Promoting income growth among farm households in collective forest areas is a key challenge for achieving the rural revitalization strategy. Based on 2019 survey data from Zhejiang, Jiangxi, and Fujian provinces, this study empirically analyzes the impact of the development of new forestry management entities on the income levels and income gaps of farm households at the micro level, using unconditional quantile regression and instrumental variable methods. The study explores the differences in impacts across various types of new forestry management entities. The findings show that the development of these entities has a significant positive effect on the income levels of farm households, with the effects becoming more pronounced when instrumental variables are applied. Additionally, the income return rate for low- and middle-income households is significantly higher than that for high-income households, with the former being 1.55 times greater, effectively narrowing the income gap among farmers. Further analysis reveals that forestry enterprises have the most significant impact on household income, while the influence of forestry cooperatives and large-scale professional households is less pronounced. Moreover, the impact on forestry income is particularly significant for low-income households. Based on these findings, the study suggests that while actively promoting the establishment of new forestry management entities in collective forest areas, special attention should be given to their role in benefiting low- and middle-income farmers. Support policies for different types of forestry management entities should be tailored to local conditions to effectively raise the income levels of farming households.