Almost. It was declassified as a disease by the American Psychiatric Association in 1973 [1] (and by the American Psychological Association in 1975 [2]), and the DSM-III has been the first edition to not include homosexuality.
It still contained ego-dystonic homosexuality (TL;DR: "I don't want to be gay") - which was opposed by the APA in 1987 [3] - until 1988, with the publication of the DSM-III-R.