Abstract: It’s an objective fact that imbalanced land development opportunities induced by planning regulation, such as urban development and ecological protection, undoubtedly differentiate rural household income. However, there is a lack of quantitative measurement. Measuring and decomposing the impacts of land development opportunities on rural household income can support policies of territorial spatial planning to rectify the imbalanced regional development that may be caused by planning. The Sino-French Ecological New Town and Xiaosi Township in Caidian District of Wuhan City are typical areas for urban development and wetland protection, where we surveyed 573 rural households by random sampling in 2021. The impacts of land development opportunities on rural household income were examined by propensity score matching and mediation effect model. The results showed that, firstly, the non-agricultural development opportunities of land in urban development zones had a significantly positive impact on the total income, local wage income, and transfer income of rural household. The estimated ATT values were 0.112, 1.014, and 0.254, respectively. Urban development and its economic agglomeration increased the household non-farm employment. The promotion effect of land development opportunities on farmers’ wage income was more significant for high-quantity, and low-quality households. Secondly, the allocation of household labor force intermediated the effect of land non-agricultural development opportunities on household income. The mediating effect of the proportion of household workers was 0.116, which was significant at the 1% level. Thirdly, compared to the wetland reserve, the income gaps in the urban development zones were smaller. The main reason was that the land development opportunities promoted the wage income growth of low-income household, and the negative impact on farming income was lower than that of high-income household. It was suggested to establish a co-construction and sharing mechanism for transferring added land value of land development to ecological protection and agricultural farming areas, so as to realize the sharing of land value increments between restricted and unrestricted development zones.