<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Shelter Properties III Ltd. 1996 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. </LEGEND> <CIK> 0000353282 <NAME> SHELTER PROPERTIES III LTD. <MULTIPLIER> 1 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> MAR-31-1996 <CASH> 1,303,322 <SECURITIES> 0 <RECEIVABLES> 22,510 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0<F1> <PP&E> 25,033,649 <DEPRECIATION> 12,587,655 <TOTAL-ASSETS> 15,165,546 <CURRENT-LIABILITIES> 0<F1> <BONDS> 8,555,058 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 5,944,708 <TOTAL-LIABILITY-AND-EQUITY> 15,165,946 <SALES> 0 <TOTAL-REVENUES> 1,288,647 <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 1,153,326 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 196,146 <INCOME-PRETAX> 0 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 135,321 <EPS-PRIMARY> 2.44 <EPS-DILUTED> 0 <FN> <F1>The Partnership has an unclassified balance sheet. </FN>