McDaniels came to Houston in February in a trade with Philadelphia. He appeared in 62 games as a rookie last season for the 76ers and Rockets. He averaged 7.9 points, 3.2 rebounds, 1.2 assists and 1.1 blocks.
The 6-foot-6 forward was the 32nd overall pick in the 2014 draft.
Terms of the deal weren't released.
The move comes a day after Houston shipped four players and a 2016 lottery protected first-round draft pick to Denver in exchange for point guard Ty Lawson.