The Dynamo sent their natural fourth-round pick in the 2014 MLS SuperDraft to the Timbers in exchange for Graye after the Timbers had originally selected the defender from D.C. United in the MLS Expansion Draft in November.
The 23-year old made 20 starts for the Washington club in 2010 and will be a good addition to the Houston playing roster according to coach Dominic Kinnear.
"Jordan is a promising young defender who is known for being a good athlete," Kinnear said. "He was pretty unheralded but played a lot of games for D.C. last year. I'm looking forward to having him in Houston and helping him continue to grow as a player."