<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> 12-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> DEC-31-1996 <CASH> 4,666,597 <SECURITIES> 172,295,685<F1> <RECEIVABLES> 1,233,967 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 6,289,085<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 184,485,334 <CURRENT-LIABILITIES> 18,716 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 184,372,001<F3> <OTHER-SE> 94,617<F4> <TOTAL-LIABILITY-AND-EQUITY> 184,485,334 <SALES> 0 <TOTAL-REVENUES> 15,578,710<F5> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 3,557,675<F6> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 12,021,035 <INCOME-TAX> 0 <INCOME-CONTINUING> 12,021,035 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 12,021,035 <EPS-PRIMARY> 0<F7> <EPS-DILUTED> 0<F7> <FN> <F1>Includes Participating Insured Mortgages ("PIMs") of $139,380,751 and Mortgage-Backed Securities ("MBS") of $32,914,934 <F2>Includes prepaid acquisition fees and expenses of $11,476,258 net of accumulated amortization of $6,717,429 and prepaid participation servicing fees of $3,803,248 net of accumulated amortization of $2,272,992 <F3>Represents total equity of General Partners and Limited Partners. General Partners deficit of ($152,612) and Limited Partners equity of $184,524,613 <F4>Unrealized gain on MBS <F5>Represents interest income on investments in mortgages and cash <F6>Includes $1,953,298 of amortization of prepaid fees and expenses <F7>Net income allocated $360,631 to the General Partners and $11,660,404 to the Limited Partners. Average net income per Limited Partner interest is $.91 on 12,770,261 Limited Partner interests outstanding. </FN>