House was the final cut for the Heat prior to Sunday's regular season opener against the Mavericks.
The 6-foot-1 sharpshooter signed a two-year deal with Miami prior to the 2010-11 campaign, and went on to average 6.5 points while hitting 39 percent from three-point range.
House, 33, has played for nine NBA teams after being selected by the Heat in the second round of the 2000 draft.
He won an NBA title with the Celtics in 2008.
The decision to waive House means rookies Terrel Harris and Mickell Gladness, as well as the oft-injured Eddy Curry, have made the Heat roster.