<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> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> SEP-30-1996 <CASH> 4,818,146 <SECURITIES> 172,862,139<F1> <RECEIVABLES> 1,182,333 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 6,648,947<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 185,511,565 <CURRENT-LIABILITIES> 13,841 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 185,464,888<F3> <OTHER-SE> 32,836 <TOTAL-LIABILITY-AND-EQUITY> 185,511,565 <SALES> 0 <TOTAL-REVENUES> 12,097,429<F4> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 2,850,040<F5> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 9,247,389 <INCOME-TAX> 0 <INCOME-CONTINUING> 9,247,389 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 9,247,389 <EPS-PRIMARY> 0<F6> <EPS-DILUTED> 0<F6> <FN> <F1>Includes the following investments: Participating Insured Mortgages ("PIMs") $139,580,393 & Mortgage-Backed Securities ("MBS") $33,281,746 <F2>Includes the following prepaid qcquisition fees & expenses of $5,032,648 net of accumulated amortization of $6,443,610 and prepaid participating servicing of $1,616,299 net of accumulated amortization of $2,186,949 <F3>Represents total equity of General Partners & Limited Partners of $(134,664) and $185,665,224 <F4>Represents interest income on investments in mortgages & cash <F5>Includes $1,593,436 of amortization related to prepaid fees & expenses <F6>Net income allocated $277,422 to the General Partners & $8,969,967 to the Limited Partners. Average net income per unit of Limited Partners interest is $.70 on 12,770,261 units outstanding. </FN>