Several factors of parking behavior, such as walking distance, parking fees, parking willingness, were considered comprehensively in this paper. The parking cost was decomposed into the cost of driving time, walking time, and parking fees. The definition and calculation method of virtual cost considering driver's willingness were given, and the sensitivity analysis of psychological impedance of walking distance and parking fee were conducted. Then the constraints of parking guidance control variables were determined, and the model of area dynamic allocation and guidance of parking space was established which minimized the total virtual parking cost of parking guidance system. The example analysis shows that this model can formulate the reasonable scheme of dynamic allocation and guidance of parking space considering the overall parking demand of the whole area. Compared with the broadcast parking guidance method, this method can decrease the phenomenon of looking for parking lots repeatedly and reduce the total actual parking cost of the whole area, especially when parking space is in tension.