PSYCHO III (1986)
Starring Anthony Perkins and Diana Scarwid
Bates is still running his Motel. Scarwid plays a troubled ex-nun that Bates falls in love with. Of course, he loses his marbles and starts killing again.
"Psycho III" features more bloodshed than previous entries in the series and Perkins is awesome in a scene wearing his mother's wig, when a nosy woman reporter tries to convince him he shouldn't be worshipping the body of a woman who told him she was his mother during the events of the second film.
Not as good as "Psycho II," the film was directed by Perkins, whose career in the 1980s consisted almost entirely of playing Bates again and again, then starring in a variety of low-budget horror films. It was a shame because he was a talented actor, type-cast forever as Bates. The movie just feels predictible. Bates is back in business, and new victims just happen upon his motel.
Bates would star as the character one last time, in the rather good made-for-cable movie, "Psycho IV: The Beginning."