April 30, 1996

		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, 1996.  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, 1996  and  1995, total
revenues  decreased  2.7%  from  $420,621 to  $409,415  and  total  expenses
increased  from  $304,569 to  $313,715.  Equity  in  income  of  the  real
estate joint venture decreased 14.4% from  $26,090 to $22,346.  As a result, 
net income decreased 17%  from  $142,142  to  $118,046  for the  three month 
period ended  March 31, 1996,  as  compared  to  the  same  period in  1995.
Occupancy  levels  for  the  Partnership's  five  mini-storage  facilities 
averaged 85% for the  three  month  period  ended  March 31, 1996, and 84.1% 
for the same period in 1995.  The  Partnership is  continuing its marketing 
efforts to attract  and  keep  new  tenants  in  its  various  mini-storage 
facilities.  Operating  expenses  increased  approximately  $7,000  (2.9%) 
primarily as a  result of  higher  repair and  maintenance expenses.  General 
and administrative expenses increased approximately $2,200  (3.5%)  primarily 
as a  result  of  higher  professional  fees  and  computer  upgrade  and
and  consulting  expenses,  partially offset  by lower  incentive  management
fees.   The  decrease in  income  from  the  real estate joint venture is the
result  of  lower  occupancy  and  unit  rental  rates.

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