The 6-foot-3, 241-pound Graham was selected with the 118th overall pick. Graham's 16 touchdown receptions for the Badgers were a school record for a tight end. He finished his college career with 121 catches for 1,492 yards and was a first-team All-Big Ten selection as a junior and senior.
Graham is the seventh of the Texans' nine draft picks to sign, joining receivers Dorin Dickerson and Trindon Holliday, cornerback Sherrick McManis, defensive tackle Earl Mitchell, linebacker Darryl Sharpton and guard Shelley Smith.
Cornerback Kareem Jackson, the Texans' first-round selection, and running back Ben Tate are the only draft picks still unsigned. Houston opens training camp on Friday.