I am doing a research on 3D modelling of flood via terrain analysis looking at how water level rise will effect the spatial spread of area that are likely to be flooded base the topography
Entrenched streams such as gullies seldom flood. Aggraded streams flood frequently. If the stream type is unstable, such as these examples, modeling is more difficult. Long term flow records, visual records of flood heights, channel morphology, etc are data needs to help validate a model like suggested. Check out references at www.wildlandhydrology.com and there is enough information available free to help explain the need for stream classification and understanding whether the sediment and water supply are in balance and you have a normal or abnormal flooding regime. The relative flat, valley type terrain along streams may be floodplain, or terrace (an abandoned floodplain), but detailed measurements by trained hydrologists or others with this background can help improve or validate flooding models. In areas with hydrologic modifications, channelization, levees, dredging, etc. are more apt to be out of balance.
Latest HEC-RAS released today can work for 2D flood simulation. You can check this out in HEC website. It may not work for 3D although i am not sure of this. It is a free software with great addition of GIS interface. You might like to work on this.