Self-centering rocking walls offer the possibility of minimizing repair costs and downtimes, and also nullify the residual drift after seismic events, thanks to their self-centering properties. In this paper, the effect of axial stress ratio on the behavior of monolithic self-centering rocking walls is investigated by utilizing a developed finite element model. To verify the validity of the finite element model, results and observed damage in the model are compared with those of a full-scale wall test. The axial stress ratio is varied from 0.024 to 0.30 while keeping the other structural parameters constant. For qualitative damage evaluation, the observed damage in the model compared with expected damage states of desired performance levels. In order to evaluate the incurred damage quantitatively, the amount of crushing and damage in the wall is calculated by utilizing several ratios (crushing ratio and damage ratio). Furthermore, seismic response factors (i.e., μ, R and Cd) are calculated for different axial stress ratio values. The obtained results showed that, in order to satisfy the requirements of desired performance levels, the maximum axial stress ratio should be approximately within the range of 0.10–0.15. In addition, the maximum overall damage ratio and crushing ratio are suggested to be less than 5%. For axial stress ratio higher than 0.15, the flag-shaped pattern of hysteresis curves completely disappeared and the variation of displacement ductility is less sensitive to axial stress ratio. Considering the maximum axial stress ratio limited to 0.150, values of 4 and 3.5 are conservatively proposed as a period-independent response modification factor and displacement modification factor of the investigated structural wall, respectively.