Kevin O'Connor of The Ringer reported the Rockets' interest, though he noted Minnesota's desire to move Covington is unclear. Covington is considered a coveted trade chip because of his three-and-D skills and manageable salary (two years, $25 million remaining after 2019-20).
While his deal is considered a value around the league, it's hard to find an avenue in which the Rockets can finagle a trade. Barring an unlikely trade of PJ Tucker, their best defender and a beloved locker room presence, the Rockets' best salary match is Eric Gordon.
It seems highly unlikely the Timberwolves would be interested in adding Gordon, given the four-year, $75 million contract extension he signed over the summer. Gordon has dealt with injuries throughout the season and is playing the worst basketball of his career when he's in the lineup, though he's only played in nine games this season.
The Timberwolves may also be hesitant to move Covington because they're in contention for a playoff spot. Minnesota enters Tuesday just one game back of the eighth seed in the Western Conference.
If Covington is ultimately moved, it likely won't happen until late January or early February when the playoff picture is coalescing.