”Basically, it’s a fantasy story that takes place in the city — often, a modern city, rather than a Medieval or Victorian one. This city is often in ‘our’ world — and in fact, I’ve heard ‘urban fantasy’ used as a shorthand for ‘an immersive fantasy that takes place on Earth rather than on a secondary world.’ If it takes place in New York or London, it’s an Urban Fantasy.
But in fact, a lot of the tropes of urban fantasy, such as a hero living in a society that includes vampires and witches among normal people, often take place now in small towns or suburbs — think The Vampire Diaries‘ Mystic Falls. So some people have suggested that we start using the term ‘suburban fantasy’ or ‘rural fantasy’ to describe these — or just admit that ‘urban fantasy’ doesn’t have to be urban.”
Citerat ur ”10 Key Terms That Will Help You Appreciate Fantasy Literature”, en mycket bra och pedagogisk lista sammanställd av Charlie Jane Anders på io9.