<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Krupp
Realty Fund III Financial Statements for the three months ended March 31, 1999
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                         637,597
<SECURITIES>                                         0
<RECEIVABLES>                                   36,382<F1>
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                               940,019
<PP&E>                                      32,464,918<F2>
<DEPRECIATION>                            (22,647,626)<F3>
<TOTAL-ASSETS>                              11,431,290
<CURRENT-LIABILITIES>                          583,962
<BONDS>                                     18,621,037<F4>
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   (7,773,709)<F5>
<OTHER-SE>                                           0
<TOTAL-LIABILITY-AND-EQUITY>                11,431,290
<SALES>                                              0
<TOTAL-REVENUES>                             1,905,176<F6>
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                             1,305,696<F7>
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             411,185
<INCOME-PRETAX>                                      0
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   188,295<F8>
<EPS-PRIMARY>                                        0<F8>
<EPS-DILUTED>                                        0<F8>
<FN>
<F1>Includes all receivables grouped in "Prepaid Expenses and Other Assets"
on the Balance Sheet.
<F2>Includes apartment complexes of $31,945,334 and deferred expenses of $519,584.
<F3>Includes depreciation of $22,377,293 and amortization of deferred expenses
of $270,333.
<F4>Represents mortgage note payable.
<F5>Represents total deficit of the General Partners ($331,685) and the
Limited Partners ($7,442,024).
<F6>Includes all revenue of the Partnership.
<F7>Includes operating expenses of $755,088, real estate taxes of $139,111
and depreciation and amortization of $411,497.
<F8>Net Income allocated $1,883 to General Partners and $186,412 to Limited
Partners.  Net Income of $7.16 per unit on 25,000 units outstanding.
</FN>