To evaluate the heterogeneity of the No. 3 coal reservoir fracture permeability of Zhengzhuang area in the southern Qinshui Basin, several fracture models were reviewed and their applicability to coal reservoirs was discussed. Fourteen coalbed methane exploration wells with well test data were used to perform an optimization of the fracture parameter models. The results showed that fracture porosity presents a strong correlation with the well test permeability. Fracture porosity was calculated by the dual laterolog iterative method, in which the fracture distortion coefficient K r was introduced. Based on this correlation, the F-S fracture permeability calculation model was adopted to acquire the fracture permeability of coalbed methane wells in the Zhengzhuang area. The predicted fracture permeability is generally low in the Zhengzhuang area, ranging from 0.01 to 0.37 mD, with an average of 0.07 mD. The planar permeability is strongly heterogeneous. The permeability of the No. 3 coal reservoir is relatively low close to the Shitou and Houchengyao normal faults in the southern Zhengzhuang area, but high in the midwestern Zhengzhuang area, with an average of 0.21 mD. The fracture permeability of the coal reservoir in the vertical direction is in the range of 0.005 to 0.680 mD, decreasing significantly with increasing burial depth. The regional distribution of permeability is mainly controlled by burial depth and in situ stresses. The permeability is high in the shallow area and in the minor concomitant fault zone, but low in the folding area and near major faults. The heterogeneity of the coal reservoir has an important effect on the permeability in the vertical direction. The best prospective target area for coalbed methane production is predicted by the minimum requirements of gas content and thus permeability in this area. The prediction result has a good corresponding relation with the current production capacity of coalbed methane wells.