Max Cap Room
$22 million (not including their first round picks)
$8.1 million Room Mid-Level Exception

Potential Free Agents

• Fred VanVleet ($44.9 million team option, Early Bird Rights, Unrestricted)

• Jeff Green ($10.4 million cap hold, Early Bird Rights, Unrestricted)

• Jock Landale ($8 million non-guaranteed salary)

• Jae'Sean Tate ($13.5 million cap hold,, Full Bird Rights, Unrestricted)

• Steven Adams ($19.6 million cap hold, Full Bird Rights, Unrestricted)

• Aaron Holiday ($5 million team option, Early Bird Rights, Unrestricted)

Summary

The Rockets could technically have some cap space, but it would come at the cost of losing most, if not all, of their key free agents, including VanVleet.

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If they operate over the cap, the Rockets will have about $60 million below the luxury tax with eight players under contract (not including their first round pick), which could be enough to re-sign their own key free agents while still having the $14.1 million Non-Taxpayer MLE and the $5.1 million Bi-Annual Exception to add talent, depending on which players they retain, and their respective salaries.

 

There's also a chance that their own free agents push them above the first apron, which would only allow them to have the $5.7 million Taxpayer MLE to add talent.

Potential Free Agency Targets
Passing / Playmaking

• Bruce Brown

• Malcolm Brogdon

• Larry Nance Jr.

Rim Protection / Bigs

• Julius Randle

• Myles Turner

• Clint Capela

Shooting​

• Khris Middleton

• Naz Reid

• Brook Lopez