<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-31-1997 <PERIOD-END> SEP-30-1997 <CASH> 4,436,002 <SECURITIES> 163,659,804<F1> <RECEIVABLES> 1,094,391 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 4,992,932<F2> <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 174,183,129 <CURRENT-LIABILITIES> 163,274 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 172,979,521<F3> <OTHER-SE> 1,040,334<F4> <TOTAL-LIABILITY-AND-EQUITY> 174,183,129 <SALES> 0 <TOTAL-REVENUES> 11,165,683<F5> <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 2,481,751<F6> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 8,683,932 <INCOME-TAX> 0 <INCOME-CONTINUING> 8,683,932 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,683,932 <EPS-PRIMARY> 0<F7> <EPS-DILUTED> 0 <FN> <F1>Includes Participating Insured Mortgages("PIMs") of $131,062,351 and Mortgage-Backed Securities ("MBS") of $32,597,453. <F2>Includes prepaid acquisition fees and expenses of $10,861,154 net of accumulated amortization of $7,094,433 and prepaid participation servicing fees of $3,290,157 net of accumulated amortization of $2,063,946. <F3>Represents total equity of General Partners and Limited Partners. General Partners deficit of ($174,756) and Limited Partners equity of $173,154,277. <F4>Unrealized gain on MBS. <F5>Represents interest income on investments in mortgages and cash. <F6>Includes $1,295,153 of amortization of prepaid fees and expenses. <F7>Net income allocated $260,518 to the General Partners and $8,423,414 to the Limited Partners. Average net income per Limited Partner interest is $.66 on 12,770,261 Limited Partner interests outstanding. </FN>