The specifics of the contract have yet to be confirmed but the Houston Texans did indeed acquire free agent wide receiver Nate Washington. Washington should come in as the number three receiver behind clear number one DeAndre Hopkins with recent signee Cecil Shorts being the number two.
Washington had a decent enough tenure as part of the Tennessee Titans from 2009 to 2014 but never truly developed into being a star wide receiver, mostly due to clutter at the position on his most recent team. The Titans notoriously shuffled around their WR depth chart over the years so at least we have a solid idea where Washington will stand in terms of role now that he's in Houston.
Although Nate Washington is likely to be the third receiving option, he does still have enough talent to be the occasional deep threat, especially once teams begin to double team DeAndre Hopkins.
With the Texans replacing Andre Johnson with not one but two new wide receivers, it suggests the team is focusing on adding a little more variety to their passing game but I'd still expect them to lean heavily on running back Arian Foster.
For fantasy purposes, Foster and Hopkins remain the two high value players you want with Shorts being an early candidate for a (very) deep sleeper.