<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Sheleter
Properties III Ltd. Partnership 1996 2nd Quarter 10-QSB and is qualified in its
entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000353282
<NAME> SHELTER PROPERTIES III LTD PARTNERSHIP
<MULTIPLIER> 1
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                       1,238,352
<SECURITIES>                                         0
<RECEIVABLES>                                   26,974
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0<F1>
<PP&E>                                      25,129,362
<DEPRECIATION>                              12,815,066
<TOTAL-ASSETS>                              15,060,472
<CURRENT-LIABILITIES>                                0<F1>
<BONDS>                                      8,517,052
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                   5,794,338
<TOTAL-LIABILITY-AND-EQUITY>                15,060,472
<SALES>                                              0
<TOTAL-REVENUES>                             2,649,320
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                             2,414,375
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             390,053
<INCOME-PRETAX>                                      0
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   234,945
<EPS-PRIMARY>                                     4.23
<EPS-DILUTED>                                        0
<FN>
<F1>The Partnership has an unclassified balance sheet.
</FN>