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From Odwiki

Displacement artifacts have various sources.

Displacement Bounds

As a Houdini beginner, I often banged my head about the simplest scenes using displacement which rendered out with horrible artifacts, like in the attached picture:

One method to overcome this is by using the displacement bound parameter which, unfortunately, was not available for me when I selected the geometry object. If that is your case, add that parameter yourself:

Press the gear icon, then "Edit rendering parameters", Choose the Mantra folder according to your Version, e.g. "Mantra 9.1", open the "Shading" Folder, select "Displacement Bound" , right click it and choose "Install Parameters".

After that, in the "Render" -> "Shading" tab, set the "Displacement Bound" value to the lowest value that still does not show artifacts.

That way your image might look like this: