Considering the effects of cold-forming and strain hardening in the design of cold-formed stainless steel columns is an effective way to reduce construction costs. This approach has become a common trend in the revision of relevant design codes. A few studies were conducted in the past on two key aspects: (i) predicting the enhanced material properties in cold-formed stainless steel cross-sections and (ii) modifying the design methods to adapt to stainless steel material characteristics. However, in the existing literature, they had been separately studied, and integration of these two aspects to form a complete design method was rarely reported. In this study, a series of column tests were conducted on 19 stub and 32 long columns in rectangular hollow sections. The measured imperfections, material properties, load-displacement curves, and failure modes were reported. A new design method for columns was developed, which could clearly and accurately determine the column capacity over the space encompassed by member slenderness and cross-sectional slenderness values. The proposed design method and the method laid out in the Design Manual for Structural Stainless Steel were evaluated against the test data. It was demonstrated that the two design methods were both very conservative in predicting the column capacity when material properties in the annealed condition were used. However, their performances improved when the predicted enhanced material properties were used. Generally, the predictions of the proposed design method matched the test data better. Furthermore, a reliability analysis was conducted, and resistance factors were recommended for the corresponding design methods.