<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               JUN-30-1995
<CASH>                                       3,220,863
<SECURITIES>                                         0
<RECEIVABLES>                                  176,062
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                             3,352,351
<PP&E>                                      33,353,075
<DEPRECIATION>                               3,404,538
<TOTAL-ASSETS>                              42,157,654
<CURRENT-LIABILITIES>                          441,670
<BONDS>                                              0
<COMMON>                                             0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                  41,715,984
<TOTAL-LIABILITY-AND-EQUITY>                42,157,654
<SALES>                                              0
<TOTAL-REVENUES>                             2,158,684
<CGS>                                                0
<TOTAL-COSTS>                                  113,427
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              1,421,458
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          1,421,458
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,421,458
<EPS-PRIMARY>                                      .55
<EPS-DILUTED>                                      .55