<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Davidson
Diversified Real Estate II Limited Partnership's 1996 First Quarter 10-QSB and
is qualified in its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000750258
<NAME> DAVIDSON DIVERSIFIED REAL ESTATE II LIMITED PARTNERSHIP
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                             871
<SECURITIES>                                         0
<RECEIVABLES>                                       39
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                 2,379
<PP&E>                                          42,935
<DEPRECIATION>                                  17,935
<TOTAL-ASSETS>                                  27,830
<CURRENT-LIABILITIES>                              831
<BONDS>                                         26,883
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                       (413)
<TOTAL-LIABILITY-AND-EQUITY>                    27,830
<SALES>                                              0
<TOTAL-REVENUES>                                 2,356
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                 2,368
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 617
<INCOME-PRETAX>                                   (76)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                               (76)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      (76)
<EPS-PRIMARY>                                   (.061)
<EPS-DILUTED>                                        0