Warburton has been impressed with the work Houston has done at Falkirk, who will take on Rangers at the Falkirk Stadium in the Scottish Championship today.
“That is a good question,” the Englishman told The Times when asked for his manager of the year. “My immediate response is that, if I look in my division, I would say Peter Houston.
“He is doing a great job. They are organised, they are fit, and they are tough to play against.”
Rangers are at the top of the Scottish Championship table at the moment with 72 points from 28 matches.
The Glasgow giants are 14 points clear of second-placed Falkirk, who have played two more games than third-placed Hibernian.
Falkirk are likely to finish in the Scottish Championship playoffs this season, and that is going to give them a chance of getting promoted to the Scottish Premiership.
Hibernian are strong favourites to finish second, but there is a chance that the Bairns could pip them to that position.
Meanwhile, Rangers are virtually guaranteed to gain automatic promotion to the Scottish Premiership at the end of the season.