Nene, a 14-year veteran, will sign a contract worth $2.9 million, according to The Undefeated's Marc J. Spears.
Nene tweeted about his destination Wednesday.
I am honored to become part of the Houston Family!! 👊 Thank you for the opportunity and LETS GO ROCKETS!!!— Nene Hilario (@NeneHilario42) July 6, 2016
Houston was seeking a center to help with depth after the departure of Dwight Howard, who agreed to terms with Atlanta last week. As it stood, Clint Capela was slated to start at the position. The Rockets also drafted Chinanu Onuaku in the second round last month.
Last season for Washington, Nene averaged 9.2 points and 4.5 rebounds in 57 games. For his career, Nene has averaged 12.2 points and 6.5 rebounds per game.
Nene, 33, missed 25 games in 2015-16 due to injury and has played in only 238 of 328 regular-season games in the past four seasons.
He had a $19.5 million cap hold entering the summer and was renounced by Washington to clear enough space to allow the Wizards to pursue max-contract free agents.
ESPN's Ian Begley contributed to this report.