Response Modification Factor(R-factor) approach is currently implemented to reflect inelastic ductile behavior of the structures and to reduce elastic spectral demands from earthquakes to the design level. However R factors were set empirically and simply based on the professional committee consensus on observed performance of building structures during past earthquakes. Consequently some major shortcomings linked to the current R factor approach have been pointed out. Using reinforced concrete intermediate moment-resisting frames(RC IMRFs), an analytical procedure is presented in this paper to establish R factor rationally. To this end, analytical R values were evaluated based on N2 Method and compared with the values recommended by IBC 2000. Overall, the analytical results correlated well with the code values. However the results also revealed that R factor might strongly depend on the system fundamental period. As evidenced by the interstory drift index(IDI) analysis results of this study, current R-factor based(or, Life Safety based) design tends to fail in fulfilling other implicit and hopeful performance objectives such as immediate Occupancy and Collapse Prevention. Performance based design(PBD) appears to be a promising approach to meet the multi level seismic performance objectives assigned to the building structures of nowadays.