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The research aims at establishing system of urban land grade and datum land prices in Hubei province of China. The balance of urban datum land prices is made to harmonize regional land prices among cities and to make datum land prices truly reflect different economic development levels. Principal component analysis enhances selection of evaluation factors and confirmation of weights. K-Means clustering by distance is used to enhance the efficiency of land gradation. We propose the method of zoning by regional economic development level to determine reasonable capitalization rate and capacity rate. Then we choose representative towns based on coincidence level between score of evaluation units in land gradation and datum land prices, by establishing linear regression equation or exponential regression equation, we can balance urban datum land prices, on the basis of improving piecewise linear interpolation, the paper presents the method of validation by piecewise regression analysis model and spatial interpolation.