<ARTICLE> 5 <LEGEND> The schedule contains summary financial information extracted from the balance sheet and statement of income and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000832091 <NAME> KRUPP INSURED PLUS III LIMITED PARTNERSHIP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> MAR-31-1997 <CASH> 5,581,840 <SECURITIES> 171,222,569<F1> <RECEIVABLES> 1,167,541 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 5,929,224<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 183,901,174 <CURRENT-LIABILITIES> 3,493 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 184,036,309<F3> <OTHER-SE> (138,628)<F4> <TOTAL-LIABILITY-AND-EQUITY> 183,901,174 <SALES> 0 <TOTAL-REVENUES> 4,359,953<F5> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 770,591<F6> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 3,589,362 <INCOME-TAX> 0 <INCOME-CONTINUING> 3,589,362 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,589,362 <EPS-PRIMARY> 0<F7> <EPS-DILUTED> 0<F7> <FN> <F1>Includes Participating Insured Mortgages ("PIMS") of $138,995,348 and Mortgage-Backed Securities ("MBS") of $32,227,221. <F2>Includes prepaid acquisition fees and expenses of $11,476,258 net of accumulated amortization of $6,991,247 and prepaid participation servicing fees of $3,803,248 net of accumulated amortization of $2,359,035. <F3>Represents total equity of General Partners and Limited Partners. General Partners deficit of ($138,936) and Limited Partners equity of $184,175,245. <F4>Unrealized gain on MBS. <F5>Represents interest income on investments in mortgages and cash. <F6>Includes $359,861 of amortization of prepaid fees and expenses. <F7>Net income allocated $107,681 to the General Partners and $3,481,681 to the Limited Partners. Average net income per Limited Partner interest is $.27 on 12,770,261 Limited Partner interests outstanding. </FN>