The Cleveland Browns waived Williams on Monday. The Texans announced the acquisition on Tuesday.
New York activated wide receiver Jalin Marshall to the active roster while waiving Williams in a corresponding transaction. Marshall was serving a four-game suspension.
Houston released cornerback Johnthan Banks and tackle Jah Reid in corresponding moves on Tuesday.
Williams, 26, had four combined tackles in five games this season for the Jets. The Texans need help in the secondary after losing Kevin Johnson to a sprained MCL in September. The Texans currently have Johnathan Joseph, Kareem Jackson, Marcus Burley and Treston Decoud joining Williams and Johnson on the depth chart at cornerback.
Houston hosts the Cleveland Browns at 1 p.m. Sunday at NRG Stadium. The Texans are tied for allowing the fourth-most touchdown passes to quarterbacks this season.