According to Spotrac, the Texans will enter the new league year with just $9.2 million in available cap space.
Houston also has 10 of its own free agents who played at least 300 snaps for the team last season, making it likely that a decent chunk of the Texans' remaining cap room will go towards bringing back those players.
Check back here often for all the latest rumors, reports and free-agent signings from the Texans as free agency begins. We'll provide real-time updates, analysis and grades on every move Houston makes.
March 17: According to Ian Rapoport of NFL.com, the Texans are interested in re-signing punter Donnie Jones.
March 15: According to NFL Network, Ed Reed left Houston Friday without a deal, and no deal is imminent.
March 15: Adam Schefter now reports that it is "50-50 at best" that Ed Reed signs with the Texans.
March 14: According to Adam Schefter of ESPN, "every sign" points to Ed Reed signing with the Texans by Friday.
March 14: Aaron Wilson reports that safety Ed Reed wants as much as $6 million a year, but that the Texans are "very serious" about him. Houston is flying him in Thursday.
March 13: According to John McClain, the Texans have reached out to free-agent defensive back Charles Woodson.
March 13: A source for Pro Football Talk said that the potential destinations for recently released cornerback Nnamdi Asomugha included the Texans.
March 13: Veteran safety Ed Reed will visit with the Texans on Thursday, according to John McClain of the Houston Chronicle.
March 12: Ian Rapoport of NFL.com reporting that Texans' free-agent safety Glover Quin will visit the Lions, and Kevin Seifert of ESPN.com chimes in that Detroit is "very interested."
March 12: According to Adam Schefter of ESPN, the Texans released veteran receiver Kevin Walter.
March 12: John McClain of the Houston Chronicle gives the Texans only a 30 percent chance of retaining free agent Connor Barwin. Safety Glover Quin is listed at 70 percent.
March 9: Jason Cole of Yahoo! Sports reports that three-to-four teams are interested in signing free-agent cornerback Brice McCain, who served as Houston's nickel back in 2012.
March 7: Both John McClain and Lance Zierlein of the Houston Chronicle believe that the Texans will not pursue recently-released tackle Eric Winston, who was drafted by the Texans in 2006 and went on to play six years in Houston.
March 4: According to Adam Caplan of the Sideline View, the Texans "badly" want to re-sign free-agent safety Glover Quin.
Feb. 12: John McClain of the Houston Chronicle reported that the Texans will not pursue free-agent receiver Mike Wallace, instead using their cap room to either "re-sign vets" or "extend players such as Brian Cushing and Antonio Smith."
P Shane Lechler: The Texans signed the former Raiders Pro Bowl punter, per Adam Schefter.
CB Brice McCain: The Texans re-signed McCain to a three-year deal, per John McClain.
OT Andrew Gardner: The Texans re-signed the offensive tackle, via the team's official Twitter account. Gardner was a restricted free agent.
RB Justin Forsett: The Jacksonville Jaguars agreed to terms with the former backup running back, according to the team's official Twitter account.
LB Connor Barwin: The Philadelphia Eagles have agreed to terms with the former Texans' pass-rusher, per Tania Ganguli.
S Glover Quin: The Detroit Lions have agreed to terms with the former Texans safety, per Adam Schefter.
WR Kevin Walter: The Texans released their veteran receiver Tuesday, per Adam Schefter.
The Texans simply couldn't afford to let another member of their secondary get away.
Luckily for Houston, cornerbacks haven't commanded big dollars on the open market, so McCain will probably return on a team-friendly deal.
The Texans' slot cornerback in both 2011 and 2012, McCain regressed slightly last season after a terrific first year inside. Still, when he plays primarily in the slot, McCain is a valuable asset for the Houston defense.
The cash-strapped Texans lucked out that the cornerback market hasn't been very active money-wise. Getting back McCain is a big score for a team that has already lost Connor Barwin and Glover Quin from the 2012 defense.
Losing Glover Quin to the Detroit Lions necessitated the need to find a safety, and the veteran Reed is an ideal fit.
Over 11 years with the Ravens, Reed amassed nine trips to the Pro Bowl and eight All-Pro selections, along with 61 interceptions and 13 defensive touchdowns. He was the NFL's defensive player of the year in 2004 and a Super Bowl champion in 2013.
Reed should slide into Quin's role at the backend of a defense that struggled at times in 2013, especially late in the season. Even as he turns 35 years old in September, Reed can bring a play-making presence for the still Super Bowl-worthy Texans.
Houston may have paid more they would have liked to, but this is a positive move. In the short-term, the Texans just got better.