FORM 8-K


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                 CURRENT REPORT



                       Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


                               September 26, 1997
                             ---------------------
                                 Date of Report
                        (Date of earliest event reported)



                        Metric Income Trust Series, Inc.
                        --------------------------------
                          (Exact name of registrant as
                            specified in its charter)




                  0-18294         California          94-3087630
                  -------         ----------          ----------
               (Registration    (State or Other     (IRS Employer
                    File        Jurisdiction of     Identification
                   Number)       Incorporation          Number)






           One California Street, San Francisco, California 94111-5415
           -----------------------------------------------------------
               (Address of principal executive offices) (Zip Code)


               Registrant's telephone number, including area code:

                                 (415) 678-2000

                    (800) 347-6707 Watts line for all states






ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS

(a)      The Registrant was organized to acquire,  hold for investment,  manage,
         and ultimately sell income-producing real properties and investments in
         securities.  Pursuant to its liquidation strategy,  the Registrant sold
         the  remainder  of  its  investments  in  mortgage-backed   securities,
         comprising  approximately  24% of total  assets,  on September  26, and
         September 30, 1997.

TERMS OF ORIGINAL ACQUISITION

Beginning on August 31, 1989, the Registrant acquired mortgage-backed securities
("MBS") guaranteed as to payment of interest and principal by the US Government,
by a US  Government  Agency  or  instrumentality,  or by a  federally  chartered
corporation.   The  Registrant  held  these  securities  as   available-for-sale
investments.  During the regular  course of business,  the  Registrant  sold and
reinvested  in pools to adjust the cash flow from these  investments.  Principal
repayments  were  either   reinvested  or  used  to  support  regular  quarterly
dividends.  Discounts and premiums were  amortized over the terms of the related
securities using the interest method.

TERMS OF DISPOSITION

The  Registrant  sold all remaining MBS on September 26, and September 30, 1997.
The sales price was $6,669,000  After payment of sale expenses,  the proceeds to
the Registrant are $6,668,000.

AMORTIZED COST BASIS AT DATES OF SALE

At the dates of sale, the amortized cost basis of the MBS was $6,479,000.


NET GAIN ON SALE

The net realized  gain  recognized in the third quarter of 1997 from the sale is
$189,000.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS

(a)      Financial statements
         Not applicable.

(b)      Pro Forma Financial Information
         Not applicable.

(c)      Exhibits.
         Not applicable






                                    SIGNATURE
                                    ---------

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                     METRIC INCOME TRUST SERIES, INC.,
                                     a California Corporation


                                     By:    /s/ William A. Finelli
                                            ------------------------------------
                                            William A. Finelli
                                            Chief Financial Officer


                                     Date:          October 10, 1997
                                             ----------------------------