Boone played for the Washington Nationals last season, hitting .241 with six homers and 28 RBIs.
"Aaron gives us another veteran who can share time at third base and also help us with his overall versatility," Wade said in a statement. "We believe that Geoff Blum, Aaron and Chris Johnson give us good depth at third."
Houston decided last week not to offer third baseman Ty Wigginton a contract, allowing him to become a free agent. Wade said the decision was made to save money.
Boone has a .264 career average in 11 seasons with 126 homers and 555 RBIs for Cincinnati, the New York Yankees, Cleveland, Florida and Washington.
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