Urban legends is a major theme in the show. Among every wild rumor and bizarre story was an element of truth. In real life I haven't really heard much talk about such things. Though myths and legends were an integral part of most peoples' lives throughout the past, in this age of camera phones live video feeds there isn't much left that can't be proven or disproven.
Or maybe I'm just too antisocial and rumors just tend not to reach my ears.

The only urban legend I can think of is a pretty mild one my girlfriend told me about:
Apparently there is a house out in the woods that is haunted. People call it the animal house, or dog house or something along those lines. It used to be the home of a witch but is now frequented by satan-worshipers and people who believe they are vampires. They perform animal sacrifices, which is evident by all the blood stains and animal bones all over the place. One day a group of mischievous kids decided to defile the place by spray-painting crucifixes and the phrase "Jesus Loves You!" all over the place.

Post any urban legends you've heard of or know about.