Most fantasy I enjoy currently falls under the Magic Realism umbrella, or at least have a tang of it (Sean Stewart, Holly Phillips, Jeffrey Ford, Jeff Vandermeer, John Crowley among several dozen others).
If we are using a strict defintion, it's not magic realism unless speaking of South American, or South American inspired fantastic iction, in the mold of Borges (who was influenced by Kafka), Marquez etc. Magic realism has become something that anyone who doesn't want to call themselves fantasy writers claims, but there is no difference - there is plenty of fantasy that doesn't have familiar and overused tropes like Witches, Wizards, or set in medievil times That's a limited, and ultimately false defintion of fantasy, as anybody who keeps track of the Hugos, Nebulas, World Fanatsy Awards, etc know.
At any rate, I just announced and E-Zine that is spinning of my site, that pay $.05 cents a word, with a $55 minimum. I'm accepting all Fantasy short-fiction, whether magic realism, epic, high, sword/sorcery, slipstream, steampunk, dark - whatever. For details
read here