<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from 
Shelter Properties III Limited Partnership 1998 Second Quarter 10-QSB
and is qualified in its entirety by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000353282
<NAME> SHELTER PROPERTIES III LIMITED PARTNERSHIP
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                    6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998   
<CASH>                                           1,659
<SECURITIES>                                         0
<RECEIVABLES>                                      398
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                                     0<F1>
<PP&E>                                          26,035
<DEPRECIATION>                                  14,677   
<TOTAL-ASSETS>                                  11,358   
<CURRENT-LIABILITIES>                                0<F1>
<BONDS>                                          8,188     
<PREFERRED-MANDATORY>                                0     
<PREFERRED>                                          0  
<COMMON>                                             0
<OTHER-SE>                                       5,655    
<TOTAL-LIABILITY-AND-EQUITY>                    14,547    
<SALES>                                              0
<TOTAL-REVENUES>                                 2,701    
<CGS>                                                0
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                 2,309    
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 375    
<INCOME-PRETAX>                                      0
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       392     
<EPS-PRIMARY>                                     7.05<F2>
<EPS-DILUTED>                                        0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>