July 31, 2000

		QUARTERLY REPORT TO THE LIMITED PARTNERS
			OF DSI REALTY INCOME FUND VIII


DEAR LIMITED PARTNERS:

We  are  pleased  to  enclose  the  Partnership's  unaudited  financial
statements  for  the  period  ended  June 30, 2000.  The  following  is
Management's  discussion  and  analysis  of  the  Partnership's  financial
condition  and  results  of  its  operations.

For the  three  month  periods  ended  June 30, 2000 and 1999, total revenues
increased 10.6% from $480,549 to $531,676 and total expenses increased  6.9%
from $326,419 to $349,035.  Equity in income of the real estate joint venture
decreased 11.5% from $29,576 to $26,189.  As a result, net income increased
13.7% from $183,706 to $208,830 for the three-month period ended June 30,
2000 as compared to the same period in 1999.  Rental revenue increased as a
result of higher unit rental rates.  Occupancy levels for the Partnership's
five mini-storage facilities averaged 87.3% for the three-month period ended
June 30, 2000 as compared to 82.7% for the same period in 1999.  The Partner-
ship is continuing its marketing efforts to attract and keep new tenants in
its various mini-storage facilities.  Operating expenses increased approxi-
mately $15,000 (5.3%) primarily as a result of higher repairs and mainten-
ance expense and property management fees, partially offset by a decrease
of salary and wages expense.  General and administrative expenses increased
approximately $7,600 (16.6%) primarily as a result of higher legal and
professional expense.  Equity in income from the real estate joint venture
decreased as a result of a decrease in rental revenue at that facility.

For the six month  periods  ended  June 30, 2000, and 1999, total  revenues
increased 7.8% from $969,240 to $1,045,057 and total expenses increased 2.8%
from $677,620 to $696,683.  Equity in income of the real estate joint venture
increased 5.7% from $55,225 to $58,378.  As a result, net income increased
17.3% from $346,845 to $406,752 for the six-month period ended June 30, 2000,
as compared to the same period in 1999.  Rental revenue increased as a result
of higher occupancy and unit rental rates.  Operating expenses increased
approximately $6,800 (1.2%) primarily as a result of increases in repairs
and maintenance, security and alarm service expenses and property management
fees, partially  offset by a decrease in  miscellaneous  advertising costs.
Property management fees, which are based on rental income, increased as a
result  of the  increase in  rental  revenue.  General  and administrative
expenses increased  approximately $12,300 (10.9%) primarily as a result of
higher incentive management fees, legal and professional and equipment and
computer lease expenses.  Equity in income from the real estate joint
venture increased as a result of lower operating expenses at that facility.

The  General  Partners will  continue  their  policy of funding improvements
and  maintenance  of  Partnership  properties  with  cash  generated  from
operations.  The  Partnership's  financial resources  appear  to  be  adequate
to meet its needs. The General Partners anticipate distributions to the Limited
Partners  to  remain  at  the  current  level  for  the  foreseeable  future.

We are not enclosing a copy of the Partnership Form 10-Q as filed with the
Securities  and  Exchange  Commission since all the information set forth
therein is contained  either in  this  letter or in the attached financial
statements. However, if you wish to receive a copy of said report, please
send a written request to DSI Realty Income Fund VIII, P.O. Box 357, Long
Beach, California 90801.

                              Very truly yours,

                              DSI REALTY INCOME FUND VIII
                              By: DSI Properties, Inc., as
                              General Partner



                              By  /s/ Robert J. Conway
                                  ____________________________
                                 ROBERT J. CONWAY, President