<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> 6-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> JUN-30-1997 <CASH> 4,591,029 <SECURITIES> 163,693,824<F1> <RECEIVABLES> 1,114,034 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 5,333,684<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 174,732,571 <CURRENT-LIABILITIES> 11,043 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 174,229,530<F3> <OTHER-SE> 491,998<F4> <TOTAL-LIABILITY-AND-EQUITY> 174,732,571 <SALES> 0 <TOTAL-REVENUES> 7,775,866<F5> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 1,763,529<F6> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 6,012,337 <INCOME-TAX> 0 <INCOME-CONTINUING> 6,012,337 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,012,337 <EPS-PRIMARY> 0<F7> <EPS-DILUTED> 0<F7> <FN> <F1>Includes Participating Insurd Mortgages ("PIMs") of $131,257,560 and Mortgage-Backed Securities ("MBS") of $32,436,264. <F2>Includes prepaid acquisition fees and expenses of $10,861,154 net of accumulated amortization of $6,835,673 and prepaid participation servicing fees of $3,290,157 net of accumulated amortization of $1,981,954. <F3>Represents total equity of General Partners and Limited Partners. General Partners deficit of ($164,347) and Limited Partners equity of $174,393,877. <F4>Unrealized gain on MBS. <F5>Represents interest income on investments in mortgages and cash. <F6>Includes $955,401 of amortization of prepaid fees and expenses. <F7>Net income allocated $180,371 to the General Partners and $5,831,996 to the Limited Partners. Average net income per Limited Partner interest is $.46 on 12,770,261 Limited Partner interests outstanding. </FN>