The Government warning suggests that "flooding is expected" and "immediate action is required".
Further rainfall is forecast over the next 24 hours – and the situation is being closely monitored.
Homes and business next to the River Stour and Stourbridge Canal have been warned they could be affected by flooding.
The warning states: "River levels have risen at the Stourbridge river gauge as a result of persistent heavy rainfall. Consequently, flooding (of property) is imminent.
"Flooding is affecting properties around Prestwood, Bells Mill, Rushall Close, Morrow Way, Bradley Road, Canal Street and Mill Race Lane.
"Further rainfall is forecast over the next 24 hours. We are closely monitoring the situation. Please move family, pets, possessions, valuables and cars to safety."
Meanwhile a less serious flooding alert has been put in place for the River Stour and Smestow Brook in the Black Country and South Staffordshire, as well as the River Stour in the Kidderminster area.
Problems were also reported on the train lines – between Stourbridge Junction and Langley Green due to a landslip. All lines were blocked before 5.30am this morning, but the service was cleared by 7am.
More to follow.