April 28, 2000

		QUARTERLY REPORT TO THE LIMITED PARTNERS
			OF DSI REALTY INCOME FUND VIII


DEAR LIMITED PARTNERS:

We  are  pleased  to  enclose  the  Partnership's  unaudited  financial
statements  for  the  period  ended  March 31, 2000.  The  following  is
Management's  discussion  and  analysis  of  the  Partnership's  financial
condition  and  results  of  its  operations.

For  the  three  month  periods  ended  March 31, 2000  and  1999, total
revenues increased 5.1% from $488,691 to $513,381 and total expenses
decreased 1.0% from $351,201 to $347,648.  Equity in income of the real
estate joint venture increased 25.5% from $25,649 to $32,189.  As a result,
net income increased from $163,139 to $197,922 for the three-month period
ended March 31, 2000, as compared to the same period in 1999. Rental revenue
increased as a result of higher occupancy and unit rental rates.  Occupancy
levels for the Partnership's five mini-storage facilities averaged 84.0% for
the three month period ended March 31, 2000 and 81.4% for the same period
in 1999.  The Partnership is continuing its marketing efforts to attract
and keep new tenants in its various mini-storage facilities.  Operating
expenses decreased approximately $8,200 (2.9%) primarily as a result of
lower maintenance and repair expense, partially offset by an increase
salaries and wages expense.  General and administrative expenses increased
approximately $4,700 (7.0%) primarily as a result of higher incentive manage-
ment fees.  Incentive management fees, which are based on cash available
for distribution, increased as a result of the increase in net income.
Equity in income of real estate joint venture increased as a result of
lower operating expenses, primarily maintenance and repair expense, at
that facility.

The  General  Partners will  continue  their  policy  of  funding  continuing
improvement and maintenance of Partnership  properties  with  cash  generated
from operations.  The  Partnership's  resources  appear  to  be  adequate  to
meet its needs.  The General Partners anticipate distributions to the Limited
Partners  to  remain  at  the  current  level  for  the  foreseeable  future.

We are not enclosing a copy of the Partnership Form 10-Q as filed with the
Securities and Exchange Commission since all the information set forth
therein is contained either in this letter or in the attached financial
statements. However, if you wish to receive a copy of said report, please
send a written request to DSI Realty Income Fund VIII, P.O. Box 357, Long
Beach, California 90801.

                              Very truly yours,

                              DSI REALTY INCOME FUND VIII
                              By: DSI Properties, Inc., as
                              General Partner



                              By  /s/ Robert J. Conway
                                  ____________________________
                                 ROBERT J. CONWAY, President