[erimir]

That's how Houston Street in Manhattan is pronounced. Probably at least some people with that last name pronounced it that way.

Given the spelling of the name, I would venture that "house-ton" is the more logical pronunciation, and perhaps the more etymologically justified as well. Generally speaking, in Middle English usually represented the sound [u] (the vowel of modern boot), which later during the Great Vowel Shift changed to [au] (the vowel of modern house). I can't think of any other examples of words with pronounced as [ju] "yoo". The name Houston is Scottish, and Scots/Scottish English did not follow all the vowel changes that happened during the Great Vowel Shift (hence you hear the pronunciation [hus] "hoose" for "house" in Scotland), in which case perhaps pronouncing it like "Hoosten" would be more etymologically correct?