<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-31-1996 <PERIOD-END> JUN-30-1996 <CASH> 4,511,531 <SECURITIES> 185,228,491<F1> <RECEIVABLES> 1,284,605 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 7,465,566<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 198,490,193 <CURRENT-LIABILITIES> 9,019 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 198,317,003<F3> <OTHER-SE> 164,171 <TOTAL-LIABILITY-AND-EQUITY> 198,490,193 <SALES> 0 <TOTAL-REVENUES> 7,323,114<F4> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 1,616,661<F5> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 5,706,453 <INCOME-TAX> 0 <INCOME-CONTINUING> 5,706,453 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,706,453 <EPS-PRIMARY> 0<F6> <EPS-DILUTED> 0<F6> <FN> <F1>Includes the following investments: Participating Insured Mortgages ("PIMs") $151,043,449 & Mortgage-Backed Securities ("MBS") $34,185,042 <F2>Includes the following prepaid acquisition fees & expenses of $5,649,532 net of accumulated amortization of $6,681,531 and prepaid participating servicing of $1,816,034 net of accumulated amortization of $2,270,498 <F3>Represents total equity of General Partners & Limited Partners of $(131,618) and $198,448,621 <F4>Represents interest income on investments in mortgages & cash <F5>Includes $776,817 of amortization related to prepaid fees & expenses <F6>Net income allocated $171,194 to the General Partners & $5,535,259 to the Limited Partners. Average net income per unit of Limited Partners interest is $.43 on 12,770,261 units outstanding. </FN>