $  1,513    $  1,507
  Other income                                          70          56
     Total revenues                                  1,583       1,563
Expenses:
  Operating                                            602         758
  Interest                                             372         380
  Depreciation                                         234         231
  General and administrative                           129          53
     Total expenses                                  1,337       1,422

Net income                                        $    246    $    141

Net income allocated to general partner (1%)      $      2    $      1
Net income allocated to limited partner (99%)          244         140

Net income                                        $    246    $    141

Net income per limited partnership unit           $   4.07    $   2.33

Distribution per limited partnership unit         $  47.90    $     --

                        See Notes to Financial Statements

c)                          NATIONAL PROPERTY INVESTORS 4

                      STATEMENT OF CHANGES IN PARTNERS' DEFICIT
                                     (Unaudited)
                           (in thousands, except unit data)
<TABLE>
<CAPTION>
                                   Limited      General        Limited
                                 Partnership   Partner's      Partners'        Total
                                    Units       Deficit        Deficit        Deficit
<S>                               <C>        <C>           <C>            <C>
Original capital contributions     60,005     $      1      $  30,003      $  30,004

Partners' deficit at
 December 31, 1996                 60,005     $   (315)     $  (4,624)     $  (4,939)

Net income for the three
 months ended March 31, 1997           --            2            244            246

Distribution to partners               --          (10)        (2,874)        (2,884)

Partners' deficit at
 March 31, 1997                    60,005     $   (323)     $  (7,254)     $ ( 7,577)
<FN>
                       See Notes to Financial Statements
</TABLE>

d)                         NATIONAL PROPERTY INVESTORS 4

                              STATEMENTS OF CASH FLOWS
                                    (Unaudited)
                                   (in thousands)
<TABLE>
<CAPTION>
                                                             Three Months Ended
                                                                   March 31,
                                                             1997            1996
<S>                                                      <C>           <C>
Cash flows from operating activities:
  Net income                                              $   246       $    141
  Adjustments to reconcile net income to
  cash provided by operating activities:
   Depreciation                                               234            231
   Amortization of loan costs                                  18             12
   Change in account:
      Receivables and deposits                                (77)          (185)
      Other assets                                             99            138
      Accounts payable                                        (66)           104
      Tenant security deposit payable                           1             26
      Accrued property taxes                                   27             --
      Other liabilities                                        (6)           340
          Net cash provided by operating activities           476            807

Cash flows from investing activities:
   Deposits to restricted escrows                             (47)            --
   Property improvements and replacements                     (76)           (23)

          Net cash used in investing activities              (123)           (23)

Cash flows from financing activities:
   Repayment of notes payable                                  --            (96)
   Loan costs                                                 (19)            --
   Distribution to partners                                (2,884)            --
          Net cash used in financing activities            (2,903)           (96)

Net (decrease) increase in cash and cash equivalents       (2,550)           688

Cash and cash equivalents at beginning of period            4,674          2,326

Cash and cash equivalents at end of period               $  2,124       $  3,014

Supplemental information:
  Cash paid for interest                                 $    354       $    368
<FN>
                       See Notes to Financial Statements
</TABLE>

                         NATIONAL PROPERTY INVESTORS 4

                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements 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 NPI Equity Investments, Inc. ("NPI Equity" or the "Managing
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, 1997, are not necessarily
indicative of the results that may be expected for the fiscal year ending
December 31, 1997.  For further information, refer to the financial statements
and footnotes thereto included in the annual report of National Property
Investors 4 (the "Partnership") on Form 10-KSB for the year ended December 31,
1996.

Certain reclassifications have been made to the 1996 information to conform to
the 1997 presentation.

NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Managing 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 as reimbursement of certain expenses incurred by
affiliates on behalf of the Partnership.

Pursuant to a series of transactions which closed during 1996, affiliates of
Insignia Financial Group, Inc. ("Insignia") acquired all of the issued and
outstanding shares of NPI Equity and National Property Investors, Inc. ("NPI").
In connection with these transactions, affiliates of Insignia appointed new
officers and directors of NPI Equity and NPI.

The following transactions with affiliates of Insignia, NPI, and affiliates of
NPI were charged to expense during the three month periods ended March 31, 1997
and 1996 (dollar amounts in thousands):


                                                     For the Three Months Ended
                                                                March 31,
                                                         1997             1996
Property management fees (included in operating
  expenses)                                              $ 78             $ 77
Reimbursement for services of affiliates, including
   approximately $34,000 of construction services
   reimbursements in 1997 (included in investment
   property, general and administrative expenses
   and operating expenses)
                                                           56               49

For services relating to the administration of the Partnership and operation of
Partnership property, the Managing General Partner is entitled to receive
payment for non-accountable expenses up to a maximum of $100,000 per year, based
upon the number of Partnership units sold, subject to certain limitations.  The
Managing General Partner is entitled to receive $100,000 in 1997.  This fee was
paid in January 1997.

From January 19, 1996 through March 31, 1997, the Partnership insured its
property under a master policy through an agency and insurer unaffiliated with
the Managing General Partner.  An affiliate of the Managing 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 Managing General Partner who received payments on these
obligations from the agent.  The amount of the Partnership's insurance premiums
accruing to the benefit of the affiliate of the Managing General Partner by
virtue of the agent's obligations is not significant.

NOTE C - DISTRIBUTION TO PARTNERS

In January 1997, the Partnership distributed $2,874,000 ($47.90 per limited
partnership unit) to the limited partners and $10,000 to the general partner
from the proceeds from the refinancing of the Village of Pennbrook and from
operations.


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

The Partnership's investment property consists of one apartment complex, the
Village of Pennbrook Apartments, located in Pennsylvania.  The average occupancy
for the three month periods ended March 31, 1997 and 1996, was 93% and 92%
respectively. The rental rates and occupancy of the Village of Pennbrook are
above the current market averages.

The Partnership's net income for the three months ended March 31, 1997, was
approximately $246,000.  For the corresponding period in 1996, the Partnership
reported net income of approximately $141,000. The increase in net income is
primarily due to an increase in other income and a decrease in operating
expenses.  The increase in other income is primarily due to an increase in
interest income and tenant charges such as late fees and pet fees.  The decrease
in operating expenses is primarily due to a decrease in utilities and snow
removal as a result of less severe winter weather in 1997 versus 1996 and due to
expenses in 1996 for the repair of heaters.  These reductions in expenses were
partially offset by an increase in general and administrative expenses. This
increase is due to a $100,000 reimbursement that was paid to the Managing
General Partner in accordance with the partnership agreement at the time of the
distribution to partners as discussed in "Item 1. Note B - Transactions with
Affiliated Parties".  For the three month period ended March 31, 1997, the
amount expended for major repairs and maintenance, included in operating expense
is not significant.  For the three month period ended March 31, 1996, the amount
expended for major repairs and maintenance was approximately $46,000 used
primarily for the repairs of heaters.

As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of its investment property 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 Managing 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 conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

At March 31, 1997, the Partnership had unrestricted cash of approximately
$2,124,000 as compared to approximately $3,014,000 at March 31, 1996.  Net cash
provided by operating activities decreased due to the timing of payments of
other liabilities. Net cash used in investing activities increased due to
deposits made into restricted escrows, which were established in the fourth
quarter of 1996, and an increase in property improvements. Net cash used in
financing activities increased due to a distribution of approximately $2,884,000
made to the partners as discussed in "Item 1. Note C - Distribution to
Partners".

The Managing General Partner has extended to the Partnership a $300,000 line of
credit. At the present time, the Partnership has no outstanding amounts due
under this line of credit. Based on present plans, the Managing General Partner
does not anticipate the need to borrow in the near future.  Other than cash and
cash equivalents, the line of credit is the Partnership's only unused source of
liquidity.

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 $19,300,000 consists of interest only payments of approximately
$118,000, at a stated interest rate of 7.33%.  The mortgage matures on November
1, 2003, with the principal balance due at the maturity date.  In January 1997,
the Partnership distributed $2,874,000 ($47.90 per limited partnership unit) to
the limited partners and $10,000 to the general partner from the proceeds from
the refinancing of the Village of Pennbrook and from operations.  No cash
distributions were paid in 1996.  Future cash distributions will depend on the
levels of cash generated from operations, a property sale, a property
refinancing and the availability of cash reserves.


                             PART II - OTHER INFORMATION


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, 1997.


                                      SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                           NATIONAL PROPERTY INVESTORS 4


                           By:  NPI EQUITY INVESTMENTS, INC.
                                Managing General Partner

                                /s/William H. Jarrard, Jr.
                                William H. Jarrard, JR.
                                President and Director


                                /s/Ronald Uretta
                                Ronald Uretta
                                Vice President and Treasurer

                           Date: May 8, 1997