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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 WgDJS7HfMlVt2hZxdFDU3+LjAwiBTu9uGu3oU53u7ups8BOukPZlQ96kf7Z5ccbn
 U3u2pom3MpdDZ5nA2aCNcw==

<SEC-DOCUMENT>0001179110-07-008002.txt : 20070418
<SEC-HEADER>0001179110-07-008002.hdr.sgml : 20070418
<ACCEPTANCE-DATETIME>20070418141020
ACCESSION NUMBER:		0001179110-07-008002
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070418
FILED AS OF DATE:		20070418
DATE AS OF CHANGE:		20070418

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Harrington Lynne M
		CENTRAL INDEX KEY:			0001396845

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-07444
		FILM NUMBER:		07773094

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		612-303-3770

	MAIL ADDRESS:	
		STREET 1:		800 NICOLLET MALL
		STREET 2:		MAIL STOP BC-MN-H21C
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55402

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERICAN STRATEGIC INCOME PORTFOLIO INC III
		CENTRAL INDEX KEY:			0000896161
		STANDARD INDUSTRIAL CLASSIFICATION:	UNKNOWN SIC - 0000 [0000]
		IRS NUMBER:				411739732
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0831

	BUSINESS ADDRESS:	
		STREET 1:		800 NICOLLET AVE
		STREET 2:		BC-MN-HO5F
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55402
		BUSINESS PHONE:		6123033381

	MAIL ADDRESS:	
		STREET 1:		800 NICOLLET AVE
		STREET 2:		BC-MN-HO5F
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55402

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN STRATEGIC INCOME INC III
		DATE OF NAME CHANGE:	19930426
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 3 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2007-04-18</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000896161</issuerCik>
        <issuerName>AMERICAN STRATEGIC INCOME PORTFOLIO INC III</issuerName>
        <issuerTradingSymbol>CSP</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001396845</rptOwnerCik>
            <rptOwnerName>Harrington Lynne M</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>800 NICOLLET MALL</rptOwnerStreet1>
            <rptOwnerStreet2>BC-MN-H21C</rptOwnerStreet2>
            <rptOwnerCity>MINNEAPOLIS</rptOwnerCity>
            <rptOwnerState>MN</rptOwnerState>
            <rptOwnerZipCode>55402</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>1</isOther>
            <officerTitle></officerTitle>
            <otherText>Head of Institutional Dist</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>AMERICAN STRATEGIC INCOME PORTFOLIO III, INC</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes></footnotes>

    <ownerSignature>
        <signatureName>Lynne M. Harrington</signatureName>
        <signatureDate>2007-04-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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