According to the IRS Publications, EIC is allowed. According to the Tax Code, it seems questionable.
The Tax Code classifies several things that are considered "investment" income for purposes of the Earned Income Credit. The two pertinent ones for your situation are (1) income from "rents or royalties" and (2) "passive" income.
Most real estate rental is "passive", which would disqualify EIC. However, rental of land is NOT passive, so EIC is not disqualified under that category.
Although rental of land certainly would seem to be "rents" which would disqualify EIC, the IRS Publications state otherwise. The IRS Publications refer to royalties or "rental of personal property" ("personal property" refers to non-real estate). So if the Publication is correct, EIC is allowed because it is not passive income nor is it "rental of personal property".
As for whether or not the Publication is correct, I am not sure. I have looked before and was not able to find any official IRS guidance that "rents" in that section of the Tax Code was to be interpreted as only referring to "personal property". But if you want to rely on the IRS Publication, then EIC would be allowed.
