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Austin Community College isn't in Houston, but it is right next door to the UT campus (the Rio Grande campus of ACC is literally a block away). ACC currently has 6 campuses, with one being built in Round Rock, so you have a good pick geographically of which campus to go to for classes. Being in Austin before transferring can be very helpful as well. You can speak to UT advisors, and also check out the other universities that are close by, that way you know what else is in the area if worst comes to worst.
ACC does not have on campus housing, but many students rent out apartments (some are by the bedroom student only apartments close by on bus routes). Many of my friends actually live in the West Campus area, with roommates who go to UT.
I'm not going to try glorifying ACC to an annoying extent; all I can say is I've so far loved my experience with ACC and am very confident about getting accepted for the Fall of '10. Many of my friends who went to ACC with me recently were accepted to McCombs and are loving it there too.
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