What is wrong with using Magical Realism? According to wikipedia, it's "fiction and literature in particular, with magic or the supernatural presented in an otherwise real-world or mundane setting, (...)," which seems to be a tight fit with what the nominator wanted. "Real-world/mundane setting" doesn't specify whether it's an urban or rural setting (which was why they felt uncomfortable with using Urban Fantasy), nor the time period (iirc, they wanted the option to ask for a historical setting, too).