The Contemporary Fiction genre is stories that could happen to real people in real settings. They usually take place in the present time, with things that are currently, or could be happening, in the same time period - which is the same time period that the book’s characters are living in.
Contemporary fiction is normally focused on giving readers a window into some corner of everyday experience and showing them what it would be like to walk in someone else’s shoes. Some stories may be politically-motivated or designed to raise social awareness, while others exist purely for the purposes of reading entertainment.
Many fans who enjoy contemporary fiction relish this focus on realism, and may even punish stories that drift too far afield into unlikely scenarios.