April 30, 1997

		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  March 31, 1997.  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  March 31, 1997  and  1996, total
revenues  increased  2.5%  from  $409,415 to  $419,638  and  total  expenses
increased 2.4% from  $313,715 to $321,233.  Equity  in  income  of  the  real
estate joint venture decreased 10.3% from  $22,346 to $20,046.  As a result, 
net income increased  from  $118,046  to  $118,451  for  the  three month 
period ended  March 31, 1997,  as  compared  to  the  same  period in  1996.
Rental  revenue  increased  as a  result  of  higher  unit  rental  rates.
Occupancy  levels  for  the  Partnership's  five  mini-storage  facilities
averaged 83.7% for the  three month period  ended  March 31, 1997, and 85% 
for the same period in 1996.  The  Partnership is  continuing its marketing 
efforts to attract  and  keep  new  tenants  in  its  various  mini-storage 
facilities.  Operating  expenses  increased  approximately  $8,500  (3.4%) 
primarily as a  result of  higher  yellow pages avertising costs, legal and
professional  and  salaries  and  wages  expenses, partially  offset by lower
repair  and  maintenance expenses.  General  and  administrative  expenses
remained constant.  Income from the real estate  joint  venture  decreased
primarily as a result of a non-recurring termination payment to the facility
manager, partially offset by lower maintenance and repair expenses.

The  General  Partners will  continue  their  policy  of  funding  continuing
improvement and maintenance of Partnership  properties  with  cash  generated 
from operations.  The  Partnership's  resources  appear  to  be  adequate  to 
meet its needs.  The General Partners anticipate distributions to the 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