This study addresses a crucial research gap by investigating the optimal position of shear walls, the ideal shear wall-floor area ratio in building design, and their correlation with building height using non-linear analysis (Static and Dynamic). The results, including capacity curves, inter-story drift, and performance levels from both nonlinear static analysis and nonlinear dynamic analysis, are explored. Adopting principles of performance-based seismic design, the study reflects a comprehensive approach to seismic analysis and mitigation. The findings underscore that elevating the shear wall ratio not only enhances structural rigidity but also improves reliability in terms of inter-story drift, playing a crucial role in achieving the desired performance level during the design process. For a 7-story structure, a 1.00% shear wall–floor ratio is crucial, while a 1.5% ratio is essential for a 14-story structure to meet design conditions. The study highlights the intricate interplay among shear wall–floor ratios, optimal shear wall positions, and their correlation with building height as pivotal factors or main criteria influencing performance and structural integrity. Additionally, the presence of shear walls adopting compound forms (Box, U, and L) enhances reliability, while incomplete shear walls within the frame degrade half-filled frame stiffness, impacting short beam integrity. Furthermore, the study confirms the reliability of both nonlinear dynamic analysis and nonlinear static analysis, providing valuable insights into optimizing building designs for enhanced structural performance.