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Cyclic tests on modular building units for low-rise buildings composed of stud panels and a light-weight steel perimeter frame, were performed to evaluate the earthquake resistance such as stiffness, load-carrying capacity, ductility, and energy dissipation per load cycle. The strap-braced and sheeted stud panels were used as the primary lateral load-resistant element of the modular building units. Test results showed that the modular building units using the strap-braced and sheeted stud panels exhibited excellent post-yield ductile behaviors. The maximum drift ratios were greater than 5.37% and the displacement ductility ratios were greater than 5.76. However, the energy dissipation per load cycle was poor due to severe pinching during cyclic loading. Nominal strength, stiffness, and yield displacement of the modular building units were predicted based on plastic mechanisms. The predictions reasonably and conservatively correlated with the test results. However, the elastic stiffness of the strap-braced stud panel was significantly overestimated. For conservative design, the elastic stiffness of the strap-braced stud panel needs be decreased to 50% of the nominal value.