October 31, 2000

		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, 2000.  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, 2000  and  1999, total
revenues increased 12.5% from $504,635 to $567,444 and total expenses in-
creased 16.5% from $321,936 to $374,986.  Equity in income of the real
estate joint venture decreased 8.9% from $32,377 to $29,487.  As a result,
net income increased 3.2% from $215,076 to $221,945 for the three-month
period ended September 30, 2000, as compared to the same period in 1999.
Rental revenue increased as a result of higher occupancy and unit rental
rates.  Occupancy levels for the Partnership's five mini-storage facilities
facilities averaged 92.0% for the three-month period ended September 30,
2000 as compared to 84.7% for the same period in 1999.  The Partnership
is continuing its marketing efforts to attract and keep new tenants in its
various mini-storage facilities.  Operating expenses increased approximately
$55,600 (20.1%) primarily as a result of higher property management fees,
salary and wages and security and alarm services expenses.  General and
administrative expenses decreased approximately $2,600 (5.8%) primarily
as a result of relatively insignificant fluctuations in various expense
accounts.  Equity in income from the real estate joint venture decreased
as a result of higher operating expenses at the facility which the joint
venture owns.

For the nine-month periods ended September 30, 2000, and 1999, total
revenues increased 9.4% from $1,473,875 to $1,612,500 and total expenses
increased 7.2% from $999,556 to $1,071,669.  Equity in income of the real
estate joint venture increased slightly from $87,602 to $87,868.  As a
result, net income increased 11.9% from $561,921 to $628,699 for the nine-
month period ended September 30, 2000, as compared to the same period in
1999.  Rental revenue increased as a result of higher occupancy and unit
rental rates.  Operating expenses increased approximately $62,400 (7.4%)
primarily as a result of increases in repairs and maintenance, property
management fees, salaries and wages and security and alarm service expenses.
Property management fees, which are based on rental income, increased
as a result of the increase in rental revenue.  General and administrative
expenses increased approximately $9,700 (6.1%) primarily as a result of
higher incentive management fees and legal and professional expenses.
Equity in income from the real estate joint venture remained relatively
constant.

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