July 31, 1998

		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  June 30, 1998.  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  June 30, 1998 and 1997, total  revenues
increase 19.2% from $422,832 to $503,890  and  total  expenses  decreased 1.2%
from $316,487 to $312,578.  Equity in income of the real estate  joint venture
increased 24.2% from $21,764 to $27,035.   As a result,  net  income increased
70.4% from $128,109 to $218,347 for the three month period ended June 30, 1998,
as compared to the same period in 1997.  Rental revenue increased as a result
of higher unit rental rates.  Occupancy  levels  for the  Partnership's five
mini-storage  facilities  averaged  84.4%  for  the  three  month period ended
June 30, 1998 as compared to 85.5% for the same period in 1997. The Partnership
is  continuing its  marketing efforts to  attract and  keep new tenants in its
various  mini-storage  facilities.  Operating expenses decreased approximately
$12,400 (4.5%) primarily as a result of lower yellow pages  advertising costs,
repairs and maintenance and  salaries and  wage  expenses  partially offset by
higher real estate tax expenses.  General and administrative expenses increased
approximately  $8,500 (21.2%)  primarily  as a  result of  higher  incentive
management fees.  Incentive management fees, which are based on cash available
for distribution, increased as a result of the increase in net income.  Equity
in income from the real estate joint venture increased primarily as a result
of higher rental revenue.

For the six month  periods  ended  June 30, 1998, and 1997, total  revenues
increased 13.2% from $842,470 to $953,035 and total expenses decreased slightly
from $637,720 to $637,194. Equity in income of the real estate joint venture
increased 24.0% from $41,810 to $51,824.  As a result, net income increased
49.1% from $246,560 to $367,665 for the six month period ended June 30, 1998,
as compared to the same period in 1997.  Rental revenue increased as a result
of higher unit rental rates. Operating expenses decreased approximately $15,000
(2.8%) primarily as a result of decreases in yellow pages advertising costs,
legal and repairs and maintenance expenses partially offset by an increase in
property management fees.  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 $14,500 (13.9%) primarily as
a result of higher incentive management fees, which was discussed above. Equity
in income from the real estate joint venture increased as a result of higher
rental revenue and lower salaries and wage expenses.

The  City of Stockton acquired 6,089 square feet or 5.4% of the Stockton
property in 1997.  In April 1998 the Partnership received $65,000 as
compensation for the acquisition.  A gain on sale of land was recorded in the
amount of $46,974, and the cost of land was reduced by $18,026.  Based on
operations since the acquisition, neither cash flow from nor the value of
the property appears materially impaired.

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 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