<PAGE> PAGE 1
000 A000000 06/30/97
000 C000000 0000896165
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 U
001 A000000 THE STRATTON FUNDS, INC.
001 B000000 811-7434
001 C000000 6109410255
002 A000000 610 W. GERMANTOWN PIKE, SUITE 300
002 B000000 PLYMOUTH MEETING
002 C000000 PA
002 D010000 19462
002 D020000 1050
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 1
007 C010100 1
007 C020100 STRATTON SMALL-CAP YIELD FUND
007 C030100 N
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A00AA01 STRATTON MANAGEMENT COMPANY
008 B00AA01 A
008 C00AA01 801-8681
008 D01AA01 PLYMOUTH MEETING
008 D02AA01 PA
008 D03AA01 19462
008 D04AA01 1050
020 A000001 1. INTERSTATE/JOHNSON LANE CORPORATION
020 B000001 56-0276690
020 C000001 8
020 A000002 2. NUTMEG SECURITIES
020 B000002 06-1186517
020 C000002 2
020 A000003 3. DEAN WITTER REYNOLDS INC.
020 B000003 94-1671384
020 C000003 2
<PAGE> PAGE 2
020 A000004 4. OFFUTT SECURITIES, INC.
020 B000004 52-1508686
020 C000004 1
020 A000005 5. C.L. KING & ASSOCIATES, INC.
020 B000005 13-2700327
020 C000005 1
020 A000006 6. WILLIAM O'NEIL & CO. INC.
020 B000006 95-2269163
020 C000006 1
020 A000007 7. ALEX. BROWN & SONS INCORPORATED
020 B000007 52-1319768
020 C000007 1
020 A000008 8. LEGG MASON WOOD WALKER, INC.
020 B000008 52-0902557
020 C000008 1
020 A000009 9. SHAPIRO-BERGMAN
020 B000009 22-1763343
020 C000009 1
020 C000010 0
021 000000 18
022 A000001 1. THE BANK OF NEW YORK
022 B000001 13-4941102
022 C000001 40037
022 D000001 0
022 A000002 2. SHAPIRO-BERGMAN
022 B000002 22-1763343
022 C000002 259
022 D000002 0
022 A000003 3. HERZOG, HEINE, GEDULD, INC.
022 B000003 13-1955436
022 C000003 172
022 D000003 0
022 A000004 4. C.L. KING & ASSOCIATES, INC.
022 B000004 13-2700327
022 C000004 0
022 D000004 147
022 A000005 5. JEFFERIES & COMPANY, INC.
022 B000005 95-2622900
022 C000005 108
022 D000005 0
022 A000006 6. DEAN WITTER REYNOLDS INC.
022 B000006 94-1671384
022 C000006 0
022 D000006 93
022 C000007 0
022 D000007 0
022 C000008 0
022 D000008 0
022 C000009 0
022 D000009 0
022 C000010 0
<PAGE> PAGE 3
022 D000010 0
023 C000000 40576
023 D000000 240
028 A01AA00 87
028 A02AA00 0
028 A03AA00 0
028 A04AA00 313
028 B01AA00 570
028 B02AA00 0
028 B03AA00 0
028 B04AA00 450
028 C01AA00 1859
028 C02AA00 45
028 C03AA00 0
028 C04AA00 1805
028 D01AA00 480
028 D02AA00 0
028 D03AA00 0
028 D04AA00 422
028 E01AA00 237
028 E02AA00 0
028 E03AA00 0
028 E04AA00 31
028 F01AA00 1352
028 F02AA00 289
028 F03AA00 0
028 F04AA00 13
028 G01AA00 4585
028 G02AA00 334
028 G03AA00 0
028 G04AA00 3034
028 H00AA00 0
058 A00AA00 N
059 00AA00 Y
060 A00AA00 Y
060 B00AA00 Y
061 00AA00 2000
062 A00AA00 N
062 B00AA00 0.0
062 C00AA00 0.0
062 D00AA00 0.0
062 E00AA00 0.0
062 F00AA00 0.0
062 G00AA00 0.0
062 H00AA00 0.0
062 I00AA00 0.0
062 J00AA00 0.0
062 K00AA00 0.0
062 L00AA00 0.0
062 M00AA00 0.0
062 N00AA00 0.0
<PAGE> PAGE 4
062 O00AA00 0.0
062 P00AA00 0.0
062 Q00AA00 0.0
062 R00AA00 0.0
066 A00AA00 Y
066 B00AA00 N
066 C00AA00 N
066 D00AA00 N
066 E00AA00 Y
066 F00AA00 N
066 G00AA00 N
067 00AA00 N
068 A00AA00 N
068 B00AA00 N
069 00AA00 N
071 A00AA00 4693
071 B00AA00 3010
071 C00AA00 22337
071 D00AA00 13
072 A00AA00 6
072 B00AA00 30
072 C00AA00 311
072 D00AA00 0
072 E00AA00 0
072 F00AA00 128
072 G00AA00 4
072 H00AA00 0
072 I00AA00 8
072 J00AA00 6
072 K00AA00 0
072 L00AA00 2
072 M00AA00 1
072 N00AA00 20
072 O00AA00 1
072 P00AA00 0
072 Q00AA00 8
072 R00AA00 13
072 S00AA00 1
072 T00AA00 0
072 U00AA00 0
072 V00AA00 0
072 W00AA00 1
072 X00AA00 193
072 Y00AA00 0
072 Z00AA00 148
072AA00AA00 523
072BB00AA00 0
072CC01AA00 3622
072CC02AA00 0
072DD01AA00 130
072DD02AA00 0
<PAGE> PAGE 5
072EE00AA00 304
073 A01AA00 0.2000
073 A02AA00 0.0000
073 B00AA00 0.4600
073 C00AA00 0.0000
074 A00AA00 9
074 B00AA00 0
074 C00AA00 2000
074 D00AA00 0
074 E00AA00 0
074 F00AA00 26016
074 G00AA00 0
074 H00AA00 0
074 I00AA00 0
074 J00AA00 0
074 K00AA00 0
074 L00AA00 48
074 M00AA00 0
074 N00AA00 28073
074 O00AA00 629
074 P00AA00 0
074 Q00AA00 0
074 R01AA00 0
074 R02AA00 0
074 R03AA00 0
074 R04AA00 10
074 S00AA00 0
074 T00AA00 27434
074 U01AA00 695
074 U02AA00 0
074 V01AA00 39.49
074 V02AA00 0.00
074 W00AA00 0.0000
074 X00AA00 916
074 Y00AA00 0
075 A00AA00 0
075 B00AA00 23432
076 00AA00 0.00
077 A000000 N
078 000000 N
080 C00AA00 0
081 B00AA00 0
082 B00AA00 0
083 B00AA00 0
084 B00AA00 0
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
<PAGE> PAGE 6
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE MICHELLE A. WHALEN
TITLE COMPLIANCE ADMIN.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000896165
<NAME> THE STRATTON FUNDS, INC.
<SERIES>
<NUMBER> 1
<NAME> STRATTON SMALL-CAP YIELD FUND
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<INVESTMENTS-AT-COST> 19861
<INVESTMENTS-AT-VALUE> 28016
<RECEIVABLES> 48
<ASSETS-OTHER> 9
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 28073
<PAYABLE-FOR-SECURITIES> 629
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10
<TOTAL-LIABILITIES> 639
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 18744
<SHARES-COMMON-STOCK> 695
<SHARES-COMMON-PRIOR> 646
<ACCUMULATED-NII-CURRENT> 18
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 517
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8155
<NET-ASSETS> 27434
<DIVIDEND-INCOME> 311
<INTEREST-INCOME> 30
<OTHER-INCOME> 0
<EXPENSES-NET> 193
<NET-INVESTMENT-INCOME> 148
<REALIZED-GAINS-CURRENT> 522
<APPREC-INCREASE-CURRENT> 3622
<NET-CHANGE-FROM-OPS> 4292
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 130
<DISTRIBUTIONS-OF-GAINS> 304
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 126
<NUMBER-OF-SHARES-REDEEMED> 86
<SHARES-REINVESTED> 9
<NET-CHANGE-IN-ASSETS> 5743
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 299
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 128
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 193
<AVERAGE-NET-ASSETS> 23432
<PER-SHARE-NAV-BEGIN> 33.58
<PER-SHARE-NII> 0.23
<PER-SHARE-GAIN-APPREC> 6.34
<PER-SHARE-DIVIDEND> 0.20
<PER-SHARE-DISTRIBUTIONS> 0.46
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 39.49
<EXPENSE-RATIO> 1.68
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
