AL.com reported first reported the move on Tuesday.
It will be Applewhite's second stint with the Crimson Tide; he spent one season as the school's offensive coordinator in 2007 before joining Texas. He is the latest former FBS coach to become an analyst at Alabama, following Steve Sarkisian and Butch Jones.
Applewhite was fired by Houston in December after going 15-11 in two-plus seasons leading the program. He was owed a $1.95 million buyout by the Cougars.
Houston rose to as high as No. 17 in The Associated Press poll in 2018 following a 7-1 start, but the Cougars dropped four of their final five games, including a 70-14 loss to Army in the Lockheed Martin Armed Forces Bowl. That loss tied the record for the largest margin of defeat in an FBS bowl game.