Reed departed in order to tend to a previous engagement, ESPN NFL Insider Adam Schefter reported.
A source previously told ESPN that the chances of the free-agent safety signing with the Texas is "50-50" at best.
The 34-year-old Reed, a nine-time Pro Bowler with the Baltimore Ravens, arrived in Houston on Thursday aboard team owner Bob McNair's private jet and had a full day of meetings.
Signing Reed would make up for an otherwise disappointing start to free agency for Houston. The Texans cut receiver Kevin Walter, then lost versatile tight end James Casey to Philadelphia and safety Glover Quin to Detroit after the opening of the free-agency signing period.
Reed, 34, is the Ravens' franchise leader in interceptions with 61, and his 1,541 return yards with those pickoffs is an NFL career record. He was the NFL's top defensive player in 2004.
If he signs elsewhere, he'd be the latest veteran to depart the Super Bowl champs. This offseason, the Ravens already have lost eight members from their title-winning team.
Baltimore has released safety Bernard Pollard and guard Bobbie Williams, traded wide receiver Anquan Boldin to the San Francisco 49ers, lost linebackers Dannell Ellerbe [Miami Dolphins] and Paul Kruger [Cleveland Browns] in free agency and watched linebacker Ray Lewis and center Matt Birk retire.
Information from ESPN.com AFC North blogger Jamison Hensley and The Associated Press was used in this report.