So there is this movie my husband was trying to tell me about but he can't remember the name of it. He said it had an octopus that was in the basement of a house and the tentacles ran through the walls. He vividly remembered a woman in her bathroom and the tentacles bust through the wall and grab her. They wrapped around her so tight her face was swollen like the mumps but she had like some gills or flaps on them.
This sounds like The Kindred, a gene-splice horror film from 1987. The movie's main creature was a human/octopus hybrid, and the woman with the gills was another hybrid. The following excerpt is from the movie's Wikipedia entry:
The Kindred is a 1987 American horror film directed by Jeffrey Obrow and Stephen Carpenter. Obrow also produced the film, and co-wrote it along with Carpenter, Earl Ghaffari and John Penney. Starring David Allen Brooks, Amanda Pays and Rod Steiger, The Kindred was released on January 9, 1987 and grossed just over two million dollars.
Amanda's deathbed request to her son, John, was for him to destroy all the lab notes from her last experiment. She also blurts out he had a brother. At the funeral John meets Melissa, who claims to be his mother's biggest fan. Together with some of John's friends they go to Amanda's house, but none are prepared for what they find there: his monstrous, tentacled baby brother. Now he has to get to his mother's greatest advancement in Human Evolution before a mad scientist gets to him first.
I watched this in the mall theater back when, and it was a decent flick. I believe that the following image portrays the female character that your husband described.