Inclusionary Zoning (IZ) is a land-use planning initiative undertaken by governments that either mandates or provides voluntary incentives to achieve a proportion of affordable housing in a development project. This research aims to assess the land-use suitability of the current IZ projects in the Australian Capital Territory (ACT) by comparing them with IZ land-use suitability study findings. A multi-criteria IZ land-use suitability analysis is conducted first to understand the desirable IZ land features while considering sustainable development objectives. Four criteria are selected, including socioeconomic integration, access to jobs, access to public transport, access to green space, and compliance with zoning rules. Results indicate relatively low suitability of current IZ regimes. We conclude that the assessed low suitability across different IZ projects is driven by the current market-based affordable housing provision approach, which highly relies on the private sector. Nevertheless, the research recognizes the need for improving IZ in the ACT through greater collaboration between the state government, the federal government, and the property sector.