Urban legend
An urban legend, urban myth, urban tale, or contemporary legend, is a form of modern folklore
Folklore consists of legends, music, oral history, proverbs, jokes, popular beliefs, fairy tales and customs that are the traditions of a culture, subculture, or group. It is also the set of practices through which those expressive genres are shared. The study of folklore is sometimes called...

 consisting of stories that may or may not have been believed by their tellers to be true. As with all folklore and mythology, the designation suggests nothing about the story's veracity, but merely that it is in circulation, exhibits variation over time, and carries some significance that motivates the community in preserving and propagating it.

Despite its name, an urban legend does not necessarily originate in an urban area
Urban area
An urban area is characterized by higher population density and vast human features in comparison to areas surrounding it. Urban areas may be cities, towns or conurbations, but the term is not commonly extended to rural settlements such as villages and hamlets.Urban areas are created and further...