This paper presents a hierarchical stream selection approach to deal with the interference in a heterogeneous network where different cell types are coexisting with each other to increase the sum capacity. Due to the variety of the transmit powers between the macro and small cells, interference levels are different. The proposed solution hierarchically selects the strongest streams of each cell with a contribution to the sum rate, while constructing the streams via singular value decomposition (SVD). In order to reduce the interference, the channel matrices of the remaining streams are projected orthogonally to the virtual transmit channel and virtual receive channel of the selected stream. The performance evaluations are obtained by considering different locations of small cells with respect to the macro cell. It is shown that the proposed method can dynamically select more streams in heterogeneous networks and achieve higher data rates compared to the existing algorithms.