<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Krupp
Realty Fund III financial Statement for the year ended December 31, 1996
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                         763,487
<SECURITIES>                                         0
<RECEIVABLES>                                   44,687
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                               558,403
<PP&E>                                      30,306,454<F1>
<DEPRECIATION>                              18,448,721<F2>
<TOTAL-ASSETS>                              13,224,310
<CURRENT-LIABILITIES>                          746,878
<BONDS>                                     19,491,853<F3>
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   (7,014,421)<F4>
<OTHER-SE>                                           0
<TOTAL-LIABILITY-AND-EQUITY>                13,224,310
<SALES>                                      6,628,658
<TOTAL-REVENUES>                             6,628,658
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                             5,341,036<F5>
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                           1,733,982
<INCOME-PRETAX>                              (446,360)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          (446,360)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (446,360)
<EPS-PRIMARY>                                        0<F6>
<EPS-DILUTED>                                        0<F6>
<FN>
<F6>Net loss allocated ($22,318) to general partners and ($424,042) to limited
partners for the year ended.  Average net loss ($16.96) per unit for 25,000
units outstanding.
<F5>Includes operating expenses of $2,969,190, real estate taxes of $504,867 and
depreciation/amortization of $1,866,979.
<F4>Represents total equity of general partners ($324,092) and limited partners
($6,690,329).
<F3>Represents mortgage note payable.
<F2>Includes depreciation of $18,281,640 and amortization of deferred
 expenses of $167,081.
<F1>Includes apartment complexes of $29,786,870 and deferred expenses of
 $519,584.
</FN>