This study experimentally investigates the effect of the vertical distance of openings from the horizontal runner on the seismic performance of cold-formed steel (CFS) walls sheathed with gypsum boards. Two full-scale frame types, each measuring 2400 × 2400 mm and containing a single 1200 × 1200 mm opening, were designed and constructed. In Frame A, the opening was positioned 300 mm from the top runner, while in Frame B this distance was set at 400 mm. To ensure the accuracy and repeatability of the results, three specimens of each frame type were tested under cyclic loading in accordance with ASTM E2126-07. The experimental results revealed that reducing the vertical distance of the opening from the horizontal runner directly improves the lateral resistance of the walls. Specifically, the average ultimate lateral resistance was measured at 4.82KN for Frame A and 3.84 KN for Frame B, indicating a 20–25% reduction in resistance when the opening was placed farther from the runner. In contrast, the ultimate displacement remained nearly constant at approximately 48 mm for both frame types, demonstrating that the position of the opening has little influence on the displacement capacity of the system. Furthermore, the observed failure modes indicated that in Frame A, failure initiated at larger displacements, and the screws around the opening detached later compared to Frame B, suggesting a more favorable stress distribution and improved connection performance in this configuration.