In sensed buildings, information related to occupant movement helps optimize functions such as security, energy management, and caregiving. Due to privacy needs, non-intrusive sensing approaches for tracking occupants inside buildings, such as vibration sensors, are often preferred over intrusive strategies that involve use of cameras and wearable devices. Current sensor-based occupant-localization approaches are data-driven techniques that do not account for structural behavior and limited to slabs on grade. Varying-rigidity floors and inherent variability in walking gaits lead to ambiguous interpretations of floor vibrations when performing model-free occupant localization. In this paper, an extensive analysis of vibrations induced by a range of occupants is described. Firstly, the need for a structural-behavior model for occupant localization is assessed using two full-scale case studies. Structural behavior is found to significantly influence floor vibrations induced by footstep impacts. Since a simple relationship between distances from footstep-impact to sensor locations cannot be assured, the use of physics-based models is necessary for accurate occupant localization. Secondly, measured data are interpreted using physics-based models and information related to uncertainties from multiple sources. There are two types of uncertainties: modelling uncertainties and measurement uncertainties, including variability in walking gaits. Error-domain model falsification (EDMF) and residual minimization (RM) are model-based approaches for data interpretation. Unlike RM, EDMF explicitly accounts for the presence of systematic errors in parameters and overall model bias. In this paper, model-based occupant localization is carried out using EDMF and RM on a full-scale case study. By explicitly accounting for the presence of uncertainties and the influence of structural behavior, EDMF, unlike RM, accurately reveals possible occupant locations on floor slabs.